(GAIN) Gladstone Investment - NASDAQ
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 612m USD | Total Return: 16.3% in 12m
Avg Turnover: 3.84M
EPS Trend: 1.0%
Qual. Beats: 1
Rev. Trend: 69.5%
Qual. Beats: -1
Warnings
Earnings expected to drop: P/E 3.2 → Forward 16.0
Below Avwap Earnings
Tailwinds
No distinct edge detected
Gladstone Investment Corporation (GAIN) operates as a Business Development Company (BDC) focused on the U.S. lower middle market. The firm specializes in buyouts and debt refinancing for mature-stage companies, avoiding start-up ventures. Its investment strategy combines senior and subordinated debt instruments with equity ownership, typically targeting businesses with EBITDA between $4 million and $15 million.
The BDC model is structured to provide retail investors with exposure to private equity-style returns while maintaining liquidity through public exchanges. Unlike traditional private equity funds, BDCs are required by law to distribute at least 90% of their taxable income to shareholders to maintain their tax-advantaged status.
Gladstone focuses on the manufacturing, consumer products, and business services sectors, generally seeking majority control or a board seat to influence governance. The firm maintains a long-term investment horizon, typically holding assets for seven years before exiting through a sale, recapitalization, or public offering.
For a detailed analysis of this BDCs historical performance and dividend sustainability, consider exploring the data available on ValueRay.
- Net interest margin sensitivity to Federal Reserve benchmark interest rate fluctuations
- Realized capital gains from equity exits drive supplemental shareholder distribution levels
- Portfolio company credit quality affects non-accrual rates and net asset value
- Lower middle market buyout activity levels influence debt and equity deployment
- Manufacturing and consumer services sector performance impacts portfolio company EBITDA growth
| Net Income: 194.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -8.98 > 1.0 |
| NWC/Revenue: -474.4% < 20% (prev 7.20%; Δ -481.6% < -1%) |
| CFO/TA -0.08 > 3% & CFO -107.7m > 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: -0.40 (Total Current Assets 7.96m - Total Current Liabilities 540.5m) / 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'' = -0.38 = B |
As of June 14, 2026, the stock is trading at USD 15.37 with a total of 191,510 shares traded.
Over the past week, the price has changed by +0.13%,
over one month by -1.87%,
over three months by +11.35% and
over the past year by +16.34%.
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 | 8.5% |
P/E Trailing = 3.2117
P/E Forward = 16.0256
P/S = 3.354
P/B = 0.9166
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 1.13m)
Enterprise Value = 1.18b USD (612.5m + Debt 564.5m - CCE 1.13m)
Interest Coverage Ratio = 3.48 (Ebit TTM 133.1m / Interest Expense TTM 38.2m)
EV/FCF = 44.43x (Enterprise Value 1.18b / FCF TTM 26.5m)
FCF Yield = 2.25% (FCF TTM 26.5m / Enterprise Value 1.18b)
FCF Margin = 23.57% (FCF TTM 26.5m / 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 7.96m / Total Current Liabilities 540.5m)
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 = 21.29 (Net Debt 563.3m / FCF TTM 26.5m)
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 = 11.56% (NOPAT 105.1m / Invested Capital 909.1m)
WACC = 6.67% (E(612.5m)/V(1.18b) * Re(7.88%) + D(564.5m)/V(1.18b) * Rd(6.77%) * (1-Tc(0.21)))
Discount Rate = 7.88% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 98.88 | Cagr: 6.79%
[DCF] Terminal Value 73.10% ; FCFF base≈63.6m ; Y1≈55.8m ; Y5≈45.1m
[DCF] Fair Price = 4.03 (EV 723.9m - Net Debt 563.3m = Equity 160.5m / Shares 39.8m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
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=+25% | GrowthEPS=+0.0% | GrowthRev=+0.0%
EPS next Year (2028-03-31): EPS=0.93 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+6.6% | GrowthRev=+5.8%
[Analyst] Revisions Ratio: +25%