GEM Stock Overview
G8 Education Limited owns, operates, franchises, and manages child care centers in Australia.
G8 Education Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$1.07|
|52 Week High||AU$1.31|
|52 Week Low||AU$0.92|
|1 Month Change||-2.73%|
|3 Month Change||7.00%|
|1 Year Change||-10.83%|
|3 Year Change||-61.79%|
|5 Year Change||-67.38%|
|Change since IPO||137.78%|
Recent News & Updates
We Think G8 Education (ASX:GEM) Can Stay On Top Of Its Debt
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Is It Time To Consider Buying G8 Education Limited (ASX:GEM)?
While G8 Education Limited ( ASX:GEM ) might not be the most widely known stock at the moment, it saw a decent share...
G8 Education Limited (ASX:GEM) Shares Could Be 28% Below Their Intrinsic Value Estimate
Does the May share price for G8 Education Limited ( ASX:GEM ) reflect what it's really worth? Today, we will estimate...
|GEM||AU Consumer Services||AU Market|
Return vs Industry: GEM underperformed the Australian Consumer Services industry which returned 33.4% over the past year.
Return vs Market: GEM underperformed the Australian Market which returned 11.8% over the past year.
|GEM Average Weekly Movement||4.2%|
|Consumer Services Industry Average Movement||5.2%|
|Market Average Movement||8.3%|
|10% most volatile stocks in AU Market||15.8%|
|10% least volatile stocks in AU Market||3.7%|
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 (4%) has been stable over the past year.
About the Company
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.
G8 Education Fundamentals Summary
|GEM fundamental statistics|
Is GEM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GEM income statement (TTM)|
|Cost of Revenue||AU$590.77m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 22, 2022
|Earnings per share (EPS)||0.097|
|Net Profit Margin||9.24%|
How did GEM perform over the long term?See historical performance and comparison
Is G8 Education undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GEM (A$1.07) is trading below our estimate of fair value (A$1.13)
Significantly Below Fair Value: GEM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: GEM is good value based on its PE Ratio (11x) compared to the Australian Consumer Services industry average (28.9x).
PE vs Market: GEM is good value based on its PE Ratio (11x) compared to the Australian market (18.7x).
Price to Earnings Growth Ratio
PEG Ratio: GEM is good value based on its PEG Ratio (0.8x)
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 (2.8x).
How is G8 Education forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GEM's forecast earnings growth (13.8% per year) is above the savings rate (1.9%).
Earnings vs Market: GEM's earnings (13.8% per year) are forecast to grow faster than the Australian market (11.6% per year).
High Growth Earnings: GEM's earnings are forecast to grow, but not significantly.
Revenue vs Market: GEM's revenue (4.8% per year) is forecast to grow slower than the Australian market (5.2% per year).
High Growth Revenue: GEM's revenue (4.8% 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 (8.3%).
How has G8 Education performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GEM has a large one-off gain of A$20.9M impacting its June 30 2021 financial results.
Growing Profit Margin: GEM became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: GEM's earnings have declined by 45.9% per year over the past 5 years.
Accelerating Growth: GEM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: GEM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (43.2%).
Return on Equity
High ROE: GEM's Return on Equity (9.1%) is considered low.
How is G8 Education's financial position?
Financial Position Analysis
Short Term Liabilities: GEM's short term assets (A$137.7M) do not cover its short term liabilities (A$265.3M).
Long Term Liabilities: GEM's short term assets (A$137.7M) do not cover its long term liabilities (A$704.5M).
Debt to Equity History and Analysis
Debt Level: GEM has more cash than its total debt.
Reducing Debt: GEM's debt to equity ratio has reduced from 66% to 10.5% over the past 5 years.
Debt Coverage: GEM's debt is well covered by operating cash flow (188.7%).
Interest Coverage: GEM's interest payments on its debt are not well covered by EBIT (2.6x coverage).
What is G8 Education current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GEM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GEM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GEM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GEM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: GEM is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GEM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Gary G. Carroll, B.Comm (Hons), B.Law (Hons), CPA, has been Chief Executive Officer, Managing Director and Executive Director of G8 Education Limited since January 1, 2017. Mr. Carroll is responsible f...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD591.37K) is below average for companies of similar size in the Australian market ($USD965.91K).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Experienced Management: GEM's management team is considered experienced (3.5 years average tenure).
Experienced Board: GEM's board of directors are considered experienced (4.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
G8 Education Limited's employee growth, exchange listings and data sources
- Name: G8 Education Limited
- Ticker: GEM
- Exchange: ASX
- Founded: 2006
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: AU$906.708m
- Shares outstanding: 847.39m
- Website: https://www.g8education.edu.au
Number of Employees
- G8 Education Limited
- 159 Varsity Parade
- Varsity Lakes
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/28 07:04|
|End of Day Share Price||2021/11/26 00:00|
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.