Gladstone Capital (NASDAQ: GLAD) shares currently have a dividend yield of 8.40%. Gladstone Capital Corporation is a business development company specializing in investments in debt and equity securities. The company has a P/E ratio of 6.50. The average volume for Gladstone Capital has been 129,900 shares per day over the past 30 days. Gladstone Capital has a market cap of $209.0 million and is part of the financial services industry. Shares are up 4.8% year-to-date as of the close of trading on Wednesday. TheStreet Ratings rates Gladstone Capital as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, attractive valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 424.6% when compared to the same quarter one year prior, rising from $5.47 million to $28.68 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, GLADSTONE CAPITAL CORP's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for GLADSTONE CAPITAL CORP is rather high; currently it is at 69.23%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 306.61% significantly outperformed against the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Gladstone Capital Ratings Report.
- Our dividend calendar.
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