(GAIN) Gladstone Investment - Ratings and Ratios
Senior Debt, Subordinated Debt, Equity Stakes, Warrants, Mezzanine Loans
GAIN EPS (Earnings per Share)
GAIN Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 18.5% |
| Value at Risk 5%th | 29.9% |
| Relative Tail Risk | -2.10% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.38 |
| Alpha | 0.19 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.320 |
| Beta | 0.716 |
| Beta Downside | 0.594 |
| Drawdowns 3y | |
|---|---|
| Max DD | 14.76% |
| Mean DD | 3.89% |
| Median DD | 3.39% |
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 | 548m |
| Sub-Industry | Asset Management & Custody Banks |
| IPO / Inception | 2005-06-23 |
| Return 12m vs S&P 500 | -3.98% |
| Analyst Rating | 4.20 of 5 |
GAIN Dividends
| Dividend Yield | 12.25% |
| Yield on Cost 5y | 30.24% |
| Yield CAGR 5y | 15.59% |
| Payout Consistency | 94.6% |
| Payout Ratio | 54.2% |
GAIN Growth Ratios
| CAGR 3y | 13.54% |
| CAGR/Max DD Calmar Ratio | 0.92 |
| CAGR/Mean DD Pain Ratio | 3.48 |
| Current Volume | 168.9k |
| Average Volume | 116.8k |
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income (102.9m TTM) > 0 and > 6% of Revenue (6% = 6.97m TTM) |
| FCFTA -0.15 (>2.0%) and ΔFCFTA -26.18pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -387.7% (prev -31.11%; Δ -356.6pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.15 (>3.0%) and CFO -170.0m <= Net Income 102.9m (YES >=105%, WARN >=100%) |
| Net Debt (456.8m) to EBITDA (74.2m) ratio: 6.15 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.01 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (38.4m) change vs 12m ago 4.79% (target <= -2.0% for YES) |
| Gross Margin 79.05% (prev 58.01%; Δ 21.04pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 11.55% (prev 7.11%; Δ 4.44pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -1.77 (EBITDA TTM 74.2m / Interest Expense TTM 32.8m) >= 6 (WARN >= 3) |
Altman Z'' -3.06
| (A) -0.39 = (Total Current Assets 6.33m - Total Current Liabilities 457.0m) / Total Assets 1.14b |
| (B) -0.02 = Retained Earnings (Balance) -20.1m / Total Assets 1.14b |
| (C) -0.06 = EBIT TTM -58.0m / Avg Total Assets 1.01b |
| (D) -0.03 = Book Value of Equity -20.1m / Total Liabilities 608.6m |
| Total Rating: -3.06 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 30.98
| 1. Piotroski 3.0pt = -2.0 |
| 2. FCF Yield -16.68% = -5.0 |
| 3. FCF Margin data missing |
| 4. Debt/Equity 0.85 = 2.15 |
| 5. Debt/Ebitda 6.15 = -2.50 |
| 6. ROIC - WACC (= -9.91)% = -12.39 |
| 7. RoE 20.86% = 1.74 |
| 8. Rev. Trend 11.90% = 0.89 |
| 9. EPS Trend -38.36% = -1.92 |
What is the price of GAIN shares?
Over the past week, the price has changed by -1.81%, over one month by -1.39%, over three months by -2.85% and over the past year by +10.00%.
Is Gladstone Investment a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of GAIN is around 15.67 USD . This means that GAIN is currently undervalued and has a potential upside of +15.65% (Margin of Safety).
Is GAIN a buy, sell or hold?
- 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 | 14.1 | 4.3% |
| Analysts Target Price | 14.1 | 4.3% |
| ValueRay Target Price | 17 | 25.4% |
GAIN Fundamental Data Overview November 16, 2025
P/E Trailing = 5.508
P/E Forward = 9.6154
P/S = 5.6098
P/B = 1.024
P/EG = 5.4638
Beta = 0.818
Revenue TTM = 116.2m USD
EBIT TTM = -58.0m USD
EBITDA TTM = 74.2m USD
Long Term Debt = unknown (0.0)
Short Term Debt = 457.0m USD (from shortTermDebt, last quarter)
Debt = 457.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 456.8m USD (from netDebt column, last quarter)
Enterprise Value = 1.01b USD (548.3m + Debt 457.0m - CCE 210.0k)
Interest Coverage Ratio = -1.77 (Ebit TTM -58.0m / Interest Expense TTM 32.8m)
FCF Yield = -16.68% (FCF TTM -167.6m / Enterprise Value 1.01b)
FCF Margin = -144.2% (FCF TTM -167.6m / Revenue TTM 116.2m)
Net Margin = 88.58% (Net Income TTM 102.9m / Revenue TTM 116.2m)
Gross Margin = 79.05% ((Revenue TTM 116.2m - Cost of Revenue TTM 24.3m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 65.11%)
Tobins Q-Ratio = 0.88 (Enterprise Value 1.01b / Total Assets 1.14b)
Interest Expense / Debt = 1.97% (Interest Expense 8.98m / Debt 457.0m)
Taxrate = 21.0% (US default 21%)
NOPAT = -45.8m (EBIT -58.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.01 (Total Current Assets 6.33m / Total Current Liabilities 457.0m)
Debt / Equity = 0.85 (Debt 457.0m / totalStockholderEquity, last quarter 535.8m)
Debt / EBITDA = 6.15 (Net Debt 456.8m / EBITDA 74.2m)
Debt / FCF = -2.73 (negative FCF - burning cash) (Net Debt 456.8m / FCF TTM -167.6m)
Total Stockholder Equity = 493.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 9.00% (Net Income 102.9m / Total Assets 1.14b)
RoE = 20.86% (Net Income TTM 102.9m / Total Stockholder Equity 493.6m)
RoCE = -11.75% (EBIT -58.0m / Capital Employed (Equity 493.6m + L.T.Debt 0.0))
RoIC = -4.48% (negative operating profit) (NOPAT -45.8m / Invested Capital 1.02b)
WACC = 5.42% (E(548.3m)/V(1.01b) * Re(8.65%) + D(457.0m)/V(1.01b) * Rd(1.97%) * (1-Tc(0.21)))
Discount Rate = 8.65% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 5.79%
Fair Price DCF = unknown (Cash Flow -167.6m)
EPS Correlation: -38.36 | EPS CAGR: -26.86% | SUE: -1.01 | # QB: 0
Revenue Correlation: 11.90 | Revenue CAGR: 6.65% | SUE: -0.11 | # QB: 0
Additional Sources for GAIN Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle