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G8 Education ASX:GEM Stock Report

Last Price

AU$1.30

Market Cap

AU$1.0b

7D

2.0%

1Y

8.3%

Updated

09 May, 2025

Data

Company Financials +

G8 Education Limited

ASX:GEM Stock Report

Market Cap: AU$1.0b

GEM Stock Overview

Provides early childhood education and care services in Australia. More details

GEM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends3/6

Rewards

Trading at 65.5% below our estimate of its fair value

Earnings are forecast to grow 11.2% per year

Earnings grew by 20.8% over the past year

Trading at good value compared to peers and industry

Risk Analysis

Unstable dividend track record


Community vs My Fair Value

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Select a narrative for quick price alerts from the community, or create your own.

GEM logo
G8 Education
AN
AnalystConsensusTarget
Consensus Narrative from 5 Analysts

Government Investment In Kindergarten Programs Will Drive Higher Occupancy Rates

Key Takeaways Planned optimizations, including exiting underperforming centers and boosting employee retention, aim to improve operating margins and net profit. Increased revenue is anticipated from inflationary fee rises and government investments, with sustainability-linked debt refinancing enhancing financial flexibility.
View narrative
AU$1.51
FV
13.8% undervalued intrinsic discount
4.07%
Revenue growth p.a.
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13users have followed this narrative
8 days ago author updated this narrative
View G8 Education Community

G8 Education Limited Competitors

IDP Education

ASX:IEL

AU$2.7b

Embark Early Education

ASX:EVO

AU$128.4m

Kip McGrath Education Centres

ASX:KME

AU$23.2m

EDU Holdings

ASX:EDU

AU$21.8m

Price History & Performance

Summary of share price highs, lows and changes for G8 Education
Historical stock prices
Current Share PriceAU$1.30
52 Week HighAU$1.44
52 Week LowAU$1.15
Beta0.64
1 Month Change7.00%
3 Month Change-5.11%
1 Year Change8.33%
3 Year Change21.50%
5 Year Change51.16%
Change since IPO188.89%

Recent News & Updates

G8 Education (ASX:GEM) Will Pay A Larger Dividend Than Last Year At A$0.035

Mar 03
G8 Education (ASX:GEM) Will Pay A Larger Dividend Than Last Year At A$0.035
author-image

Optimizing Childcare Portfolio And Digital Adoption Will Boost Future Earnings

Feb 09 Portfolio optimization and fee increases should improve occupancy, revenue, and net margins, boosting overall earnings.

Recent updates

G8 Education (ASX:GEM) Will Pay A Larger Dividend Than Last Year At A$0.035

Mar 03
G8 Education (ASX:GEM) Will Pay A Larger Dividend Than Last Year At A$0.035
author-image

Optimizing Childcare Portfolio And Digital Adoption Will Boost Future Earnings

Feb 09 Portfolio optimization and fee increases should improve occupancy, revenue, and net margins, boosting overall earnings.

G8 Education Limited Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

Aug 23
G8 Education Limited Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

G8 Education (ASX:GEM) Is Paying Out A Larger Dividend Than Last Year

Mar 05
G8 Education (ASX:GEM) Is Paying Out A Larger Dividend Than Last Year

Be Wary Of G8 Education (ASX:GEM) And Its Returns On Capital

Dec 19
Be Wary Of G8 Education (ASX:GEM) And Its Returns On Capital

If EPS Growth Is Important To You, G8 Education (ASX:GEM) Presents An Opportunity

Oct 26
If EPS Growth Is Important To You, G8 Education (ASX:GEM) Presents An Opportunity

G8 Education (ASX:GEM) Has Announced That It Will Be Increasing Its Dividend To A$0.015

Aug 28
G8 Education (ASX:GEM) Has Announced That It Will Be Increasing Its Dividend To A$0.015

Here's Why G8 Education (ASX:GEM) Has A Meaningful Debt Burden

Dec 14
Here's Why G8 Education (ASX:GEM) Has A Meaningful Debt Burden

A Look At The Fair Value Of G8 Education Limited (ASX:GEM)

May 18
A Look At The Fair Value Of G8 Education Limited (ASX:GEM)

Should You Think About Buying G8 Education Limited (ASX:GEM) Now?

Apr 13
Should You Think About Buying G8 Education Limited (ASX:GEM) Now?

Some Investors May Be Worried About G8 Education's (ASX:GEM) Returns On Capital

Feb 22
Some Investors May Be Worried About G8 Education's (ASX:GEM) Returns On Capital

We Think G8 Education (ASX:GEM) Can Stay On Top Of Its Debt

Oct 08
We Think G8 Education (ASX:GEM) Can Stay On Top Of Its Debt

Is It Time To Consider Buying G8 Education Limited (ASX:GEM)?

Sep 17
Is It Time To Consider Buying G8 Education Limited (ASX:GEM)?

G8 Education Limited (ASX:GEM) Shares Could Be 28% Below Their Intrinsic Value Estimate

May 02
G8 Education Limited (ASX:GEM) Shares Could Be 28% Below Their Intrinsic Value Estimate

We Think G8 Education (ASX:GEM) Is Taking Some Risk With Its Debt

Apr 10
We Think G8 Education (ASX:GEM) Is Taking Some Risk With Its Debt

Here's What To Make Of G8 Education's (ASX:GEM) Returns On Capital

Mar 11
Here's What To Make Of G8 Education's (ASX:GEM) Returns On Capital

Is Now The Time To Look At Buying G8 Education Limited (ASX:GEM)?

Feb 22
Is Now The Time To Look At Buying G8 Education Limited (ASX:GEM)?

G8 Education Limited's (ASX:GEM) Intrinsic Value Is Potentially 46% Above Its Share Price

Feb 01
G8 Education Limited's (ASX:GEM) Intrinsic Value Is Potentially 46% Above Its Share Price

Are Institutions Heavily Invested In G8 Education Limited's (ASX:GEM) Shares?

Jan 11
Are Institutions Heavily Invested In G8 Education Limited's (ASX:GEM) Shares?

G8 Education's(ASX:GEM) Share Price Is Down 66% Over The Past Five Years.

Dec 21
G8 Education's(ASX:GEM) Share Price Is Down 66% Over The Past Five Years.

Factors Income Investors Should Consider Before Adding G8 Education Limited (ASX:GEM) To Their Portfolio

Dec 06
Factors Income Investors Should Consider Before Adding G8 Education Limited (ASX:GEM) To Their Portfolio

What Does G8 Education Limited's (ASX:GEM) Share Price Indicate?

Nov 20
What Does G8 Education Limited's (ASX:GEM) Share Price Indicate?

Is Now The Time To Look At Buying G8 Education Limited (ASX:GEM)?

Aug 10
Is Now The Time To Look At Buying G8 Education Limited (ASX:GEM)?

Is It Time To Consider Buying G8 Education Limited (ASX:GEM)?

Aug 10
Is It Time To Consider Buying G8 Education Limited (ASX:GEM)?

An Intrinsic Calculation For G8 Education Limited (ASX:GEM) Suggests It's 24% Undervalued

Jul 05
An Intrinsic Calculation For G8 Education Limited (ASX:GEM) Suggests It's 24% Undervalued

Shareholder Returns

GEMAU Consumer ServicesAU Market
7D2.0%3.4%0.7%
1Y8.3%-29.1%4.1%

Return vs Industry: GEM exceeded the Australian Consumer Services industry which returned -29.1% over the past year.

Return vs Market: GEM exceeded the Australian Market which returned 4.1% over the past year.

Price Volatility

Is GEM's price volatile compared to industry and market?
GEM volatility
GEM Average Weekly Movement4.0%
Consumer Services Industry Average Movement7.5%
Market Average Movement9.3%
10% most volatile stocks in AU Market16.7%
10% least volatile stocks in AU Market4.2%

Stable Share Price: GEM has not had significant price volatility in the past 3 months compared to the Australian market.

Volatility Over Time: GEM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20077,099Pejman Okhovatwww.g8education.edu.au

G8 Education Limited provides early childhood education and care services in Australia. It offers its services under various brands. The company was incorporated in 2007 and is based in Varsity Lakes, Australia.

G8 Education Limited Fundamentals Summary

How do G8 Education's earnings and revenue compare to its market cap?
GEM fundamental statistics
Market capAU$1.02b
Earnings (TTM)AU$67.69m
Revenue (TTM)AU$1.02b

14.9x

P/E Ratio

1.0x

P/S Ratio

Is GEM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
GEM income statement (TTM)
RevenueAU$1.02b
Cost of RevenueAU$86.06m
Gross ProfitAU$929.21m
Other ExpensesAU$861.52m
EarningsAU$67.69m

Last Reported Earnings

Dec 31, 2024

Next Earnings Date

Aug 26, 2025

Earnings per share (EPS)0.087
Gross Margin91.52%
Net Profit Margin6.67%
Debt/Equity Ratio12.5%

How did GEM perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

66%

Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/09 07:51
End of Day Share Price 2025/05/09 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

G8 Education Limited is covered by 15 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Moira DawAPP Securities Pty Ltd.
Silvia SpadeaBofA Global Research
Cameron BellCanaccord Genuity