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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3702
Positioning
Market Dominance
Financial
Financial Services
$463M
David J. Gladstone
Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies. The fund also makes private equity investments in acquisitions, buyouts and recapitalizations, and refinancing existing debts. It targets small and medium-sized companies in United States.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = GLAD ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$GBDC GOLUB CAPITAL BDC, Inc. | 64 | 91 | 89 | 57 | 22.5x | 6.6x | 5.7% | 1.7% | 100.0% | 64.3% | 25.4% | 116.4% | 12.6% | 128.0x | $3.7B | VS | |
$SAR SARATOGA INVESTMENT CORP. | 55 | 30 | 69 | 85 | 1.4x | 2.3x | 43.6% | 22.2% | - | - | 182.5% | -10.7% | 17.0% | 263.0x | $362M | VS | |
$CGBD Carlyle Secured Lending, Inc. | 53 | 72 | 67 | 40 | 14.2x | 6.1x | 6.8% | 2.0% | 100.0% | 73.2% | 24.8% | 18.0% | 13.6% | 111.0x | $911M | VS | |
$BBDC Barings BDC, Inc. | 53 | 25 | 31 | 79 | 23.4x | 10.1x | 9.8% | - | - | - | - | -103.3% | 13.6% | 139.0x | $921M | VS | |
$SLRC SLR Investment Corp. | 52 | 33 | 47 | 75 | 8.9x | 8.7x | 9.2% | 3.6% | - | - | 60.5% | 3.7% | 10.7% | 115.0x | $834M | VS | |
$TRIN Trinity Capital Inc. | 51 | 26 | 29 | 90 | 9.8x | 52.5x | 14.6% | 9.6% | - | - | 49.8% | 16.0% | 13.2% | 118.0x | $1.1B | VS | |
$CSWC CAPITAL SOUTHWEST CORP | 51 | 29 | 36 | 93 | 9.6x | 10.0x | 14.5% | 6.2% | - | - | 53.5% | 18.2% | 11.7% | 108.0x | $1.3B | VS | |
$ICMB Investcorp Credit Management BDC, Inc. | 50 | 26 | 26 | 86 | - | - | -22.2% | - | - | - | -49.4% | -76.3% | 23.4% | 177.0x | $38M | VS | |
$FDUS FIDUS INVESTMENT Corp | 50 | 31 | 41 | 64 | 9.4x | 10.4x | 11.3% | 6.3% | - | - | 48.5% | 17.9% | 11.2% | 75.0x | $717M | VS | |
$GAIN GLADSTONE INVESTMENT CORPORATION\DE | 49 | 30 | 27 | 90 | - | - | 9.5% | 23.6% | - | - | 423.3% | 3.9% | 10.8% | 96.0x | $551M | VS | |
$GLAD GLADSTONE CAPITAL CORP | 39 | 37 | 51 | 25 | 8.5x | 8.5x | 10.2% | 5.3% | - | 108.2% | 108.2% | -9.1% | 9.9% | 87.0x | $463M | ||
| SECTOR BENCH | - | - | - | - | - | 9.8x | 9.5x | 6.8% | 3.5% | 100.0% | 54.7% | 49.2% | -14.5% | 13.3% | 1.2x | - | REF |
GLADSTONE CAPITAL CORP (GLAD) receives a "Avoid" rating with a composite score of 38.7/100. It ranks #3702 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Financial sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for GLAD.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 37 | 86 | -49DRAG |
| MOMENTUM | 25 | 16 | +9ALPHA |
| VALUATION | 51 | 78 | -27DRAG |
| INVESTMENT | 33 | 57 | -24DRAG |
| STABILITY | 30 | 19 | +11ALPHA |
| SHORT INT | 54 | 54 | 0NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 2.3% vs WACC 7.4% (spread -5.2%)
GM N/A vs sector 100%, OM 108% vs sector 55%
Capital turnover 0.06x
Rev growth -9%, 3yr history
Interest coverage 0.9x, Net debt/EBITDA 34.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate GLADSTONE CAPITAL CORP (GLAD) as Avoid with a composite score of 38.7/100 at a current price of $18.20. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
GLADSTONE CAPITAL CORP holds a mid-tier position (#27 of 38) within the Financial sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 38.7/100 places it at rank #3702 in our full universe.
No Moat
Medium
Standard
Fair Value
Stable competitive position in a defensive sector.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
GLADSTONE CAPITAL CORP represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags GLADSTONE CAPITAL CORP with an Avoid rating, assigning a composite score of 38.7/100 and 1 out of 5 stars. Ranked #3702 of 7,333 stocks, GLAD falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
GLAD's quality score of 37/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 10.2% (sector avg: 6.8%), net margins of 108.2% (sector avg: 49.2%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
GLAD's value score of 51/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 8.54x, an EV/EBITDA of 8.54x, a P/B ratio of 0.87x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
GLADSTONE CAPITAL CORP's investment score of 33/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -9.1% vs. a sector average of -14.5% and a return on assets of 5.3% (sector: 3.5%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
GLADSTONE CAPITAL CORP is experiencing notably weak momentum with a score of just 25/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at -9.1% year-over-year, while a beta of 0.76 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
GLAD's stability score of 30/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 0.76 and a debt-to-equity ratio of 87.00x (sector avg: 1.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 54/100 for GLAD suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 87.00x), small-cap liquidity risk. With a $463M market cap (small-cap), GLADSTONE CAPITAL CORP may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
GLADSTONE CAPITAL CORP offers an attractive dividend yield of 9.9%, placing it among the higher-yielding stocks in its peer group. This compares to a sector average dividend yield of 13.3%. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
GLADSTONE CAPITAL CORP is a small-cap company in the Financial sector, ranked #27 of 38 in its sector (29th percentile) and #3702 of 7,333 overall (50th percentile). Key comparisons include ROE of 10.2% exceeding the 6.8% sector median and operating margins of 108.2% above the 54.7% sector average. This below-median ranking suggests GLAD faces competitive challenges relative to stronger Financial peers.
While GLAD currently exhibits a AVOID profile, superior opportunities exist within the FINANCIAL sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Momentum (25) would have the largest impact on the composite score.
RANK #27 OF 38 IN FINANCIALS
EV/EBITDA 10% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 50% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 98% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
Gladstone Capital Corporation (Nasdaq:GLAD) has announced its intention to redeem all outstanding 5.125% Notes due 2026 on October 31, 2025, and all outstanding 7.75% Notes due 2028 on October 15, 2025. The redemption prices will be 100% of the aggregate principal amount plus accrued and unpaid interest to the redemption date for both note series. The 2028 Notes will be delisted from the Nasdaq Global Select Market following their redemption.
Gladstone Capital (GLAD) was downgraded to Hold from Buy at Jefferies after the business development company reported in-line fiscal first-quarter financial results.
Gladstone Capital Corporation (NASDAQ:GLAD) has received an average "Hold" recommendation from brokerages, with three firms rating it a hold and two a buy, and a consensus 12-month price target of $22.00. The company recently declared a monthly dividend of $0.15, implying an 8.8% annualized yield, and reported Q4 earnings that beat analyst estimates. GLAD's stock is currently trading around $20.44, with its price-to-earnings ratio at 7.98 and a market cap of $461.74 million.
Short interest in Gladstone Capital Corporation (NASDAQ:GLAD) rose by 22.4% in January, reaching 451,393 shares as of January 15th, representing approximately 2.1% of outstanding shares and a days-to-cover ratio of 2.7 days. The company recently declared a monthly dividend of $0.15 per share (ex-dividend March 23) which translates to an annualized yield of about 9.0% and a payout ratio of 70.31%. Gladstone Capital currently holds a "Hold" consensus rating from analysts with an average price target of $22.00.
Trexquant Investment LP significantly reduced its stake in Gladstone Capital (NASDAQ:GLAD) by 43.1%, now holding 26,166 shares valued at $719,000. Despite meeting EPS expectations of $0.50, the company's revenue of $21.66 million missed analyst estimates. Gladstone Capital recently declared a monthly dividend of $0.165 per share, offering an annualized yield of 7.6%.