Gladstone Capital Corporation Common Stock (GLAD)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $30 million in annual free cash flow (7.1% yield on market cap)
• Attractive 9.8% dividend yield providing steady income returns

Concerns

• Revenue declining at 75.3% year-over-year signals potential demand weakness or market share loss
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Gladstone Capital Corporation Common Stock is a micro-cap financial services company valued at $417 million. The business generates $92 million in annual revenue with a 5.9% net margin and $30 million in free cash flow. From a quality standpoint, Gladstone shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is attractively valued at 11.6x earnings, with offers a 33% margin of safety vs Graham Number of $27. Growth dynamics show revenue growing at -75.3% and profit growth of -78.2%. The 9.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $30 million in annual free cash flow (7.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer