Gladstone Capital Corporation Common Stock (GLAD)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Gladstone Capital as a Graham-style asset play, not a compounder. It is a business development company lending to lower middle market businesses, with loans and some equity. At the close on 2026-10-13, the price was $19.01, while FairStock calculates P/B at 0.88, P/E at 8.92, and a Graham Number of $32.10, implying a 40.78% margin of safety. The dividend yield is 9.33%, and beta is 0.93. Those numbers are attractive if the asset value is real. But I see no wide moat: this is a spread business dependent on credit selection, funding costs, and capital markets. Filed net income has been uneven: $5.5M in fiscal Q1 2026 (quarter ended 2025-12-31), $15.5M in fiscal Q2 2026 (quarter ended 2026-03-31), and $13.3M in fiscal Q3 2026 (quarter ended 2026-06-30). FY2025 net income was $57.2M, down from $94.5M in FY2024, though above $42.7M in FY2023. Financial health scores give me pause. FairStock's Piotroski F-Score is 2/9, Altman Z-Score is 0.52, D/E is 0.81, ROE is 9.45%, and ROCE is 5.17%. TTM free cash flow is -$150.8M, a -35.1% FCF yield. For an investment company, portfolio purchases can drive negative cash flow, but it still demands scrutiny. The low P/B and high yield could compensate investors if credit holds and net income normalizes. If credit deteriorates, book value and the dividend could be at risk. I would watch filed net income, book value, leverage, and portfolio credit quality rather than rely on the high yield alone.

In plain English: Gladstone Capital is a financial company that lends money to and invests in smaller private businesses. It earns interest and investment income, and it pays shareholders a large dividend. The latest filed profit numbers have been uneven, and the shares trade below their accounting book value; the price looks cheap compared with several provided measures, but the company uses debt and has negative cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer