Gladstone Investment Corp. (GAIN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

P10, Inc.

Gladstone Investment Corp.

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Beneficient

Why is Gladstone Investment Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.51%

Positive results in Mar 26

ROCE(HY) Highest at 31.65%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
PRE-TAX PROFIT(Q) Highest at USD 82.37 MM

With ROE of 20.20%, it has a very attractive valuation with a 0.92 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.90%, its profits have risen by 71.7% ; the PEG ratio of the company is 0.1

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 4.90% in the last 1 year, much lower than market (S&P 500) returns of 25.22%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gladstone Investment Corp. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gladstone Investment Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gladstone Investment Corp.

6.36%

0.18

19.47%

S&P 500

22.24%

1.91

13.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.92%

EBIT Growth (5y)

79.15%

EBIT to Interest (avg)

4.23

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

53.99%

Pledged Shares

Institutional Holding

18.44%

ROCE (avg)

20.39%

ROE (avg)

14.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.92

EV to EBIT

3.41

EV to EBITDA

3.41

EV to Capital Employed

0.92

EV to Sales

5.79

PEG Ratio

0.08

Dividend Yield

10.21%

ROCE (Latest)

27.10%

ROE (Latest)

20.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

ROCE(HY)

Highest at 31.65%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

PRE-TAX PROFIT(Q)

Highest at USD 82.37 MM

NET PROFIT(Q)

Highest at USD 82.37 MM

EPS(Q)

Highest at USD 2.07

-14What is not working for the Company

NET SALES(HY)

At USD 52.6 MM has Grown at -24.64%

OPERATING CASH FLOW(Y)

Lowest at USD 42.11 MM

INTEREST(9M)

At USD 31.61 MM has Grown at 31.79%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 11.6%

RAW MATERIAL COST(Y)

Grown by 95.95% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.97 times

Here's what is working for Gladstone Investment Corp.

Pre-Tax Profit

At USD 82.37 MM has Grown at 360.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 82.37 MM has Grown at 360.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

Highest at USD 82.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 82.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Here's what is not working for Gladstone Investment Corp.

Net Sales

At USD 52.6 MM has Grown at -24.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Interest

At USD 31.61 MM has Grown at 31.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 42.11 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Lowest at 7.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 11.6%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 95.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales