Gladstone Investment Corp. (GAIN)
Valuation Overview•Is Gladstone Investment Corp. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 54/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
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Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is broadly bullish, projecting solid upside. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
GAIN demonstrates strong business quality with robust profitability and healthy margins. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-2.3% 3Y CAGR) paired with highly explosive earnings growth (64.6% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 107.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $8.5M | -50.6% | -2.3% | -9.0% | +7.9% | |
| EBITDA | -$1.0M | — | +67.8% | — | — | |
| Net Income | -$11.9M | +182.8% | +73.2% | — | +22.2% | |
| EPS (Diluted) | $-0.30 | +168.0% | +64.6% | +30.1% | +19.3% | |
| Free Cash Flow | $8.1M | -189.2% | -182.6% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 63.5% | 54.9% | 64.0% | 76.0% |
| Operating Margin | 107.8% | 157.1% | 127.1% | 90.4% |
| Net Margin | 155.9% | 137.9% | 115.6% | 84.7% |
| FCF Margin | -96.2% | 22.7% | 25.6% | 61.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $0.22 | $0.26 | +16.9% | ||
| Q2'26 | $0.22 | $0.20 | -9.1% | ||
| Q1'26 | $0.23 | $0.21 | -10.3% | ||
| Q4'25 | $0.24 | $0.24 | +0.0% | ||
| Q3'25 | $0.23 | $0.24 | +4.3% | ||
| Q2'25 | $0.23 | $0.26 | +13.0% | ||
| Q1'25 | $0.24 | $0.23 | -4.2% | ||
| Q4'24 | $0.25 | $0.24 | -4.0% |
Total return is +19.0% (1Y), outperforming the benchmark by +3.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +17.4% | +5.0% | — |
| 1Y | +19.0% | +3.2% | +6.9% |
| 3YCAGR | +17.6% | -3.1% | +40.1% |
| 5YCAGR | +10.7% | -0.8% | +55.9% |
| 10YCAGR | +12.2% | -1.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Gladstone Investment Corp. (GAIN) valuation, health, and returns.
Based on peer relative multiples, Gladstone Investment Corp. appears Cheap versus peers compared to industry peers.
Gladstone Investment Corp. has multiple valuation anchors: Peer Relative Fair Value: $21.50 | Wall Street Analyst Target: $17.00 (implying +8.7% upside). A convergence of these signals offers higher conviction.
Gladstone Investment Corp. displays fair financial health with a composite quality score of 54/100, supported by a Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 15.5%.
Gladstone Investment Corp. pays a 9.4% dividend yield, covered by a 31% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Gladstone Investment Corp.'s current growth trajectory is Decelerating. The company achieved -50.6% 1Y revenue growth and +168.0% 1Y EPS growth, compared to its 3Y revenue CAGR of -2.3%.
Wall Street consensus is Hold based on 7 analysts, beating EPS expectations in 25% of recent quarters with a 1-quarter streak. The consensus price target represents a +8.7% change from current levels.
Investment risks for Gladstone Investment Corp. include: -13.4% 1-year max drawdown. Volatility risk is characterized by a beta of 0.49x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.