* Note: Prices are in Million (M) USD.
Description:
Gladstone Land Corporation (LAND) is a publicly traded real estate investment trust (REIT) established in 1997, specializing in the acquisition and ownership of high-quality agricultural land across key U.S. agricultural markets. The company strategically leases its properties to independent farmers, providing them with reliable rental income while generating stable cash flows for its investors. By focusing on prime farmland and agricultural properties, Gladstone Land capitalizes on the growing demand for sustainable food production and land resources, positioning itself as a leader in the agricultural real estate sector. With a strong management team and a commitment to enhancing shareholder value, Gladstone Land continues to offer institutional investors an attractive opportunity in the agriculture-focused real estate market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $30 M
Debt : $496 M
EBITDA : $63 M
Net Debt (Debt - Cash): $466 M
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - specialty
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 15 overlapping fiscal years (max 20).Average Free Cash Flow: $7 M
Average Revenue: $37 M
Revenue Converted To Free Cash Flow (%): 20.3%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $85 M
Revenue 5 Years Ago (2019-12-31): $41 M
Total Growth over 5 Years: 109.4%
5-Year Revenue CAGR (Historical): 15.9%
Forward 5-Year CAGR (Tapered): 11.2%
Since historical Revenue CAGR is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $36 M
Share Count 5 Years Ago (2020-12-31): $22 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.50
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $1
Payout Ratio: 0%
Dividend Yield: 6%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.50
EPS is non-positive; payout ratio not meaningful. 0 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 15 valid ROE years (max 20).Average ROE: 1.4%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $9.29
52-Week Low: $8.38
Threshold Price (15% Above 52-Week Low): $9.64
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $335 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $0.31
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $0.68
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 24 points to above Gladstone Land Corporation (LAND) stock.
Fair Value PE 15, Industry Based PE 20, Growth Based PE 15, RCFC Based PE 20.35, ROE Based PE 1.41, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 6 values, average assigned is 14.99. The fair value of Gladstone Land Corporation (LAND) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
