One-glance verdict
Overvalued
$0.41 our estimate vs market $7.81
Wall Street consensus: $9.33 (2,154.1% higher than our fair-value estimate)
1786% above our estimate, beyond the bull case
Fundamentals snapshot
Gladstone Land Corporation
LAND · NGM · Real Estate · REIT - Specialty
Current price
$7.81
52-week range
$7.72 - $13.00
Market cap
$336.90M
Balance sheet
Stretched
1.23x Concerning
Net debt $458.88M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.2% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from 39.0% to -0.3% over 3 years.
- Risk Insider ownership is only 5.9% (peer median: 7.9%).
What this company does
Gladstone Land Corporation
Gladstone Land Corporation owns a lot of farmland and water rights across the United States, mostly renting it out to farmers who grow fresh fruits and vegetables. The money the company makes primarily comes from these rental payments, which is important because it allows them to consistently pay out cash to their investors every month. This steady income stream is a key feature of Gladstone Land's business model.
How the company got here
Gladstone Land Corporation was established in 1997 and went public in January 2013. It's a real estate investment trust (REIT), which means it owns income-producing real estate. The company's focus is on acquiring and owning farmland and related properties across the United States. Over the years, Gladstone Land has grown its portfolio to include a significant number of farms and water assets, primarily in key agricultural regions.
What it actually does
Gladstone Land owns farms and leases them to farmers. Think of them as a landlord for agricultural land. They own the dirt, the water rights, and the infrastructure, and then rent it out to people who grow crops. This allows the farmers to focus on farming without the large upfront cost of buying land. Gladstone Land then collects rent from these farmers, which helps them pay their own operating expenses and provide returns to their investors.
Farm Properties
This is the core of Gladstone Land's business. The company owns a large portfolio of farms, totaling approximately 98,000 acres spread across 14 states. These farms are used to grow a variety of crops, including annual produce like berries and vegetables, as well as permanent crops like almonds, blueberries, and grapes that are planted for many years. Gladstone Land generates revenue by leasing these farms to tenant farmers, who pay rent for the use of the land and its associated water rights.
Water Assets
In addition to farmland, Gladstone Land also owns significant water assets, particularly in California, where they hold nearly 56,000 acre-feet of water rights. Water is crucial for agriculture, and owning these rights provides a valuable resource for their tenant farmers and adds to the overall value of the company's real estate holdings. This segment of their business is tied directly to the agricultural properties they own, ensuring tenants have access to necessary resources for crop cultivation.
What management is betting on now
Gladstone Land's strategy revolves around acquiring more high-quality farmland and expanding its portfolio of water assets. They aim to grow by purchasing farms in prime agricultural locations and leasing them to a diverse range of tenants. A key priority is maintaining consistent monthly distributions to their stockholders, a practice they have upheld since their initial public offering. This focus on stable income generation and strategic property acquisition is central to their long-term plan.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$12.69M
Net income
$-8.46M
Diluted EPS
-0.32
Operating cash flow
$19.93M
Free cash flow
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Sources
Revenue
$16.55M
Net income
$-4.30M
Diluted EPS
-0.24
Operating cash flow
$9.29M
Free cash flow
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Sources
Revenue
$41.45M
Net income
$4.21M
Diluted EPS
-0.05
Operating cash flow
$10.61M
Free cash flow
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Revenue
$17.79M
Net income
$2.09M
Diluted EPS
-0.11
Operating cash flow
$-12.04M
Free cash flow
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Revenue
$12.30M
Net income
$-7.88M
Diluted EPS
-0.38
Operating cash flow
$3.95M
Free cash flow
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Revenue
$16.80M
Net income
$15.11M
Diluted EPS
0.25
Operating cash flow
$4.47M
Free cash flow
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Revenue
$21.10M
Net income
$540.00K
Diluted EPS
-0.15
Operating cash flow
$11.58M
Free cash flow
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Revenue
$22.57M
Net income
$6.00K
Diluted EPS
-0.16
Operating cash flow
$-1.37M
Free cash flow
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Is it cheap or expensive?
Fair value $0.41 vs current price $7.81
Wall Street consensus is the average analyst price target: $9.33 (2,154.1% higher than our fair-value estimate).
Our most-likely fair value is $0.41 a share — about 94.7% below today's price of $7.81, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $458.9M. Interest coverage 1.2x.
Net debt
$458.88M
Interest coverage
1.23x
Gladstone Land Corporation's profit covers its interest bill about 1.2 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
LAND
BASELINE
Gladstone Land Corporation
Total debt $486.76M Interest coverage 1.23x This is the baseline the peer rows are being compared against.
Total debt $224.31M Interest coverage 2.39x +95% vs LAND Carries about 2.0x more debt cushion than LAND.
Total debt $609.03M Interest coverage 6.83x +458% vs LAND Carries about 5.6x more debt cushion than LAND.
Total debt $4.66B Interest coverage 1.51x +23% vs LAND Carries about 1.2x more debt cushion than LAND.
Total debt $791.89M Interest coverage 1.61x +31% vs LAND Carries about 1.3x more debt cushion than LAND.
Total debt $858.75M Interest coverage 1.39x +14% vs LAND Has roughly the same debt cushion as LAND.
What you should know
The case for and against LAND
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.2% last year.
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 7.2% with 14-year payout history.
Risks
-
Operating margin compressed from 39.0% to -0.3% over 3 years.
-
Insider ownership is only 5.9% (peer median: 7.9%).
-
Return on equity was -1.0% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-25.61x
P/B
0.50x
P/S
3.81x
EV/EBITDA
11.89x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
71.7%
Operating margin
-0.3%
Net margin
-7.3%
ROE
-1.0%
ROA
1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.72x
Current ratio
1.66x
Quick ratio
1.34x
Total debt
$486.76M
Total cash
$27.87M
Growth
How the business has been compounding
Revenue TTM
$88.48M
Revenue 5Y CAGR
4.1%
EPS TTM
-0.72
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$27.80M
Free CF TTM
$-168.00K
FCF margin
-0.2%
Dividend
Shareholder payout
Yield
7.2%
Payout ratio
925.5%
Last ex-div date
2026-11-19