G8 Education
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G8 Education Limited owns, operates, franchises, and manages child care centers. The last earnings update was 120 days ago. More info.
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GEM Share Price and Events
7 Day Returns
1 Year Returns
GEM Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| G8 Education (GEM) | 0.7% | -3% | 2.1% | 26.1% | -20.5% | -35.9% |
| AU Consumer Services | 0.5% | 4% | 13.4% | 33.1% | 11% | -15.1% |
| AU Market | 1.6% | 3.2% | 8.3% | 5.3% | 28.1% | 13.8% |
1 Year Return vs Industry and Market
- GEM underperformed the Consumer Services industry which returned 33.1% over the past year.
- GEM outperformed the Market in Australia which returned 5.3% over the past year.
Value
Is G8 Education undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
G8 Education
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for G8 Education.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 12 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.9% |
| Perpetual Growth Rate | 10-Year AU Government Bond Rate | 2.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year AU Govt Bond Rate | 2.3% |
| Equity Risk Premium | S&P Global | 6% |
| Consumer Services Unlevered Beta | Simply Wall St/ S&P Global | 0.76 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.762 (1 + (1- 30%) (28.26%)) |
0.942 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.94 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.942 * 5.96%) |
7.93% |
Discounted Cash Flow Calculation for ASX:GEM using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for G8 Education is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (AUD, Millions) | Source |
Present Value Discounted (@ 7.93%) |
|
|---|---|---|---|
| 2019 | 69.48 | Analyst x6 | 64.38 |
| 2020 | 97.50 | Analyst x6 | 83.71 |
| 2021 | 123.58 | Analyst x6 | 98.31 |
| 2022 | 140.02 | Est @ 13.3% | 103.20 |
| 2023 | 154.03 | Est @ 10% | 105.19 |
| 2024 | 165.88 | Est @ 7.7% | 104.97 |
| 2025 | 175.97 | Est @ 6.08% | 103.17 |
| 2026 | 184.68 | Est @ 4.95% | 100.33 |
| 2027 | 192.36 | Est @ 4.16% | 96.83 |
| 2028 | 199.29 | Est @ 3.6% | 92.95 |
| Present value of next 10 years cash flows | A$953.04 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= A$199.29 × (1 + 2.31%) ÷ (7.93% – 2.31%) |
A$3,632.40 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= A$3,632.40 ÷ (1 + 7.93%)10 |
A$1,694.17 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= A$953.04 + A$1,694.17 |
A$2,647.21 |
| Equity Value per Share (AUD) |
= Total value / Shares Outstanding
= A$2,647.21 / 458.40 |
A$5.77 |
| Calculation | Result | |
|---|---|---|
| Value per share (AUD) | From above. | A$5.77 |
| Current discount | Discount to share price of
A$2.95
= -1 x (A$2.95 - A$5.77) / A$5.77 |
48.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- G8 Education's share price is below the future cash flow value, and at a moderate discount (> 20%).
- G8 Education's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for G8 Education's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
G8 Education's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in AUD | A$0.16 |
| ASX:GEM Share Price ** | ASX (2019-06-24) in AUD | A$2.95 |
| Australia Consumer Services Industry PE Ratio | Median Figure of 11 Publicly-Listed Consumer Services Companies | 18.09x |
| Australia Market PE Ratio | Median Figure of 545 Publicly-Listed Companies | 16.25x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of G8 Education.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = ASX:GEM Share Price ÷ EPS (both in AUD) = 2.95 ÷ 0.16 |
18.6x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- G8 Education is overvalued based on earnings compared to the AU Consumer Services industry average.
- G8 Education is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does
G8 Education's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 18.6x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts |
14%per year |
| Australia Consumer Services Industry PEG Ratio | Median Figure of 7 Publicly-Listed Consumer Services Companies | 1.29x |
| Australia Market PEG Ratio | Median Figure of 359 Publicly-Listed Companies | 1.4x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 18.6x ÷ 14% |
1.33x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- G8 Education is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
G8 Education's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in AUD | A$1.96 |
| ASX:GEM Share Price * | ASX (2019-06-24) in AUD | A$2.95 |
| Australia Consumer Services Industry PB Ratio | Median Figure of 19 Publicly-Listed Consumer Services Companies | 2.07x |
| Australia Market PB Ratio | Median Figure of 1,689 Publicly-Listed Companies | 1.63x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = ASX:GEM Share Price ÷ Book Value per Share (both in AUD) = 2.95 ÷ 1.96 |
1.5x |
* Primary Listing of G8 Education.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- G8 Education is good value based on assets compared to the AU Consumer Services industry average.
Value checks
We assess G8 Education's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check) G8 Education has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- G8 Education's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
- G8 Education's earnings growth is expected to exceed the Australia market average.
- G8 Education's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| ASX:GEM Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts | 14% |
| ASX:GEM Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts | 7.3% |
| Australia Consumer Services Industry Earnings Growth Rate | Market Cap Weighted Average | 20.2% |
| Australia Consumer Services Industry Revenue Growth Rate | Market Cap Weighted Average | 11.9% |
| Australia Market Earnings Growth Rate | Market Cap Weighted Average | 7% |
| Australia Market Revenue Growth Rate | Market Cap Weighted Average | 3.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (5 months ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| Date (Data in AUD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 1,260 | 168 | 1 | |
| 2022-12-31 | 1,188 | 157 | 1 | |
| 2021-12-31 | 1,079 | 145 | 112 | 10 |
| 2020-12-31 | 1,017 | 134 | 104 | 12 |
| 2019-12-31 | 939 | 116 | 88 | 12 |
| Date (Data in AUD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 856 | 106 | 72 |
| 2018-09-30 | 839 | 102 | 73 |
| 2018-06-30 | 822 | 98 | 74 |
| 2018-03-31 | 809 | 95 | 77 |
| 2017-12-31 | 796 | 92 | 81 |
| 2017-09-30 | 790 | 96 | 83 |
| 2017-06-30 | 785 | 100 | 86 |
| 2017-03-31 | 780 | 104 | 83 |
| 2016-12-31 | 775 | 109 | 80 |
| 2016-09-30 | 758 | 101 | 83 |
| 2016-06-30 | 740 | 93 | 85 |
| 2016-03-31 | 713 | 94 | 87 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (5 months ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
All data from G8 Education Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in AUD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 0.37 | 0.37 | 0.37 | 1.00 |
| 2022-12-31 | 0.34 | 0.34 | 0.34 | 1.00 |
| 2021-12-31 | 0.25 | 0.30 | 0.20 | 9.00 |
| 2020-12-31 | 0.22 | 0.25 | 0.18 | 11.00 |
| 2019-12-31 | 0.19 | 0.20 | 0.18 | 11.00 |
| Date (Data in AUD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.16 |
| 2018-09-30 | 0.16 |
| 2018-06-30 | 0.16 |
| 2018-03-31 | 0.18 |
| 2017-12-31 | 0.19 |
| 2017-09-30 | 0.20 |
| 2017-06-30 | 0.22 |
| 2017-03-31 | 0.22 |
| 2016-12-31 | 0.21 |
| 2016-09-30 | 0.22 |
| 2016-06-30 | 0.23 |
| 2016-03-31 | 0.24 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess G8 Education's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
G8 Education has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has G8 Education performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- G8 Education's year on year earnings growth rate has been positive over the past 5 years.
- G8 Education's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- G8 Education's 1-year earnings growth is negative, it can't be compared to the AU Consumer Services industry average.
Earnings and Revenue History
All data from G8 Education Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in AUD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 855.56 | 71.83 | 108.92 | |
| 2018-09-30 | 838.90 | 72.84 | 105.81 | |
| 2018-06-30 | 822.24 | 73.85 | 102.70 | |
| 2018-03-31 | 808.88 | 77.22 | 100.27 | |
| 2017-12-31 | 795.52 | 80.58 | 97.85 | |
| 2017-09-30 | 790.44 | 83.23 | 95.37 | |
| 2017-06-30 | 785.36 | 85.88 | 92.88 | |
| 2017-03-31 | 780.17 | 83.07 | 90.64 | |
| 2016-12-31 | 774.97 | 80.27 | 88.40 | |
| 2016-09-30 | 757.56 | 82.74 | 85.99 | |
| 2016-06-30 | 740.15 | 85.21 | 83.59 | |
| 2016-03-31 | 713.45 | 86.90 | 80.79 | |
| 2015-12-31 | 686.75 | 88.58 | 77.99 | |
| 2015-09-30 | 643.08 | 76.62 | 74.12 | |
| 2015-06-30 | 599.41 | 64.66 | 70.24 | |
| 2015-03-31 | 540.76 | 58.70 | 63.16 | |
| 2014-12-31 | 482.11 | 52.73 | 56.09 | |
| 2014-09-30 | 413.26 | 44.55 | 49.06 | |
| 2014-06-30 | 344.41 | 36.36 | 42.03 | |
| 2014-03-31 | 309.51 | 33.72 | 38.03 | |
| 2013-12-31 | 274.62 | 31.07 | 34.02 | |
| 2013-09-30 | 246.53 | 27.26 | 31.35 | |
| 2013-06-30 | 218.45 | 23.45 | 28.67 | |
| 2013-03-31 | 198.74 | 21.33 | 26.40 | |
| 2012-12-31 | 179.03 | 19.21 | 24.13 | |
| 2012-09-30 | 167.15 | 19.75 | 23.05 | |
| 2012-06-30 | 155.28 | 20.29 | 21.97 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- G8 Education has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- G8 Education used its assets more efficiently than the AU Consumer Services industry average last year based on Return on Assets.
- G8 Education's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess G8 Education's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
G8 Education has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is G8 Education's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up G8 Education's finances.
The net worth of a company is the difference between its assets and liabilities.
- G8 Education's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- G8 Education's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from G8 Education Company Filings, last reported 5 months ago.
| Date (Data in AUD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 893.48 | 371.75 | 56.88 |
| 2018-09-30 | 893.48 | 371.75 | 56.88 |
| 2018-06-30 | 859.32 | 347.90 | 34.68 |
| 2018-03-31 | 859.32 | 347.90 | 34.68 |
| 2017-12-31 | 865.34 | 303.49 | 51.61 |
| 2017-09-30 | 865.34 | 303.49 | 51.61 |
| 2017-06-30 | 822.17 | 385.82 | 162.74 |
| 2017-03-31 | 822.17 | 385.82 | 162.74 |
| 2016-12-31 | 625.88 | 410.65 | 30.22 |
| 2016-09-30 | 625.88 | 410.65 | 30.22 |
| 2016-06-30 | 600.58 | 396.23 | 43.40 |
| 2016-03-31 | 600.58 | 396.23 | 43.40 |
| 2015-12-31 | 602.79 | 516.35 | 198.87 |
| 2015-09-30 | 602.79 | 516.35 | 198.87 |
| 2015-06-30 | 558.55 | 364.88 | 84.32 |
| 2015-03-31 | 558.55 | 364.88 | 84.32 |
| 2014-12-31 | 542.01 | 353.17 | 122.17 |
| 2014-09-30 | 542.01 | 353.17 | 122.17 |
| 2014-06-30 | 431.57 | 262.52 | 154.96 |
| 2014-03-31 | 431.57 | 262.52 | 154.96 |
| 2013-12-31 | 304.79 | 114.50 | 114.04 |
| 2013-09-30 | 304.79 | 114.50 | 114.04 |
| 2013-06-30 | 218.57 | 47.96 | 32.16 |
| 2013-03-31 | 218.57 | 47.96 | 32.16 |
| 2012-12-31 | 182.31 | 49.58 | 23.43 |
| 2012-09-30 | 182.31 | 49.58 | 23.43 |
| 2012-06-30 | 131.41 | 37.07 | 12.36 |
- G8 Education's level of debt (41.6%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (37.9% vs 41.6% today).
- Debt is well covered by operating cash flow (28.5%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).
Financial health checks
We assess G8 Education's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) G8 Education has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is G8 Education's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
A$2,000 of
G8 Education
shares you are expected to receive
A$98
in your first year as a dividend.
Dividend Amount
- G8 Education's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.58%).
- G8 Education's dividend is below the markets top 25% of dividend payers in Australia (5.79%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| Australia Consumer Services Industry Average Dividend Yield | Market Cap Weighted Average of 10 Stocks | 2.2% |
| Australia Market Average Dividend Yield | Market Cap Weighted Average of 416 Stocks | 4.1% |
| Australia Minimum Threshold Dividend Yield | 10th Percentile | 1.6% |
| Australia Bottom 25% Dividend Yield | 25th Percentile | 2.6% |
| Australia Top 25% Dividend Yield | 75th Percentile | 5.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in A$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 0.26 | 1.00 |
| 2022-12-31 | 0.24 | 1.00 |
| 2021-12-31 | 0.19 | 10.00 |
| 2020-12-31 | 0.17 | 12.00 |
| 2019-12-31 | 0.14 | 12.00 |
| Date (Data in A$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-25 | 0.145 | 4.762 |
| 2018-02-26 | 0.180 | 7.253 |
| 2017-09-20 | 0.240 | 6.337 |
| 2017-06-19 | 0.240 | 6.352 |
| 2017-03-20 | 0.240 | 6.555 |
| 2017-01-10 | 0.240 | 6.453 |
| 2016-08-15 | 0.240 | 7.405 |
| 2015-12-11 | 0.240 | 6.543 |
| 2015-08-31 | 0.240 | 7.511 |
| 2015-06-10 | 0.240 | 7.332 |
| 2015-03-23 | 0.240 | 6.516 |
| 2014-12-04 | 0.240 | 5.793 |
| 2014-08-11 | 0.200 | 3.969 |
| 2014-06-18 | 0.180 | 3.847 |
| 2014-03-18 | 0.140 | 3.051 |
| 2013-12-10 | 0.140 | 4.066 |
| 2013-09-17 | 0.120 | 3.767 |
| 2013-06-11 | 0.120 | 4.517 |
| 2013-02-20 | 0.100 | 4.638 |
| 2012-12-17 | 0.080 | 4.965 |
| 2012-08-27 | 0.060 | 4.466 |
| 2012-02-27 | 0.040 | 4.321 |
| 2011-09-21 | 0.040 | 6.903 |
| 2011-06-17 | 0.040 | 5.989 |
| 2011-03-18 | 0.040 | 4.339 |
| 2010-12-13 | 0.040 | 4.166 |
| 2010-09-09 | 0.040 | 5.005 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- G8 Education has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
- Dividend payments have increased, but G8 Education only paid a dividend in the past 9 years.
Income/ dividend checks
We assess G8 Education's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can G8 Education afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) G8 Education has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | A$798,304 |
| TENURE AS CEO | 2.4 years |
CEO Bio
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 for managing the external and internal operations of the Group and providing consistent high level advice to the Board on operations, policy and planning. Gary has over 15 years’ experience in senior leadership roles covering a number of industries. He served as Chief Financial Officer and Company Secretary of G8 Education Limited since July 25, 2016 until January 4, 2017 and October 18, 2016 until January 4, 2017 respectively. Mr. Carroll has over 15 years of experience in accounting, treasury and banking areas across a number of industry sectors. He served as the Chief Supply Chain Officer of Super Retail Group Limited until July 22, 2016. He served as General Manager Group Development and General Manager Group Logistics at Super Retail Group Limited., since June 30, 2014. He served as the General Manager of Group Supply Chain at Super Retail Group Limited since July 2014. He served as General Manager of Group Development at Super Retail Group Limited from December 1, 2012 to July 2014 and served as its Group Chief Financial Officer from April 17 2006 to December 1, 2012. He joined Super Cheap Auto Group Ltd. in April 2006. After commencing his career with Ernst & Young, he served in senior management positions with companies such as Citibank, Duke Energy and Flight Centre. He served as a Director of Super Cheap Auto (New Zealand) Pty Limited until November 12, 2012. Mr Carroll holds Bachelor of Commerce (Hons) and Bachelor of Law (Honours) degrees from the University of Queensland, and is a Fellow of CPA Australia.
CEO Compensation
- Gary's compensation has been consistent with company performance over the past year, both up more than 20%.
- Gary's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure
Average tenure of the G8 Education management team in years:
- The average tenure for the G8 Education management team is less than 2 years, this suggests a new team.
Management Team
Gary Carroll
CEO, MD & Executive Director
A$798K
2.4 yrs
Sharyn Williams
Chief Financial Officer
A$468K
2.3 yrs
Jason Ball
General Manager of Operations
A$447K
2 yrs
Peter Nelson
Chief Information Officer
Tracey Wood
General Counsel & Company Secretary
1.1 yrs
Jenni Marsh
General Manager of Safety
0.9 yrs
Greg Bowell
General Manager of Marketing
1.6 yrs
Jessica Battersby
General Manager of Human Resources
Board of Directors Tenure
Average tenure and age of the G8 Education board of directors in years:
- The tenure for the G8 Education board of directors is about average.
Board of Directors
Mark Johnson
Non-Executive Chairman
A$277K
60
3.4 yrs
Gary Carroll
CEO, MD & Executive Director
A$798K
2.4 yrs
Brian Bailison
Independent Non-Executive Director
A$165K
47
9.3 yrs
Susan Forrester
Independent Non-Executive Director
A$165K
50
7.6 yrs
David Foster
Independent Non Executive Director
A$165K
49
3.3 yrs
Julie Cogin
Independent Non-Executive Director
A$140K
1.8 yrs
Margaret Zabel
Independent Non-Executive Director
A$140K
1.8 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by G8 Education individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (A$) | Value (A$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 24. Apr 19 | Sell | Challenger Limited | Company | 18. Dec 18 | 16. Apr 19 | -2,866,233 | A$3.02 | A$-8,657,456 | ||
| 24. Apr 19 | Buy | Challenger Limited | Company | 18. Dec 18 | 18. Apr 19 | 6,878,380 | A$3.10 | A$21,342,122 | ||
| 23. Apr 19 | Buy | Mark Johnson | Individual | 18. Apr 19 | 18. Apr 19 | 5,000 | A$2.99 | A$14,975 | ||
| 23. Apr 19 | Buy | Margaret Zabel | Individual | 18. Mar 19 | 18. Mar 19 | 14,000 | A$3.12 | A$43,674 | ||
| 05. Oct 18 | Buy | Legg Mason, Inc. | Company | 12. Jun 18 | 04. Oct 18 | 3,834,728 | A$2.16 | A$8,270,142 | ||
| 05. Oct 18 | Sell | Legg Mason, Inc. | Company | 20. Jun 18 | 21. Sep 18 | -625,422 | A$2.08 | A$-1,303,053 | ||
| 06. Dec 18 | Sell | The Vanguard Group, Inc. | Company | 10. Aug 18 | 30. Nov 18 | -160,857 | A$2.87 | A$-430,804 | ||
| 06. Dec 18 | Buy | The Vanguard Group, Inc. | Company | 03. Aug 18 | 04. Dec 18 | 1,160,551 | A$3.00 | A$3,444,259 | ||
| 07. Dec 18 | Sell | Nikko Asset Management Co., Ltd. | Company | 15. Nov 18 | 04. Dec 18 | -1,726,143 | A$2.94 | A$-5,077,767 | ||
| 07. Dec 18 | Buy | Nikko Asset Management Co., Ltd. | Company | 15. Nov 18 | 04. Dec 18 | 6,878,143 | A$2.93 | A$19,869,597 | ||
| 11. Jul 18 | Sell | FIL Limited | Company | 28. May 18 | 02. Jul 18 | -528,135 | A$2.65 | A$-1,401,045 | ||
| 11. Jul 18 | Buy | FIL Limited | Company | 04. May 18 | 09. Jul 18 | 5,561,600 | A$2.62 | A$14,571,391 | ||
| 02. Dec 18 | Buy | David Foster | Individual | 03. Dec 18 | 03. Dec 18 | 5,000 | A$2.84 | A$14,225 | ||
| 29. Nov 18 | Buy | Julie Cogin | Individual | 28. Nov 18 | 28. Nov 18 | 2,000 | A$2.81 | A$5,620 | ||
| 28. Nov 18 | Buy | Mark Johnson | Individual | 28. Nov 18 | 28. Nov 18 | 10,000 | A$2.82 | A$28,200 | ||
| 26. Nov 18 | Buy | Brian Bailison | Individual | 23. Nov 18 | 23. Nov 18 | 5,000 | A$2.85 | A$14,250 | ||
| 18. Nov 18 | Buy | Nikko Asset Management Co., Ltd. | Company | 14. Jul 18 | 14. Nov 18 | 13,502,990 | A$2.46 | A$33,129,427 | ||
| 26. Aug 18 | Sell | FIL Limited | Company | 22. Aug 18 | 22. Aug 18 | -350,194 | A$2.35 | A$-822,956 | ||
| 22. Aug 18 | Sell | FIL Limited | Company | 13. Aug 18 | 20. Aug 18 | -5,286,350 | A$2.41 | A$-12,243,526 | ||
| 13. Aug 18 | Sell | FIL Limited | Company | 30. Jul 18 | 09. Aug 18 | -7,977,193 | A$2.57 | A$-20,501,388 | ||
| 13. Aug 18 | Buy | FIL Limited | Company | 10. Jul 18 | 20. Jul 18 | 2,377,504 | A$2.52 | A$5,981,558 | ||
Management checks
We assess G8 Education's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) G8 Education has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Should We Be Cautious About G8 Education Limited's (ASX:GEM) ROE Of 8.0%?
The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for G8 Education: 8.0% = AU$72m ÷ AU$893m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … In my book the highest quality companies have high return on equity, despite low debt. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
Simply Wall St - – Full articleIf You Had Bought G8 Education (ASX:GEM) Stock Five Years Ago, You'd Be Sitting On A 33% Loss, Today
But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in G8 Education Limited (ASX:GEM), since the last five years saw the share price fall 33%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … While the share price declined over five years, G8 Education actually managed to increase EPS by an average of 7.1% per year.
Simply Wall St - – Full articleHow Financially Strong Is G8 Education Limited (ASX:GEM)?
On top of this, GEM has generated cash from operations of AU$106m over the same time period, leading to an operating cash to total debt ratio of 28%, meaning that GEM’s current level of operating cash is high enough to cover debt. … In GEM's, case, the ratio of 4.65x suggests that interest is appropriately covered, which means that lenders may be willing to lend out more funding as GEM’s high interest coverage is seen as responsible and safe practice. … Next Steps: GEM’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.
Simply Wall St - – Full articleIs G8 Education Limited's (ASX:GEM) Capital Allocation Ability Worth Your Time?
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
Simply Wall St - – Full articleG8 Education Limited (ASX:GEM): Is It A Smart Long Term Opportunity?
After G8 Education Limited's (ASX:GEM) earnings announcement in December 2018,. … analyst consensus outlook appear cautiously optimistic, … with earnings expected to grow by 24% in the upcoming year
Simply Wall St - – Full articleWhat Are Analysts Saying About G8 Education Limited's (ASX:GEM) Earnings Trend?
In December 2018, G8 Education Limited (ASX:GEM) announced its most recent earnings update, whicha … suggested
Simply Wall St - – Full articleG8 Education Limited (ASX:GEM): The Yield That Matters The Most
What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … I’ve analysed below, the health and outlook of G8 Education’s cash flow, which will help you understand the stock from a cash standpoint. … There are two methods I will use to evaluate the quality of G8 Education’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability
Simply Wall St - – Full articleRead This Before Buying G8 Education Limited (ASX:GEM) For Its Dividend
Historically, G8 Education Limited (ASX:GEM) has paid a dividend to shareholders. … Let's take a look at G8 Education in more detail. … 5 questions I ask before picking a dividend stock
Simply Wall St - – Full articleDon't Sell G8 Education Limited (ASX:GEM) Before You Read This
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use G8 Education Limited's (ASX:GEM) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleDid You Miss G8 Education's 15% Share Price Gain?
For example, the G8 Education Limited (ASX:GEM) share price is up 15% in the last year, clearly besting than the market return of around 7.9%. … During the last year, G8 Education actually saw its earnings per share drop 25%. … This means it's unlikely the market is judging the company based on earnings growth.
Simply Wall St - – Full articleCompany Info
Description
G8 Education Limited owns, operates, franchises, and manages child care centers. The company provides developmental and educational child care services. It operates 519 centers in Australia and Singapore. The company was founded in 2006 and is headquartered in Varsity Lakes, Australia.
Details
| Name: | G8 Education Limited |
| GEM | |
| Exchange: | ASX |
| Founded: | 2006 |
| A$1,315,600,532 | |
| 458,397,398 | |
| Website: | http://www.g8education.edu.au |
| Address: |
G8 Education Limited 159 Varsity Parade, Varsity Lakes, Queensland, 4227, Australia |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| ASX | GEM | Ordinary Shares | Australian Securities Exchange | AU | AUD | 26. Mar 2010 | |
| DB | 3EAG | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 26. Mar 2010 | |
| CHIA | GEM | Ordinary Shares | Chi-X Australia | AU | AUD | 26. Mar 2010 |
Number of employees
Current staff
Industry
| Education Services | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/24 10:39 |
| End of day share price update: | 2019/06/24 00:00 |
| Last estimates confirmation: | 2019/05/14 |
| Last earnings filing: | 2019/02/24 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
