G8 Education
Market Cap
AU$665.2m
Last Updated
2020/08/05 10:44 UTC
Data Sources
Company Financials +
Executive Summary
G8 Education Limited owns, operates, franchises, and manages child care centers.
Snowflake Analysis
Very undervalued established dividend payer.
Similar Companies
Share Price & News
How has G8 Education's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GEM's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.1%
GEM
-3.3%
AU Consumer Services
0.2%
AU Market
1 Year Return
-70.4%
GEM
-37.5%
AU Consumer Services
-6.6%
AU Market
Return vs Industry: GEM underperformed the Australian Consumer Services industry which returned -40.3% over the past year.
Return vs Market: GEM underperformed the Australian Market which returned -11% over the past year.
Shareholder returns
| GEM | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.1% | -3.3% | 0.2% |
| 30 Day | -8.1% | -14.8% | 0.3% |
| 90 Day | -9.2% | -8.7% | 13.7% |
| 1 Year | -65.9%-70.4% | -34.7%-37.5% | -2.8%-6.6% |
| 3 Year | -73.4%-79.0% | -17.8%-27.9% | 18.6%2.9% |
| 5 Year | -63.4%-74.8% | -46.5%-57.6% | 36.9%7.3% |
Price Volatility Vs. Market
How volatile is G8 Education's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
An Intrinsic Calculation For G8 Education Limited (ASX:GEM) Suggests It's 24% Undervalued1 month ago | Simply Wall St
Do You Know What G8 Education Limited's (ASX:GEM) P/E Ratio Means?2 months ago | Simply Wall St
Those Who Purchased G8 Education (ASX:GEM) Shares Five Years Ago Have A 73% Loss To Show For ItValuation
Is G8 Education undervalued compared to its fair value and its price relative to the market?
47.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GEM (A$0.8) is trading below our estimate of fair value (A$1.48)
Significantly Below Fair Value: GEM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GEM is good value based on its PE Ratio (5.8x) compared to the AU Consumer Services industry average (14.4x).
PE vs Market: GEM is good value based on its PE Ratio (5.8x) compared to the Australian market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: GEM is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: GEM is good value based on its PB Ratio (0.4x) compared to the AU Consumer Services industry average (1.1x).
Next Steps
Future Growth
How is G8 Education forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
12.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GEM's forecast earnings growth (12.8% per year) is above the savings rate (2.3%).
Earnings vs Market: GEM's earnings (12.8% per year) are forecast to grow slower than the Australian market (14.7% per year).
High Growth Earnings: GEM's earnings are forecast to grow, but not significantly.
Revenue vs Market: GEM's revenue (4.5% per year) is forecast to grow faster than the Australian market (4.1% per year).
High Growth Revenue: GEM's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GEM's Return on Equity is forecast to be low in 3 years time (6.5%).
Next Steps
Past Performance
How has G8 Education performed over the past 5 years?
-0.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GEM has high quality earnings.
Growing Profit Margin: GEM's current net profit margins (6.8%) are lower than last year (8.4%).
Past Earnings Growth Analysis
Earnings Trend: GEM's earnings have declined by 0.8% per year over the past 5 years.
Accelerating Growth: GEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GEM had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Consumer Services industry average (-1.1%).
Return on Equity
High ROE: GEM's Return on Equity (7.5%) is considered low.
Next Steps
Financial Health
How is G8 Education's financial position?
Financial Position Analysis
Short Term Liabilities: GEM's short term assets (A$83.7M) do not cover its short term liabilities (A$164.7M).
Long Term Liabilities: GEM's short term assets (A$83.7M) do not cover its long term liabilities (A$1.0B).
Debt to Equity History and Analysis
Debt Level: GEM's debt to equity ratio (46.2%) is considered high.
Reducing Debt: GEM's debt to equity ratio has increased from 39.5% to 46.2% over the past 5 years.
Debt Coverage: GEM's debt is well covered by operating cash flow (39.7%).
Interest Coverage: GEM's interest payments on its debt are not well covered by EBIT (2.1x coverage).
Balance Sheet
Next Steps
Dividend
What is G8 Education current dividend yield, its reliability and sustainability?
13.61%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GEM's dividend (13.52%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).
High Dividend: GEM's dividend (13.52%) is in the top 25% of dividend payers in the Australian market (6.68%)
Stability and Growth of Payments
Stable Dividend: GEM's dividend payments have been volatile in the past 10 years.
Growing Dividend: GEM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (78.7%), GEM's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GEM's dividends in 3 years are forecast to be covered by earnings (73.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Gary Carroll
3.58yrs
Tenure
AU$762,371
Compensation
Mr. Gary G. Carroll, B.Comm (Hons), B.Law (Hons), CPA, has been Chief Executive Officer, Managing Director and Executive Director of G8 Education Limited since January 1, 2017. Mr. Carroll is responsible f ...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD541.65K) is below average for companies of similar size in the Australian market ($USD776.44K).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 3.58yrs | AU$762.37k | 0.021% A$ 138.8k | |
| Chief Financial Officer | 3.5yrs | AU$438.84k | 0.0042% A$ 27.8k | |
| General Manager of Operations | 3.17yrs | AU$447.02k | no data | |
| Chief Information Officer | no data | no data | no data | |
| General Counsel & Company Secretary | 2.25yrs | no data | no data | |
| General Manager of Safety | 2.08yrs | no data | no data | |
| General Manager of Marketing | 2.75yrs | no data | no data | |
| General Manager of Human Resources | no data | no data | no data |
3.0yrs
Average Tenure
Experienced Management: GEM's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 3.58yrs | AU$762.37k | 0.021% A$ 138.8k | |
| Independent Non Executive Director | 4.5yrs | AU$165.00k | 0.0054% A$ 35.8k | |
| Independent Non-Executive Director | 0.25yr | no data | 0.0024% A$ 15.9k | |
| Independent Non-Executive Director | 8.75yrs | AU$165.00k | 0.0062% A$ 41.3k | |
| Independent Non-Executive Chairman | 4.58yrs | AU$284.98k | 0.011% A$ 75.5k | |
| Independent Non-Executive Director | 2.92yrs | AU$140.00k | 0.0035% A$ 23.1k | |
| Independent Non-Executive Director | 2.92yrs | AU$140.00k | 0.0039% A$ 26.2k |
3.6yrs
Average Tenure
52yo
Average Age
Experienced Board: GEM's board of directors are considered experienced (3.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GEM insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 82.5%.
Top Shareholders
Company Information
G8 Education Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: G8 Education Limited
- Ticker: GEM
- Exchange: ASX
- Founded: 2006
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: AU$665.173m
- Shares outstanding: 836.70m
- Website: https://www.g8education.edu.au
Number of Employees
Location
- G8 Education Limited
- 159 Varsity Parade
- Varsity Lakes
- Queensland
- 4227
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GEM | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Mar 2010 |
| GEM | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Mar 2010 |
| 3EAG | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Mar 2010 |
Biography
G8 Education Limited owns, operates, franchises, and manages child care centers. The company provides educational child care services. It operates 492 centers in Australia and Singapore. The company was fo ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/05 10:44 |
| End of Day Share Price | 2020/08/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.