Education
About Us
Working with TipRanks
Follow Us
Gladstone Investment (GAIN)
:GAIN
Top Page
Gladstone Investment
(NASDAQ:GAIN)
71Outperform
Gladstone Investment (GAIN) vs. S&P 500 (SPY)
Market Cap
$549.25M
Dividend Yield6.53%
Average Volume (3M)135.22K
Price to Earnings (P/E)8.3
Beta (1Y)0.66
Revenue Growth-8.68%
EPS Growth-3.76%
CountryUS
Employees70
SectorFinancial
Sector Strength87
IndustryAsset Management
Share Statistics
EPS (TTM)0.20
Shares Outstanding36,837,380
10 Day Avg. Volume119,090
30 Day Avg. Volume135,224
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.08
Price to Sales (P/S)0.00
P/FCF Ratio33.21
Enterprise Value/Market Cap1.79
Enterprise Value/Revenue2.39
Enterprise Value/Gross Profit-178.17
Enterprise Value/Ebitda5.50
Forecast
1Y Price Target
$14.25Price Target Upside-4.43% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Gladstone Investment Business Overview & Revenue Model
Company DescriptionGladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options. The fund does not invest in start-ups. The fund seeks to invest in manufacturing, consumer products and business/consumer services sector. It seeks to invest in small and mid-sized companies based in the United States. The fund prefers to make debt investments between $5 million and $30 million and equity investments between $10 million and $40 million in companies. The fund seeks to invest in companies with revenue between $20 million and $100 million. The fund invests in companies with EBITDA from $3 million to $20 million. It seeks minority equity ownership and prefers to hold a board seat in its portfolio companies. It also prefers to take majority stake in its portfolio companies. The fund typically holds the investments for seven years and exits via sale or recapitalization, initial public offering, or sale to third party.
How the Company Makes MoneyGladstone Investment makes money through a combination of interest income, dividend income, and capital gains. The company primarily invests in debt securities, such as senior secured loans and subordinated debt, which generate interest income. Additionally, GAIN often takes equity positions in the businesses it finances, allowing it to earn dividend income and potentially realize capital gains upon the sale of these equity stakes. Key revenue streams include interest payments from its debt investments, dividends from equity holdings, and proceeds from exiting investments at a profit. Gladstone Investment's earnings are significantly influenced by its ability to identify high-quality investment opportunities and effectively manage its investment portfolio.
Gladstone Investment Financial Statement Overview
Summary
Gladstone Investment exhibits strong profitability with high margins. However, it faces challenges with inconsistent revenue growth and negative cash flows. The balance sheet shows moderate leverage, but the cash flow issues need to be addressed to ensure long-term financial health.Income Statement
The company shows a robust TTM net profit margin of 43.37% and a strong EBIT margin of 93.26%, indicating excellent profitability. However, revenue has fluctuated, with a decline in the recent TTM compared to the previous annual period. The revenue growth rate year-over-year is negative, reflecting potential challenges in maintaining consistent revenue streams.72
Positive
Balance Sheet
The debt-to-equity ratio is 0.93, which is moderate, implying manageable leverage. The equity ratio is stable at 45.06%, indicating a solid equity base. Return on equity is strong at 6.43% in the TTM, but has shown some variability due to fluctuating net income.65
Positive
Cash Flow
The company has negative free cash flow growth, and both operating and free cash flows are negative in the TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income to cash.55
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 83.61M | 103.17M | 32.66M | 99.15M | 48.73M | Gross Profit |
| 0.00 | 79.05M | 10.98M | 63.37M | 29.16M | EBIT |
| 0.00 | 85.31M | 51.42M | 118.56M | 44.78M | EBITDA |
| 0.00 | 37.10M | 51.42M | 80.89M | 44.78M | Net Income Common Stockholders |
| 0.00 | 85.31M | 35.55M | 102.32M | 42.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.15M | 2.46M | 2.68M | 14.19M | 2.06M | Total Assets |
| 1.01B | 938.08M | 765.64M | 740.41M | 643.73M | Total Debt |
| 455.71M | 398.35M | 292.61M | 261.35M | 151.38M | Net Debt |
| 440.56M | 395.13M | 289.92M | 247.16M | 149.32M | Total Liabilities |
| 507.32M | 445.37M | 325.90M | 294.58M | 261.37M | Stockholders Equity |
| 499.08M | 492.71M | 439.74M | 445.83M | 382.36M |
| Cash Flow | Free Cash Flow | |||
| 16.31M | -69.94M | -4.50M | 36.60M | -29.73M | Operating Cash Flow |
| 16.31M | -69.94M | -4.50M | 36.60M | -29.73M | Investing Cash Flow |
| -145.19M | 0.00 | -98.22M | -42.72M | -64.22M | Financing Cash Flow |
| -4.37M | 69.91M | -6.74M | -24.50M | 28.07M |
Gladstone Investment Technical Analysis
Positive
14.91
Price Trends
13.50
Positive
13.32
Positive
13.00
Positive
Market Momentum
0.31
Negative
71.90
Negative
94.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAIN, the sentiment is Positive. The current price of 14.91 is above the 20-day moving average (MA) of 13.97, above the 50-day MA of 13.50, and above the 200-day MA of 13.00, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 71.90 is Negative, neither overbought nor oversold. The STOCH value of 94.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GAIN.
Gladstone Investment Risk Analysis
Gladstone Investment disclosed 12 risk factors in its most recent earnings report. Gladstone Investment reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gladstone Investment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $549.25M | 8.27 | 13.17% | 6.53% | -8.68% | -3.76% | |
70 Neutral | $600.45M | 6.88 | 18.92% | 7.36% | 69.53% | 60.29% | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% | |
61 Neutral | $571.49M | 11.53 | 6.70% | 10.89% | 12.83% | -13.29% | |
58 Neutral | $517.39M | 15.47 | -1.88% | 14.66% | 2.30% | -63.97% | |
52 Neutral | $447.72M | 27.50 | 3.05% | 11.71% | 1.13% | -86.09% | |
48 Neutral | $444.67M | 46.04 | 1.95% | 13.80% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
GAIN
Gladstone Investment
14.91
2.25
17.77%
GLAD
Gladstone Capital
27.27
6.87
33.68%
PNNT
Pennantpark Investment
6.90
0.44
6.81%
CCAP
Crescent Capital BDC
15.61
-0.41
-2.56%
CION
CION Investment Corp
9.94
-0.94
-8.64%
PSBD
Palmer Square Capital BDC Inc.
14.02
-0.77
-5.21%
Gladstone Investment Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q4-2025)
| % Change Since: 6.12%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong fiscal year performance, significant realized gains, and increased investment activity. However, there are some concerns regarding the slight decrease in portfolio value, ongoing non-accrual status of some portfolio companies, and exposure to tariff risks.Q4-2025 Updates
Positive Updates
Strong Fiscal Year Performance
Gladstone Investment Corporation reported adjusted net investment income (NII) of $0.97 per share for the fiscal year, covering the $0.96 per share annual dividend. The total fair value of the portfolio increased to $979 million, up from $921 million at the prior year end.
Successful Exits and Realized Gains
The company successfully exited one of its portfolio companies, generating significant realized capital gains of $19.8 million.
Increased Investment Activity
For the year, Gladstone invested $221 million, up from $184 million in the prior year, including investments in four new portfolio companies.
Supplemental Distributions
Supplemental distributions of $1.66 per share were paid during the fiscal year, with an additional $0.54 per share declared post year-end.
Strong Investment Income Growth
Total investment income reached $93.7 million, up from $87.3 million in the prior year, driven by an increase in dividend and success fee income.
Strong Liquidity Position
Gladstone issued $126.5 million of publicly traded notes and completed an upsize of its credit facility to $270 million, with $214 million available.
Negative Updates
Slight Decrease in Portfolio Value
The portfolio value decreased slightly quarter-over-quarter from $1.1 billion, primarily due to exits and adjustments in valuation multiples.
Non-Accrual Status of Portfolio Companies
Four portfolio companies remain on non-accrual status, although improvements are noted in a few, with ongoing efforts to return them to accrual status.
Exposure to Tariff Risks
Concerns about tariff impacts on supply chains and customer demand were highlighted, with a specific focus on consumer-focused companies.
Company Guidance
During the fourth quarter and fiscal year ended March 31, 2025, Gladstone Investment Corporation reported positive financial performance, with an adjusted net investment income (NII) of $35.5 million, equating to $0.97 per share, thereby covering their annual dividend of $0.96 per share. The total fair value of their portfolio increased to $979 million, though it was slightly lower than the previous quarter's $1.1 billion. This discrepancy was due to a balance of new buyouts and the successful exit of a portfolio company, yielding significant realized capital gains of $19.8 million. Throughout the year, the company invested $221 million across four new portfolio companies and completed a dividend recap with Educators Resource. They maintained a monthly distribution of $0.08 per share and paid supplemental distributions totaling $1.66 per share for the year. Looking ahead, the management is cautiously optimistic about new acquisitions, despite economic uncertainties such as tariffs, and reported a net asset value (NAV) increase to $13.55 per share. The company ended the fiscal year with $55.3 million in spillover, sufficient for future distributions, and emphasized maintaining liquidity and flexibility to support portfolio growth.Gladstone Investment Corporate Events
DividendsFinancial Disclosures
Gladstone Investment Declares Monthly Cash Distributions
Positive
Apr 8, 2025
On April 8, 2025, Gladstone Investment Corporation announced that its board of directors declared monthly cash distributions for its common stockholders for April, May, and June 2025, along with a supplemental distribution in June. The company also plans to report its fourth fiscal quarter earnings on May 13, 2025, followed by a conference call on May 14, 2025, to discuss the results. These announcements reflect the company’s ongoing commitment to providing returns to its shareholders and maintaining transparency in its financial operations.
Spark’s Take on GAIN Stock
According to Spark, TipRanks’ AI Analyst, GAIN is a Neutral.
Gladstone Investment shows strong profitability and attractive valuation metrics, such as a low P/E ratio and high dividend yield. However, challenges with inconsistent revenue growth and negative cash flows present risks. Technical indicators suggest stable momentum, supporting a moderate overall score.
To see Spark’s full report on GAIN stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.