(GLAD) Gladstone Capital - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 432m USD | Total Return: -20.6% in 12m
Avg Turnover: 2.97M
EPS Trend: 90.1%
Qual. Beats: 1
Rev. Trend: 9.0%
Qual. Beats: 0
Warnings
Share dilution 27.0% YoY
Below Avwap Earnings
Tailwinds
No distinct edge detected
Gladstone Capital Corporation (NASDAQ: GLAD) is a Business Development Company (BDC) that provides debt and equity financing to lower middle-market firms in the United States. The company employs a sector-agnostic approach, targeting businesses with annual EBITDA between $3 million and $25 million across industries such as aerospace, healthcare, and specialty manufacturing.
The funds investment structure primarily focuses on senior secured loans, unitranche debt, and mezzanine financing, often paired with minority equity stakes. As a BDC, Gladstone is required by law to distribute at least 90% of its taxable income to shareholders, a structure designed to provide capital to private companies that may lack access to traditional bank financing.
For a detailed breakdown of the funds historical performance and portfolio health, consider reviewing the latest metrics on ValueRay.
Gladstone seeks exits through strategic acquisitions, initial public offerings, or recapitalizations. Its strategy emphasizes buy and build acquisitions and debt refinancing for companies generating sales between $20 million and $150 million.
- Floating rate debt exposure drives net interest margin amid Fed rate shifts
- Lower middle market credit quality impacts non-accrual rates and asset values
- Transaction volume in private equity markets dictates new loan originations
- Public equity market volatility affects valuation of minority stake holdings
- Dividend sustainability depends on net investment income coverage from interest payments
| Net Income: 43.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.06 > 0.02 and ΔFCF/TA -21.14 > 1.0 |
| NWC/Revenue: -256.3% < 20% (prev -224.7%; Δ -31.65% < -1%) |
| CFO/TA -0.06 > 3% & CFO -53.6m > Net Income 43.9m |
| Net Debt (192.9m) to EBITDA (92.3m): 2.09 < 3 |
| Current Ratio: 0.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (28.4m) vs 12m ago 27.03% < -2% |
| Gross Margin: 67.65% > 18% (prev 0.81%; Δ 6.68k% > 0.5%) |
| Asset Turnover: 8.29% > 50% (prev 14.10%; Δ -5.81% > 0%) |
| Interest Coverage Ratio: 2.23 > 6 (EBITDA TTM 92.3m / Interest Expense TTM 22.7m) |
| A: -0.20 (Total Current Assets 12.4m - Total Current Liabilities 193.1m) / Total Assets 925.1m |
| B: -0.02 (Retained Earnings -19.1m / Total Assets 925.1m) |
| C: 0.06 (EBIT TTM 50.5m / Avg Total Assets 850.9m) |
| D: -0.05 (Book Value of Equity -19.0m / Total Liabilities 407.0m) |
| Altman-Z'' = -1.00 = CCC |
As of May 23, 2026, the stock is trading at USD 19.15 with a total of 146,633 shares traded.
Over the past week, the price has changed by -0.57%,
over one month by +2.01%,
over three months by +7.32% and
over the past year by -20.62%.
Gladstone Capital has received a consensus analysts rating of 3.33. Therefore, it is recommended to hold GLAD.
- StrongBuy: 1
- Buy: 0
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 22 | 14.9% |
P/E Forward = 9.6339
P/S = 4.5
P/B = 0.8979
P/EG = 2.3116
Revenue TTM = 70.5m USD
EBIT TTM = 50.5m USD
EBITDA TTM = 92.3m USD
Long Term Debt = unknown (0.0)
Short Term Debt = 193.1m USD (from shortTermDebt, last quarter)
Debt = 193.1m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 192.9m USD (calculated: Debt 193.1m - CCE 216k)
Enterprise Value = 625.3m USD (432.4m + Debt 193.1m - CCE 216k)
Interest Coverage Ratio = 2.23 (Ebit TTM 50.5m / Interest Expense TTM 22.7m)
EV/FCF = -11.68x (Enterprise Value 625.3m / FCF TTM -53.6m)
FCF Yield = -8.56% (FCF TTM -53.6m / Enterprise Value 625.3m)
FCF Margin = -75.95% (FCF TTM -53.6m / Revenue TTM 70.5m)
Net Margin = 62.31% (Net Income TTM 43.9m / Revenue TTM 70.5m)
Gross Margin = 67.65% ((Revenue TTM 70.5m - Cost of Revenue TTM 22.8m) / Revenue TTM)
Gross Margin QoQ = 73.78% (prev 52.81%)
Tobins Q-Ratio = 0.68 (Enterprise Value 625.3m / Total Assets 925.1m)
Interest Expense / Debt = 11.74% (Interest Expense 22.7m / Debt 193.1m)
Taxrate = 21.0% (US default 21%)
NOPAT = 39.9m (EBIT 50.5m * (1 - 21.00%))
Current Ratio = 0.06 (Total Current Assets 12.4m / Total Current Liabilities 193.1m)
Debt / Equity = 0.37 (Debt 193.1m / totalStockholderEquity, last quarter 518.1m)
Debt / EBITDA = 2.09 (Net Debt 192.9m / EBITDA 92.3m)
Debt / FCF = -3.60 (negative FCF - burning cash) (Net Debt 192.9m / FCF TTM -53.6m)
Total Stockholder Equity = 491.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.16% (Net Income 43.9m / Total Assets 925.1m)
RoE = 8.61% (Net Income TTM 43.9m / Total Stockholder Equity 510.7m)
RoCE = 9.88% (EBIT 50.5m / Capital Employed (Equity 510.7m + L.T.Debt 0.0))
RoIC = 4.31% (NOPAT 39.9m / Invested Capital 924.9m)
WACC = 8.46% (E(432.4m)/V(625.6m) * Re(8.10%) + D(193.1m)/V(625.6m) * Rd(11.74%) * (1-Tc(0.21)))
Discount Rate = 8.10% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 96.61 | Cagr: 12.52%
[DCF] Fair Price = unknown (Cash Flow -53.6m)
EPS Correlation: 90.12 | EPS CAGR: 31.89% | SUE: 1.23 | # QB: 1
Revenue Correlation: 8.99 | Revenue CAGR: 2.80% | SUE: 0.01 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.48 | Chg30d=-0.83% | Revisions=-25% | Analysts=5
EPS current Year (2026-09-30): EPS=1.92 | Chg30d=-0.72% | Revisions=+0% | GrowthEPS=-5.1% | GrowthRev=+13.1%
EPS next Year (2027-09-30): EPS=1.95 | Chg30d=+2.02% | Revisions=+50% | GrowthEPS=+1.5% | GrowthRev=+3.0%
[Analyst] Revisions Ratio: +50%