Gladstone Commercial (FRA:GLE) Financial Strength: 2 (As of Jun. 2026) — 33% Below Median

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FRA:GLE Gladstone Commercial Corp FRA:GLE
70 GF Score
Price €11.05
GF Value €11.50
Valuation Fairly Valued
! 9 Warning Signs
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What is Gladstone Commercial Financial Strength?

Gladstone Commercial FRA:GLE 70 Financial Strength is 2 as of Jun. 2026, which is 33% below its 10-year median of 3.00. GuruFocus rates FRA:GLE with a GF Score™ of 70/100 and a GF Value™ of €11.50 (Fairly Valued). The stock has 9 warning signs investors should review.

Gladstone Commercial has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Gladstone Commercial Corp displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Gladstone Commercial's Interest Coverage for the quarter that ended in Jun. 2026 was 1.56. Gladstone Commercial's debt to revenue ratio for the quarter that ended in Jun. 2026 was 4.88. As of today, Gladstone Commercial's Altman Z-Score is -0.18.


Gladstone Commercial  (FRA:GLE) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Gladstone Commercial has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Gladstone Commercial Financial Strength Related Terms


FRA:GLE vs JBGS, OLP, AHRT: Financial Strength Comparison

For the REIT - Diversified subindustry, Gladstone Commercial's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Gladstone Commercial Financial Strength vs REITs Industry

For the REITs industry and Real Estate sector, Gladstone Commercial's Financial Strength distribution charts can be found below:

* The bar in red indicates where Gladstone Commercial's Financial Strength falls into.


FRA:GLE
70GF Score
Gladstone Commercial Corp FRA:GLE
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Gladstone Commercial Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Gladstone Commercial's Interest Expense for the months ended in Jun. 2026 was €-9.9 Mil. Its Operating Income for the months ended in Jun. 2026 was €15.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €700.6 Mil.

Gladstone Commercial's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*15.39/-9.893
=1.56

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Gladstone Commercial Corp interest coverage is 1.42, which is low.

2. Debt to revenue ratio. The lower, the better.

Gladstone Commercial's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(44.763 + 700.602) / 152.728
=4.88

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Gladstone Commercial has a Z-score of -0.18, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.18 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 2 mean?
Gladstone Commercial (FRA:GLE) has a Financial Strength of 2 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Gladstone Commercial and its competitors. This is 33% below median its historical median of 3.00. Over the past decade, Gladstone Commercial's Financial Strength has ranged from 2.00 to 4.00.
Is Gladstone Commercial's Financial Strength too high?
Gladstone Commercial's current Financial Strength of 2 is 33% below median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 4.00. Overall, Gladstone Commercial has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gladstone Commercial's Financial Strength compare to JBGS and OLP?
Gladstone Commercial's Financial Strength of 2 can be compared against companies in the REITs industry. Historically, Gladstone Commercial's own Financial Strength has ranged from 2.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a REITs company?
A good Financial Strength depends on the REITs industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Gladstone Commercial and its competitors. Gladstone Commercial's current Financial Strength is 2, which is 33% below median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gladstone Commercial stock overvalued right now?
Based on GuruFocus' analysis, Gladstone Commercial (FRA:GLE) is currently considered Fairly Valued. The stock's GF Value™ is €11.50, compared to a current price of €11.05 — trading 3.9% below its estimated fair value. The current Financial Strength is 2, which is 33% below median its 10-year median of 3.00. Gladstone Commercial's overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Gladstone Commercial (FRA:GLE), the current Financial Strength is 2 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Gladstone Commercial (FRA:GLE) Overvalued in 2026?

Based on GuruFocus' analysis, Gladstone Commercial stock appears to be undervalued. The current stock price of €11.05 is trading 3.9% below its estimated GF Value™ of €11.50. GuruFocus considers Gladstone Commercial to be Fairly Valued.

Key valuation signals for FRA:GLE:

  • Financial Strength: 2 (33% below median its 10-year median of 3.00)
  • GF Value™: €11.50 vs. price of €11.05 (3.9% below fair value)
  • GF Score™: 70/100 with 9 warning signs

No single metric tells the full story. See the FRA:GLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Gladstone Commercial Business Description

Industry Real EstateREITs
Address 1521 Westbranch Drive, Suite 100, McLean, VA, USA, 22102
Gladstone Commercial Corp is a real estate investment trust, which engages in investing and owning net leased industrial, commercial, and retail real property and making long-term industrial and commercial mortgage loans. Its portfolio consists of single-tenant commercial, industrial real properties, and medical properties nationwide. Its principal investment objectives are to generate income from rental properties.
70GF Score

Get the complete analysis for FRA:GLE

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€11.05
Price
€11.50
GF Value