GAIN Stock Analysis: Gladstone Investment | NASDAQ
Asset Management | NASDAQ, USA | Market Cap: 620m USD | 12M Return: 24.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.18M
EPS Trend: 1.0%
Qual. Beats: 1
Rev. Trend: 69.5%
Qual. Beats: -1
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Gladstone Investment Corporation (NASDAQ: GAIN) is a Business Development Company (BDC) that provides debt and equity financing to lower middle market, mature-stage U.S. companies. As a BDC, it operates under the regulatory framework of the Investment Company Act of 1940, which requires it to distribute most of its taxable income as dividends to shareholders and primarily invest in private or thinly-traded companies.
The fund targets small and mid-sized businesses primarily in manufacturing, consumer products, and business/consumer services sectors. It prefers companies with EBITDA between $4 million and $15 million, structuring debt investments typically ranging from $5 million to $30 million and equity investments from $10 million to $40 million.
Its investment vehicles include senior debt instruments (loans, term loans, lines of credit, senior notes), senior subordinated and junior subordinated debt (mezzanine loans), as well as equity instruments such as limited liability company interests, warrants, and options. GAIN avoids early-stage and start-up companies.
The fund generally seeks to influence its portfolio companies at the board level, often taking a majority equity stake, and holds investments for an average of roughly seven years before exiting through a sale, recapitalization, or IPO.
Listed on NASDAQ since its 2005 IPO, GAIN sits within the Financials sector and the Asset Management & Custody Banks sub-industry under GICS classification, reflecting its role as a publicly traded investment vehicle focused on direct private lending and equity participation.
- Interest rate cuts pressure net interest margin on loan portfolio
- Portfolio non-accruals rise, weighing on net investment income
- Lower middle market deal activity drives new originations pace
| Net Income: 194.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.08 > 0.02 and ΔFCF/TA -18.66 > 1.0 |
| NWC/Revenue: -78.17% < 20% (prev 7.20%; Δ -85.37% < -1%) |
| CFO/TA -0.08 > 3% & CFO -101.6m > Net Income 194.9m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 0.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (39.8m) vs 12m ago 8.40% < -2% |
| Gross Margin: 57.88% > 18% (prev 68.57%; Δ -10.70% > 0.5%) |
| Asset Turnover: 9.31% > 50% (prev 8.26%; Δ 1.05% > 0%) |
| Interest Coverage Ratio: 3.48 > 6 (EBIT TTM 133.1m / Interest Expense TTM 38.2m) |
| A: -0.07 (Total Current Assets 1.16m - Total Current Liabilities 88.9m) / Total Assets 1.32b |
| B: 0.14 (Retained Earnings 181.5m / Total Assets 1.32b) |
| C: 0.11 (EBIT TTM 133.1m / Avg Total Assets 1.21b) |
| D: 1.02 (Book Value of Equity 668.2m / Total Liabilities 654.6m) |
| Altman-Z'' = 1.83 = BBB |
As of July 12, 2026, the stock is trading at USD 16.46 with a total of 226,455 shares traded. Over the past week, the price has changed by +5.78%, over one month by +7.61%, over three months by +13.93% and over the past year by +24.56%.
Current recommended Stop Loss: 15.90 (which is 3.4% or 1.5 ATR below the current price).
Gladstone Investment has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy GAIN.
- StrongBuy: 3
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 16.7 | 1.3% |
P/E Trailing = 3.2621
P/E Forward = 16.2075
P/S = 3.3933
P/B = 0.9273
P/EG = 5.4094
Revenue TTM = 112.3m USD
EBIT TTM = 133.1m USD
EBITDA TTM = -83.1m USD
Long Term Debt = 436.5m USD (estimated: total debt 564.5m - short term 127.9m)
Short Term Debt = 127.9m USD (from shortTermDebt, last quarter)
Debt = 564.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 563.3m USD (calculated: Debt 564.5m - CCE 1.16m)
Enterprise Value = 1.18b USD (619.6m + Debt 564.5m - CCE 1.16m)
Interest Coverage Ratio = 3.48 (Ebit TTM 133.1m / Interest Expense TTM 38.2m)
EV/FCF = -11.64x (Enterprise Value 1.18b / FCF TTM -101.6m)
FCF Yield = -8.59% (FCF TTM -101.6m / Enterprise Value 1.18b)
FCF Margin = -90.50% (FCF TTM -101.6m / Revenue TTM 112.3m)
Net Margin = 173.6% (Net Income TTM 194.9m / Revenue TTM 112.3m)
Gross Margin = 57.88% ((Revenue TTM 112.3m - Cost of Revenue TTM 47.3m) / Revenue TTM)
Gross Margin QoQ = 4.25% (prev 82.44%)
Tobins Q-Ratio = 0.89 (Enterprise Value 1.18b / Total Assets 1.32b)
Interest Expense / Debt = 6.77% (Interest Expense 38.2m / Debt 564.5m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 105.1m (EBIT 133.1m * (1 - 21.00%))
Current Ratio = 0.01 (Total Current Assets 1.16m / Total Current Liabilities 88.9m)
Debt / Equity = 0.84 (Debt 564.5m / totalStockholderEquity, last quarter 668.2m)
Debt / EBITDA = -6.78 (negative EBITDA) (Net Debt 563.3m / EBITDA -83.1m)
Debt / FCF = -5.54 (negative FCF - burning cash) (Net Debt 563.3m / FCF TTM -101.6m)
Total Stockholder Equity = 572.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 16.17% (Net Income 194.9m / Total Assets 1.32b)
RoE = 34.04% (Net Income TTM 194.9m / Total Stockholder Equity 572.4m)
RoCE = 13.19% (EBIT 133.1m / Capital Employed (Equity 572.4m + L.T.Debt 436.5m))
RoIC = 7.72% (NOPAT 105.1m / Invested Capital 1.36b)
WACC = 6.68% (E(619.6m)/V(1.18b) * Re(7.90%) + D(564.5m)/V(1.18b) * Rd(6.77%) * (1-Tc(0.21)))
Discount Rate = 7.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 98.88 | Cagr: 6.79%
[DCF] Fair Price = unknown (Cash Flow -101.6m)
EPS Correlation: 1.00 | EPS CAGR: 0.47% | SUE: 4.0 | # QB: 1
Revenue Correlation: 69.50 | Revenue CAGR: 25.22% | SUE: -2.08 | # QB: -1
EPS current Quarter (2026-06-30): EPS=0.21 | Chg30d=-3.37% | Revisions=+0% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.21 | Chg30d=-2.27% | Revisions=+0% | Analysts=4
EPS current Year (2027-03-31): EPS=0.87 | Chg30d=-1.14% | Revisions=+29% | GrowthEPS=+0.0% | GrowthRev=+0.0%
EPS next Year (2028-03-31): EPS=0.93 | Chg30d=N/A | Revisions=+0% | GrowthEPS=+6.6% | GrowthRev=+5.8%
[Analyst] Revisions Ratio: +18% (up=5, down=3)