G8 Education
Market Cap
AU$872.8m
Last Updated
2021/03/09 07:02 UTC
Data Sources
Company Financials +
Executive Summary
G8 Education Limited owns, operates, franchises, and manages child care centers in Australia. More Details
Snowflake Analysis
Adequate balance sheet with reasonable growth potential.
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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GEM's weekly volatility has decreased from 11% to 4% over the past year.
Market Performance
7 Day Return
-1.9%
GEM
-6.2%
AU Consumer Services
-1.2%
AU Market
1 Year Return
-17.9%
GEM
21.9%
AU Consumer Services
22.6%
AU Market
Return vs Industry: GEM underperformed the Australian Consumer Services industry which returned 10% over the past year.
Return vs Market: GEM underperformed the Australian Market which returned 12.7% over the past year.
Shareholder returns
| GEM | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | -6.2% | -1.2% |
| 30 Day | -13.4% | -3.0% | -1.9% |
| 90 Day | -16.3% | 3.1% | 1.5% |
| 1 Year | -10.7%-17.9% | 24.0%21.9% | 26.6%22.6% |
| 3 Year | -54.8%-62.5% | 35.0%23.2% | 27.4%11.9% |
| 5 Year | -60.4%-71.8% | 3.9%-12.5% | 59.9%28.5% |
Long-Term 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
2 weeks ago | Simply Wall St
Is Now The Time To Look At Buying G8 Education Limited (ASX:GEM)?1 month ago | Simply Wall St
G8 Education Limited's (ASX:GEM) Intrinsic Value Is Potentially 46% Above Its Share Price1 month ago | Simply Wall St
Are Institutions Heavily Invested In G8 Education Limited's (ASX:GEM) Shares?Valuation
Is G8 Education undervalued compared to its fair value and its price relative to the market?
23.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GEM (A$1.03) is trading below our estimate of fair value (A$1.35)
Significantly Below Fair Value: GEM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GEM is unprofitable, so we can't compare its PE Ratio to the AU Consumer Services industry average.
PE vs Market: GEM is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate GEM's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: GEM is good value based on its PB Ratio (1x) compared to the AU Consumer Services industry average (1.9x).
Next Steps
Future Growth
How is G8 Education forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
61.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GEM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: GEM is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: GEM's is expected to become profitable in the next 3 years.
Revenue vs Market: GEM's revenue (6.9% per year) is forecast to grow faster than the Australian market (5.6% per year).
High Growth Revenue: GEM's revenue (6.9% 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 (8.2%).
Next Steps
Past Performance
How has G8 Education performed over the past 5 years?
-50.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GEM is currently unprofitable.
Growing Profit Margin: GEM is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: GEM is unprofitable, and losses have increased over the past 5 years at a rate of 50.6% per year.
Accelerating Growth: Unable to compare GEM's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: GEM is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (-2.3%).
Return on Equity
High ROE: GEM has a negative Return on Equity (-21.38%), as it is currently unprofitable.
Next Steps
Financial Health
How is G8 Education's financial position?
Financial Position Analysis
Short Term Liabilities: GEM's short term assets (A$344.6M) exceed its short term liabilities (A$275.8M).
Long Term Liabilities: GEM's short term assets (A$344.6M) do not cover its long term liabilities (A$923.8M).
Debt to Equity History and Analysis
Debt Level: GEM's debt to equity ratio (33.7%) is considered satisfactory.
Reducing Debt: GEM's debt to equity ratio has reduced from 85.2% to 33.7% over the past 5 years.
Debt Coverage: GEM's debt is well covered by operating cash flow (64.2%).
Interest Coverage: GEM is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is G8 Education current dividend yield, its reliability and sustainability?
4.75%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GEM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GEM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GEM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GEM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: GEM is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GEM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Gary Carroll
4.17yrs
Tenure
AU$830,809
Compensation
Mr. Gary G. Carroll, B.Comm (Hons), B.Law (Hons), CPA, has been Chief Executive Officer, Managing Director and Executive Director of G8 Education Limited since January 1, 2017. Mr. Carroll is responsible f...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD635.95K) is below average for companies of similar size in the Australian market ($USD925.61K).
Compensation vs Earnings: Gary's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.17yrs | AU$830.81k | 0.021% A$ 179.8k | |
| Chief Financial Officer | 4.08yrs | AU$441.43k | 0.0077% A$ 67.4k | |
| Chief Operating Officer | no data | no data | no data | |
| Chief Information Officer | no data | no data | no data | |
| General Counsel & Company Secretary | 2.83yrs | no data | no data | |
| General Manager of Marketing | 3.33yrs | no data | no data | |
| Chief People & Transformation Officer | 0.42yr | no data | no data |
3.3yrs
Average Tenure
Experienced Management: GEM's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.17yrs | AU$830.81k | 0.021% A$ 179.8k | |
| Independent Non Executive Director | 5.08yrs | AU$148.75k | 0.0065% A$ 56.7k | |
| Independent Non-Executive Director | 0.83yr | AU$90.24k | 0.0059% A$ 51.5k | |
| Independent Non-Executive Director | 9.33yrs | AU$148.75k | 0.0061% A$ 53.5k | |
| Independent Non-Executive Chairman | 5.17yrs | AU$257.31k | 0.012% A$ 103.0k | |
| Independent Non-Executive Director | 3.5yrs | AU$126.22k | 0.0034% A$ 29.9k | |
| Independent Non-Executive Director | 3.5yrs | AU$126.22k | 0.0039% A$ 34.0k |
4.2yrs
Average Tenure
52yo
Average Age
Experienced Board: GEM's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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 84.1%.
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$872.812m
- Shares outstanding: 847.39m
- 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 |
| GEDU.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Mar 2010 |
Biography
G8 Education Limited owns, operates, franchises, and manages child care centers in Australia. The company provides educational child care services. As of December 31, 2020, it operated 472 centers. The com...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/09 07:02 |
| End of Day Share Price | 2021/03/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.