MeritValue

GLADSTONE CAPITAL CORP

GLADdata completeness 63%5 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'totalDebt'; no data for concept 'interestExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

GLADSTONE CAPITAL CORP earns about 15% on equity, and has bought back 32% of its shares over 5 years. The applicable estimate puts fair value near $26.15 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$84.3M1$19.9M2$42.7M3$94.5M3$57.2M3
Operating cash flow−$14.1M4−$76.4M5−$10.9M6$3.24M6−$5.49M6
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$846,0007$2.01M8$1.31M9$2.17M9$32.4M10
Diluted shares33.2M17.2M18.7M21.8M22.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$212.7
your share of equity
Profit it earned you last year
$25.24
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $212.7 of net worth that earned you $25.24 last year.

iii. Is this a good business?
Moat signal · return on equity
15% avg · 5y
FY21 26%FY22 6%FY23 10%FY24 20%FY25 12%

It earned an average 15% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−32% shares · 5y

Share count is down 32% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$26.15
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$57.2M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-09-30 · accession 0001143513-23-000013 (NetIncomeLoss)
  2. 10-K · period ending 2022-09-30 · accession 0001143513-24-000011 (NetIncomeLoss)
  3. 10-K · period ending 2023-09-30 · accession 0001143513-25-000015 (NetIncomeLoss)
  4. 10-K · period ending 2021-09-30 · accession 0001143513-23-000013 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-09-30 · accession 0001143513-24-000011 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-09-30 · accession 0001143513-25-000015 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-09-30 · accession 0001143513-24-000011 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  8. 10-K · period ending 2022-09-30 · accession 0001143513-23-000013 (CashAndCashEquivalentsAtCarryingValue)
  9. 10-K · period ending 2023-09-30 · accession 0001143513-24-000011 (CashAndCashEquivalentsAtCarryingValue)
  10. 10-K · period ending 2025-09-30 · accession 0001143513-25-000015 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)