GLAD's valuation has decreased but remains relatively high, with a 17.38% premium to NAV, making it still expensive despite recent price declines. The current dividend yield is 7.9%, but the low coverage rate of 101% raises concerns about its sustainability in a high-interest rate environment. Non-accruals have slightly increased to 7.5% of cost, indicating some portfolio stress, and GLAD underperforms peers with lower non-accrual rates.
Gladstone Capital's improving internal risk ratings and low PIK income are positives, but rising non-accruals and barely covered dividends pose significant risks. The BDC's portfolio quality has improved, but the weakened US economic outlook and potential global trade war impacts remain concerns. Despite the dividend being covered by net investment income, the low coverage ratio and 18% premium to NAV make GLAD a hold, not a buy.
Gladstone Capital (GLAD) came out with quarterly earnings of $0.50 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.25 per share a year ago.
Gladstone Capital (GLAD) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Gladstone Capital is recommended as a 'Buy' for long-term income investors, with a 7.2% dividend yield. GLAD has shown strong price performance, with a 150% 5Y price return and 290% total return, outperforming the BIZD. The company's low leverage (0.68x) mitigates the impact of both the small portfolio size and the 7.4% decline in TII.
GLAD's current premium to NAV is unjustified due to weakening earnings, increased non-accruals, and poor dividend coverage, leading to a sell rating. Despite GLAD's attractive 7% dividend yield and monthly payouts, the dividend coverage is weak, risking potential cuts if portfolio conditions worsen. GLAD's portfolio is diversified but small, with significant exposure to floating rate investments. This increases the overall vulnerability and impact of underperforming borrowers.
Gladstone Capital (NASDAQ:GLAD ) Q1 2025 Earnings Conference Call February 12, 2025 8:30 AM ET Company Participants David Gladstone - CEO Michael LiCalsi - General Counsel and Secretary Bob Marcotte - President Nicole Schaltenbrand - CFO and Treasurer Conference Call Participants Mickey Schleien - Ladenburg Thalmann Robert Dodd - Raymond James Operator Greetings, and welcome to the Gladstone Capital Corporation First Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
Although the revenue and EPS for Gladstone Capital (GLAD) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Gladstone Capital (GLAD) came out with quarterly earnings of $0.50 per share, missing the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.54 per share a year ago.
MCLEAN, VA / ACCESSWIRE / January 14, 2025 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") announced today that its board of directors declared the following monthly cash distributions for January, February and March 2025 and also announced its plan to report earnings for its first fiscal quarter ended December 31, 2024. Cash Distributions: Common Stock: $0.165 per share of common stock for each of January, February and March 2025, payable per the table below.
Gladstone Capital focuses on providing alternative financing to US lower middle-market companies, with a portfolio heavily concentrated in debt investments. Despite recent interest rate cuts, GLAD's net investment income still covers its regular monthly dividend payments, though future cuts may challenge this coverage. GLAD typically trades at a premium to net asset value, aiding capital gathering, but economic and Fed-related uncertainties may lead to higher stock price volatility.
MCLEAN, VA / ACCESSWIRE / November 15, 2024 / Gladstone Capital Corporation (NASDAQ:GLAD) (the "Company") announced that Terry Lee Brubaker will be retiring as Chief Operating Officer of the Company effective December 2, 2024. Mr. Brubaker is also retiring as director and executive officer of Gladstone Management Corporation, the Company's investment adviser, and as a member of the board of managers and an executive officer of Gladstone Administration, LLC, the Company's administrator, also effective December 2, 2024.