📊 GLAD Key Takeaways
Is GLAD a Good Investment? Thesis Analysis
Gladstone Capital Corp shows severely distressed fundamentals with negative operating cash flow of -$33.8M against only $2.9M in cash reserves, creating acute liquidity risk. Profitability metrics are critically weak (ROA 0.6%, ROE 1.1%) with declining EPS despite flat net income, indicating deteriorating shareholder value creation.
Fundamentals show flat profitability (net income $5.45M, EPS down 4.1% YoY) and very weak returns on capital (ROE 1.1%, ROA 0.6%), alongside negative operating cash flow. While leverage is moderate at 0.42x and equity is sizable, limited cash and unclear interest coverage raise liquidity and earnings-quality concerns.
Why Buy GLAD? Key Strengths
- Moderate leverage at 0.42x debt/equity ratio avoiding overleveraging
- Substantial asset base of $922.8M providing structural scale
- Manageable debt burden of $199.5M relative to equity cushion
- Positive net income despite flat growth
- Moderate leverage (Debt/Equity 0.42x) with sizable equity base
- Large asset base ($922.81M) to support income generation
GLAD Investment Risks to Consider
- Severe negative operating cash flow of -$33.8M creating solvency concerns
- Critical liquidity position with only $2.9M cash against substantial burn rate
- Abysmal profitability returns (0.6% ROA, 1.1% ROE) destroying shareholder capital
- Declining diluted EPS (-4.1% YoY) despite flat earnings
- Very low ROE/ROA indicating inefficient capital deployment
- Negative operating cash flow and minimal cash balance
- Interest coverage and margin profile unclear due to missing operating data
Key Metrics to Watch
- Operating cash flow trajectory - must reverse to positive
- Cash position and runway relative to monthly burn rate
- ROA and ROE improvement trends
- Ability to service debt and maintain liquidity covenants
- Operating cash flow
- ROE
GLAD Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GLAD Profitability Ratios
GLAD vs Default Sector
How GLADSTONE CAPITAL CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GLAD Overvalued or Undervalued?
Based on fundamental analysis, GLADSTONE CAPITAL CORP has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GLAD Balance Sheet & Liquidity
GLAD 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: GLADSTONE CAPITAL CORP's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.88 reflects profitable operations.
GLAD Growth Metrics (YoY)
GLAD Capital Allocation
GLAD SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for GLADSTONE CAPITAL CORP (CIK: 0001143513)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GLAD
What is the AI rating for GLAD?
GLADSTONE CAPITAL CORP (GLAD) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GLAD's key strengths?
Claude: Moderate leverage at 0.42x debt/equity ratio avoiding overleveraging. Substantial asset base of $922.8M providing structural scale. ChatGPT: Positive net income despite flat growth. Moderate leverage (Debt/Equity 0.42x) with sizable equity base.
What are the risks of investing in GLAD?
Claude: Severe negative operating cash flow of -$33.8M creating solvency concerns. Critical liquidity position with only $2.9M cash against substantial burn rate. ChatGPT: Very low ROE/ROA indicating inefficient capital deployment. Negative operating cash flow and minimal cash balance.
What is GLAD's revenue and growth?
GLADSTONE CAPITAL CORP reported revenue of N/A.
Does GLAD pay dividends?
GLADSTONE CAPITAL CORP pays dividends, with $10.2M distributed to shareholders in the trailing twelve months.
Where can I find GLAD SEC filings?
Official SEC filings for GLADSTONE CAPITAL CORP (CIK: 0001143513) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GLAD's EPS?
GLADSTONE CAPITAL CORP has a diluted EPS of $1.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GLAD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, GLADSTONE CAPITAL CORP has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GLAD stock overvalued or undervalued?
Valuation metrics for GLAD: ROE of 1.1% (sector avg: 15%), net margin of N/A (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GLAD stock in 2026?
Our dual AI analysis gives GLADSTONE CAPITAL CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GLAD's free cash flow?
GLADSTONE CAPITAL CORP's operating cash flow is $-33.8M, with capital expenditures of N/A.
How does GLAD compare to other Default stocks?
Vs Default sector averages: Net margin N/A (avg: 12%), ROE 1.1% (avg: 15%), current ratio N/A (avg: 1.8).