Overview Dividends

(GAIN) Gladstone Investment - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US3765461070

Senior Debt, Subordinated Debt, Equity Stakes, Warrants, Mezzanine Loans

GAIN EPS (Earnings per Share)

EPS Growth (3Y CAGR): -59.00%
EPS Trend (3Y Correlation): -45.1%

GAIN Revenue

Revenue Growth (3Y CAGR): 62.86%
Revenue Trend (3Y Correlation): 13.9%

Description: GAIN Gladstone Investment October 23, 2025

Gladstone Investment Corporation (NASDAQ: GAIN) is a Business Development Company (BDC) that focuses on lower-middle-market, mature-stage companies in the United States, primarily within manufacturing, consumer products, and business/consumer services.

The firm deploys capital through a mix of senior debt (senior loans, term loans, lines of credit, senior notes), senior-subordinated debt, junior-subordinated debt (mezzanine loans, subordinated notes), as well as equity, LLC interests, and warrants. It avoids start-ups and prefers minority equity stakes with board representation, while also being open to majority ownership.

Typical transaction sizes are $5 million–$30 million for debt and $10 million–$40 million for equity, targeting companies with EBITDA of $4 million–$15 million. The average holding period is about seven years, with exits via sale, recapitalization, IPO, or third-party transaction.

As of the latest filing, GAIN reported a net asset value (NAV) of roughly $1.1 billion and a dividend yield near 8.5%, reflecting the BDC’s reliance on high-yielding credit assets. The sector’s performance is closely tied to the U.S. credit cycle; widening high-yield spreads can compress returns, while a stable or tightening spread environment supports the fund’s income generation.

Key macro drivers include the Federal Reserve’s interest-rate policy (which influences the cost of borrowing for portfolio companies) and the health of the U.S. manufacturing sector, which accounts for a substantial portion of GAIN’s deal flow and is sensitive to industrial production trends and input-cost volatility.

For a deeper quantitative assessment, you may find ValueRay’s analytics platform useful.

GAIN Stock Overview

Market Cap in USD	537m
Sub-Industry	Asset Management & Custody Banks
IPO / Inception	2005-06-23

GAIN Stock Ratings

Growth Rating	81.0%
Fundamental	25.5%
Dividend Rating	93.4%
Return 12m vs S&P 500	-3.92%
Analyst Rating	4.20 of 5

GAIN Dividends

Dividend Yield 12m	12.01%
Yield on Cost 5y	32.74%
Annual Growth 5y	15.59%
Payout Consistency	94.6%
Payout Ratio	35.6%

GAIN Growth Ratios

Growth Correlation 3m	-37%
Growth Correlation 12m	84.6%
Growth Correlation 5y	88.7%
CAGR 5y	13.43%
CAGR/Max DD 3y (Calmar Ratio)	0.91
CAGR/Mean DD 3y (Pain Ratio)	3.46
Sharpe Ratio 12m	-0.97
Alpha	-6.39
Beta	0.918
Volatility	18.74%
Current Volume	136.7k
Average Volume 20d	145.7k
Stop Loss	13.4 (-3%)
Signal	-0.09

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income (79.6m TTM) > 0 and > 6% of Revenue (6% = 6.79m TTM)

FCFTA -0.04 (>2.0%) and ΔFCFTA -1.62pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -393.1% (prev -31.21%; Δ -361.9pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA -0.04 (>3.0%) and CFO -46.2m <= Net Income 79.6m (YES >=105%, WARN >=100%)

Net Debt (451.0m) to EBITDA (89.0m) ratio: 5.07 <= 3.0 (WARN <= 3.5)

Current Ratio 0.02 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (36.9m) change vs 12m ago 0.60% (target <= -2.0% for YES)

Gross Margin 77.33% (prev 71.84%; Δ 5.49pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 11.51% (prev 9.95%; Δ 1.55pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio -1.92 (EBITDA TTM 89.0m / Interest Expense TTM 30.3m) >= 6 (WARN >= 3)

Altman Z'' -3.19

(A) -0.42 = (Total Current Assets 11.2m - Total Current Liabilities 456.4m) / Total Assets 1.05b

(B) -0.00 = Retained Earnings (Balance) -5.15m / Total Assets 1.05b

(D) -0.01 = Book Value of Equity -5.11m / Total Liabilities 568.6m

Total Rating: -3.19 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 25.52

1. Piotroski 3.0pt = -2.0

2. FCF Yield -4.43% = -2.22

3. FCF Margin -38.67% = -7.50

4. Debt/Equity 0.94 = 2.08

5. Debt/Ebitda 5.07 = -2.50

6. ROIC - WACC (= -10.58)% = -12.50

7. RoE 16.48% = 1.37

8. Rev. Trend 13.88% = 1.04

9. EPS Trend -45.07% = -2.25

What is the price of GAIN shares?

As of November 04, 2025, the stock is trading at USD 13.82 with a total of 136,656 shares traded.
Over the past week, the price has changed by -1.07%, over one month by -0.36%, over three months by +1.21% and over the past year by +16.62%.

Is Gladstone Investment a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Gladstone Investment (NASDAQ:GAIN) is currently (November 2025) a stock to sell. It has a ValueRay Fundamental Rating of 25.52 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of GAIN is around 16.03 USD . This means that GAIN is currently undervalued and has a potential upside of +15.99% (Margin of Safety).

Is GAIN a buy, sell or hold?

Gladstone Investment has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy GAIN.

Strong Buy: 3
Buy: 0
Hold: 2
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the GAIN price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	13.9	0.4%
Analysts Target Price	13.9	0.4%
ValueRay Target Price	17.4	26.2%

GAIN Fundamental Data Overview October 25, 2025

Market Cap USD = 536.6m (536.6m USD * 1.0 USD.USD)
P/E Trailing = 6.463
P/E Forward = 15.015
P/S = 5.6467
P/B = 1.1002
P/EG = 5.4638
Beta = 0.918
Revenue TTM = 113.2m USD
EBIT TTM = -58.0m USD
EBITDA TTM = 89.0m USD
Long Term Debt = unknown (0.0)
Short Term Debt = 456.4m USD (from shortTermDebt, last quarter)
Debt = 456.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 451.0m USD (from netDebt column, last quarter)
Enterprise Value = 987.6m USD (536.6m + Debt 456.4m - CCE 5.36m)
Interest Coverage Ratio = -1.92 (Ebit TTM -58.0m / Interest Expense TTM 30.3m)
FCF Yield = -4.43% (FCF TTM -43.8m / Enterprise Value 987.6m)
FCF Margin = -38.67% (FCF TTM -43.8m / Revenue TTM 113.2m)
Net Margin = 70.31% (Net Income TTM 79.6m / Revenue TTM 113.2m)
Gross Margin = 77.33% ((Revenue TTM 113.2m - Cost of Revenue TTM 25.7m) / Revenue TTM)
Gross Margin QoQ = 83.41% (prev 65.11%)
Tobins Q-Ratio = 0.94 (Enterprise Value 987.6m / Total Assets 1.05b)
Interest Expense / Debt = 1.86% (Interest Expense 8.50m / Debt 456.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = -45.8m (EBIT -58.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.02 (Total Current Assets 11.2m / Total Current Liabilities 456.4m)
Debt / Equity = 0.94 (Debt 456.4m / totalStockholderEquity, last quarter 485.3m)
Debt / EBITDA = 5.07 (Net Debt 451.0m / EBITDA 89.0m)
Debt / FCF = -10.30 (negative FCF - burning cash) (Net Debt 451.0m / FCF TTM -43.8m)
Total Stockholder Equity = 483.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 7.55% (Net Income 79.6m / Total Assets 1.05b)
RoE = 16.48% (Net Income TTM 79.6m / Total Stockholder Equity 483.2m)
RoCE = -12.00% (EBIT -58.0m / Capital Employed (Equity 483.2m + L.T.Debt 0.0))
RoIC = -4.83% (negative operating profit) (NOPAT -45.8m / Invested Capital 948.7m)
WACC = 5.76% (E(536.6m)/V(993.0m) * Re(9.40%) + D(456.4m)/V(993.0m) * Rd(1.86%) * (1-Tc(0.21)))
Discount Rate = 9.40% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.66%
Fair Price DCF = unknown (Cash Flow -43.8m)
EPS Correlation: -45.07 | EPS CAGR: -59.00% | SUE: -1.93 | # QB: 0
Revenue Correlation: 13.88 | Revenue CAGR: 62.86% | SUE: -0.04 | # QB: 0

Additional Sources for GAIN Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle