(GLAD) Gladstone Capital - Ratings and Ratios

Gladstone Capital Corporation (NASDAQ:GLAD) is a business development company (BDC) that focuses on investing in the lower middle market, providing both debt and equity financing to small and medium-sized businesses across various industries. The company offers a range of debt investments, including senior term loans, revolving loans, secured first and second lien term loans, senior subordinated loans, unitranche loans, and junior subordinated loans. Additionally, it makes equity investments in the form of common stock, preferred stock, limited liability company interests, and warrants. Gladstone Capital targets companies with annual sales between $20 million and $150 million and EBITDA ranging from $3 million to $25 million. The firm typically invests between $7 million and $30 million and prefers to acquire minority stakes in its portfolio companies.

Gladstone Capital operates across a diverse range of industries, including business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, healthcare and education services, specialty chemicals, media and communications, and aerospace and defense. The company’s investment strategies include growth capital, add-on acquisitions, change of control transactions, buy-and-build strategies, debt refinancing, and private equity investments in acquisitions, buyouts, and recapitalizations. Gladstone Capital aims to generate returns through a combination of interest income, fees, and capital appreciation. The firm seeks to exit its investments through strategic acquisitions, initial public offerings, or other capital market transactions.

Based on the provided data, here is a 3-month forecast for Gladstone Capital Corporation:

From a technical standpoint, GLAD is currently trading at $28.24, slightly below its 20-day SMA of $28.77 and 50-day SMA of $28.56. The stock’s 200-day SMA of $24.14 indicates a positive long-term trend. The Average True Range (ATR) of 0.64 suggests moderate volatility. Over the next three months, GLAD may face resistance at its recent highs around $29, with potential support near $27.50. If the stock breaks above $29, it could test higher levels, potentially reaching $30. Conversely, a drop below $27.50 might signal a pullback to $26.

Fundamentally, Gladstone Capital’s market cap of $642.88 million and P/E ratio of 6.20 suggest a relatively undervalued stock compared to its peers. The forward P/E of 14.58 indicates expectations of future growth. The P/B ratio of 1.34 reflects a modest premium to book value, while the P/S ratio of 6.74 highlights the company’s revenue generation capabilities. With a return on equity (RoE) of 20.77%, Gladstone Capital demonstrates strong profitability. Over the next quarter, the company’s ability to maintain its dividend yield and continue its investment strategy will be key drivers of its performance.

Category: Ticker Symbol: GLAD, Exchange: NASDAQ, Type: common stock, Country Origin: United States, GICS Sub Industry: Asset Management & Custody Banks.

Technical Data: Average Volume 20d: 102,419, Last Price: $28.24, SMA 20: $28.77, SMA 50: $28.56, SMA 200: $24.14, ATR: $0.64.

Fundamental Data: Market Cap: $642.88M USD, P/E: 6.20, P/E Forward: 14.58, P/B: 1.34, P/S: 6.74, RoE: 20.77.