Gladstone Capital Corporation (GLAD)
Valuation Overview•Is Gladstone Capital Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 59/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
GLAD demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance paired with highly explosive earnings growth (30.0% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 71.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $25.4M | +20.4% | — | — | +23.3% | |
| EBITDA | $22.6M | — | +83.1% | — | — | |
| Net Income | $16.0M | -38.7% | +42.9% | — | +21.2% | |
| EPS (Diluted) | $0.00 | -41.2% | +30.0% | — | +12.2% | |
| Free Cash Flow | $16.2M | +1246.5% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 67.6% | 79.2% | 77.3% | 69.1% |
| Operating Margin | 71.5% | 66.4% | 69.2% | 57.4% |
| Net Margin | 62.3% | 61.2% | 66.1% | 55.9% |
| FCF Margin | -75.9% | 5.4% | -45.9% | -59.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.49 | $0.52 | +6.1% | ||
| Q1'26 | $0.48 | $0.50 | +4.2% | ||
| Q4'25 | $0.50 | $0.52 | +3.2% | ||
| Q3'25 | $0.50 | $0.50 | +0.0% | ||
| Q2'25 | $0.50 | $0.50 | +0.0% | ||
| Q1'25 | $0.53 | $0.50 | -5.7% | ||
| Q4'24 | $0.53 | $0.50 | -5.7% | ||
| Q3'24 | $0.53 | $0.57 | +7.5% |
Total return is -23.2% (1Y), lagging the benchmark by -48.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -6.0% | -15.3% | — |
| 1Y | -23.2% | -48.2% | +7.3% |
| 3YCAGR | +9.2% | -10.0% | +33.0% |
| 5YCAGR | +5.1% | -7.8% | +43.2% |
| 10YCAGR | +9.8% | -3.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Gladstone Capital Corporation (GLAD) valuation, health, and returns.
Based on peer relative multiples, Gladstone Capital Corporation appears Slightly expensive versus peers compared to industry peers.
Gladstone Capital Corporation has multiple valuation anchors: Peer Relative Fair Value: $16.91 | Wall Street Analyst Target: $21.00 (implying +12.4% upside). A convergence of these signals offers higher conviction.
Gladstone Capital Corporation displays fair financial health with a composite quality score of 59/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 7.2%.
Gladstone Capital Corporation pays a 13.1% dividend yield, covered by a 95% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Gladstone Capital Corporation's current growth trajectory is Decelerating. The company achieved +20.4% 1Y revenue growth and -41.2% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 14 analysts, beating EPS expectations in 42% of recent quarters with a 3-quarter streak. The consensus price target represents a +12.4% change from current levels.
Investment risks for Gladstone Capital Corporation include: -43.3% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.56x.
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.