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Gladstone Investment

GAIN
45
Asset Management · Financial Services
Exchange
NASDAQ
Winston Score
45
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Good
Cash Flow
Weak
Stability
Good
Valuation
Good
Dividends
Good

Winston Score History

The full picture

Gladstone Investment Corp. is a publicly traded investment company that lends money to and buys ownership stakes in small and medium-sized private businesses across the United States. It focuses on companies in industries like manufacturing, services, and consumer products, typically targeting businesses that are being bought out by their management teams or private equity firms. It is part of the Gladstone Companies family of funds, which manages several similar investment vehicles.

The company makes money by collecting interest on loans it makes to portfolio companies and by earning returns when it sells its ownership stakes, often at a profit. It operates as a Business Development Company (BDC), which means it is required by law to pay out most of its income to shareholders as dividends — making it popular with income-focused investors. Its main risk is that small private companies are more likely to struggle during economic downturns, which could lead to loan defaults or losses on its investments.

Score breakdown

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Quality

Profit per sale
Gross Margin
98.3%
Premium pricing power — 98.3% gross margin
Profit after running costs
Operating Margin
-5.3%
Losing money on operations — -5.3%
Return on the money invested
ROCE
9.4%
Below par — 9.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-8.3%
Shrinking sales (-8.3% YoY)
Profit growth
EPS YoY
+92.6%
Earnings growing fast (+92.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
-62%
Weak — only -62% of profit becomes cash
Spare cash per sale
FCF Margin
-96.2%
Burning cash (-96.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.88
Moderate — manageable debt (0.88)
Covers its interest
Interest Cover
2.81x
Tight — interest eats into profit (2.8x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
3.9x
no trend
Attractive valuation — P/E 3.9

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-14.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
5.93%
no trend
Healthy income — 5.93% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
+0.0%
no trend
Dividend flat

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