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Gladstone InvestmentSTU:1G3 +2.71%64 ROE % is 52.47% as of Mar. 2026, which is 211% above its 10-year median of 16.87. GuruFocus rates STU:1G3 with a GF Score™ of 64/100 and a GF Value™ of €24.60 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,611 Asset Management companies, Gladstone Investment ranks better than 91.31% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Asset Management subindustry, Gladstone Investment's ROE %, along with its competitors' market caps and ROE % 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 Investment ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Gladstone Investment's ROE % distribution charts can be found below:
* The bar in red indicates where Gladstone Investment's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Gladstone Investment (STU:1G3) has a ROE % of 52.47% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gladstone Investment and its competitors. This is 211% above median its historical median of 16.87. According to the industry distribution chart, Gladstone Investment ranks #140 out of 1611 companies in the Asset Management industry, placing it in the top 8.7%.
Is Gladstone Investment's ROE % too high?
Gladstone Investment's current ROE % of 52.47% is 211% above median its 10-year median of 16.87. The Asset Management industry median ROE % is 6.86. Gladstone Investment's value of 52.47% is 664.9% above this industry median. Based on the distribution chart, Gladstone Investment ranks #140 out of 1611 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Gladstone Investment has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gladstone Investment's ROE % compare to PDT and MUJ?
According to the Asset Management industry distribution chart, Gladstone Investment ranks #140 out of 1611 companies for ROE %. This places Gladstone Investment in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 6.86. Gladstone Investment's value of 52.47% is 664.9% above this benchmark. While the company's 10-year median is 16.87 vs. the industry median of 6.86, Gladstone Investment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.86, based on 1,611 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gladstone Investment's current ROE % of 52.47% is 664.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gladstone Investment and its competitors. For the Asset Management industry, the median ROE % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gladstone Investment's current ROE % is 52.47%, which is 211% above median its own 10-year median of 16.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gladstone Investment stock overvalued right now?
Based on GuruFocus' analysis, Gladstone Investment (STU:1G3) is currently considered Possible Value Trap. The stock's GF Value™ is €24.60, compared to a current price of €14.61 — trading 40.6% below its estimated fair value. The current ROE % is 52.47%, which is 211% above median its 10-year median of 16.87 and 664.9% above the Asset Management industry median of 6.86. Gladstone Investment's overall GF Score™ is 64/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Gladstone Investment (STU:1G3), the current ROE % is 52.47% as of Mar. 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 Investment (STU:1G3) Overvalued in 2026?
Based on GuruFocus' analysis, Gladstone Investment stock appears to be undervalued.
The current stock price of €14.61 is trading 40.6% below its estimated GF Value™ of €24.60.
GuruFocus considers Gladstone Investment to be Possible Value Trap.
Key valuation signals for STU:1G3:
ROE %: 52.47% (211% above median its 10-year median of 16.87)
GF Value™: €24.60 vs. price of €14.61 (40.6% below fair value)
Industry Position: 664.9% above the Asset Management median (#140 of 1611)
No single metric tells the full story. See the STU:1G3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gladstone Investment Corp operates as an externally managed, closed-end, non-diversified management investment company. Its objective is to invest in debt and equity securities of established private businesses operating in the U.S., to achieve and grow current income by investing in debt securities of established businesses, and to provide stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses. It focuses on investing in lower-middle-market private businesses.
64GF Score
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