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G8 Education

ASX:GEM
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GEM
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Consumer Services
Company description

G8 Education Limited owns, operates, franchises, and manages child care centers. The last earnings update was 54 days ago. More info.


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GEM Share Price and Events
7 Day Returns
-13.9%
ASX:GEM
-1.2%
AU Consumer Services
0.7%
AU Market
1 Year Returns
26.4%
ASX:GEM
35%
AU Consumer Services
4.7%
AU Market
GEM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
G8 Education (GEM) -13.9% -5.8% 0.7% 26.4% -24.2% -39.4%
AU Consumer Services -1.2% 2.5% 20.3% 35% 6.8% -19.7%
AU Market 0.7% 1.1% 6.5% 4.7% 17.5% 4.9%
1 Year Return vs Industry and Market
  • GEM underperformed the Consumer Services industry which returned 35% over the past year.
  • GEM outperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
GEM
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for G8 Education.

ASX:GEM Discounted Cash Flow Data Sources
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 8.9%
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.

Calculation of Discount Rate/ Cost of Equity for ASX:GEM
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 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.974 (1 + (1- 30%) (27.77%))
1.11
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.11 * 5.96%)
8.93%

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.

ASX:GEM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.93%)
2019 70.40 Analyst x6 64.63
2020 97.95 Analyst x6 82.55
2021 124.25 Analyst x6 96.14
2022 140.83 Est @ 13.35% 100.04
2023 154.97 Est @ 10.04% 101.06
2024 166.93 Est @ 7.72% 99.94
2025 177.11 Est @ 6.1% 97.34
2026 185.89 Est @ 4.96% 93.80
2027 193.64 Est @ 4.17% 89.70
2028 200.63 Est @ 3.61% 85.33
Present value of next 10 years cash flows A$910.54
ASX:GEM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$200.63 × (1 + 2.31%) ÷ (8.93% – 2.31%)
A$3,103.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$3,103.52 ÷ (1 + 8.93%)10
A$1,319.89
ASX:GEM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$910.54 + A$1,319.89
A$2,230.43
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$2,230.43 / 458.40
A$4.87
ASX:GEM Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$4.87
Current discount Discount to share price of A$2.92
= -1 x (A$2.92 - A$4.87) / A$4.87
40%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price G8 Education is available for.
Intrinsic value
40%
Share price is A$2.92 vs Future cash flow value of A$4.87
Current Discount Checks
For G8 Education to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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, but not 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?
Raw Data
ASX:GEM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.16
ASX:GEM Share Price ** ASX (2019-04-18) in AUD A$2.92
Australia Consumer Services Industry PE Ratio Median Figure of 11 Publicly-Listed Consumer Services Companies 18.41x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of G8 Education.

ASX:GEM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:GEM Share Price ÷ EPS (both in AUD)

= 2.92 ÷ 0.16

18.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • G8 Education is good value 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?
Raw Data
ASX:GEM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.41x
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 1.32x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:GEM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.41x ÷ 14%

1.32x

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?
Raw Data
ASX:GEM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.96
ASX:GEM Share Price * ASX (2019-04-18) in AUD A$2.92
Australia Consumer Services Industry PB Ratio Median Figure of 19 Publicly-Listed Consumer Services Companies 2.08x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.68x
ASX:GEM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:GEM Share Price ÷ Book Value per Share (both in AUD)

= 2.92 ÷ 1.96

1.49x

* 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.
X
Value checks
We assess G8 Education's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. 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

 How is G8 Education expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

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!
Annual Growth Rate
14%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is G8 Education expected to grow at an attractive rate?
  • 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
Raw Data
ASX:GEM Future Growth Rates Data Sources
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 20.1%
Australia Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 11.6%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*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
Raw Data
ASX:GEM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:GEM Future Estimates Data
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 1,078 145 113 10
2020-12-31 1,017 135 104 12
2019-12-31 939 117 88 12
ASX:GEM Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • G8 Education's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
  • G8 Education's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:GEM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 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 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GEM Future Estimates Data
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
ASX:GEM Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • G8 Education is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess G8 Education's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare G8 Education's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
G8 Education's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from G8 Education Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GEM Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess G8 Education's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of G8 Education's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from G8 Education Company Filings, last reported 3 months ago.

ASX:GEM Past Debt and Equity Data
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
2013-12-31 304.79 114.55 114.04
2013-09-30 304.79 114.55 114.04
2013-06-30 218.57 47.96 32.16
2013-03-31 218.57 47.96 32.16
2012-12-31 182.31 49.59 23.43
2012-09-30 182.31 49.59 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).
X
Financial health checks
We assess G8 Education's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. G8 Education has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
4.97%
Current annual income from G8 Education dividends. Estimated to be 5.76% next year.
If you bought A$2,000 of G8 Education shares you are expected to receive A$99 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • G8 Education's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • G8 Education's dividend is below the markets top 25% of dividend payers in Australia (5.81%).
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.
Raw Data
ASX:GEM Annualized Past and Future Dividends
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 2.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
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.

ASX:GEM Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.26 1.00
2022-12-31 0.24 1.00
2021-12-31 0.19 10.00
2020-12-31 0.17 12.00
2019-12-31 0.14 12.00
ASX:GEM Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.145 4.609
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.
Current Payout to shareholders
What portion of G8 Education's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess G8 Education's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of G8 Education's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gary Carroll
COMPENSATION A$798,304
TENURE AS CEO 2.3 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.
  • 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:

1.6
Average Tenure
  • The average tenure for the G8 Education management team is less than 2 years, this suggests a new team.
Management Team

Gary Carroll

TITLE
CEO, MD & Executive Director
COMPENSATION
A$798K
TENURE
2.3 yrs

Sharyn Williams

TITLE
Chief Financial Officer
COMPENSATION
A$468K
TENURE
2.2 yrs

Jason Ball

TITLE
General Manager of Operations
COMPENSATION
A$447K
TENURE
1.8 yrs

Peter Nelson

TITLE
Chief Information Officer

Tracey Wood

TITLE
General Counsel & Company Secretary
TENURE
0.9 yrs

Jenni Marsh

TITLE
General Manager of Safety
TENURE
0.8 yrs

Greg Bowell

TITLE
General Manager of Marketing
TENURE
1.4 yrs

Jessica Battersby

TITLE
General Manager of Human Resources
Board of Directors Tenure

Average tenure and age of the G8 Education board of directors in years:

3.2
Average Tenure
49.5
Average Age
  • The tenure for the G8 Education board of directors is about average.
Board of Directors

Mark Johnson

TITLE
Non-Executive Chairman
COMPENSATION
A$277K
AGE
60
TENURE
3.3 yrs

Gary Carroll

TITLE
CEO, MD & Executive Director
COMPENSATION
A$798K
TENURE
2.3 yrs

Brian Bailison

TITLE
Independent Non-Executive Director
COMPENSATION
A$165K
AGE
47
TENURE
9.1 yrs

Susan Forrester

TITLE
Independent Non-Executive Director
COMPENSATION
A$165K
AGE
50
TENURE
7.4 yrs

David Foster

TITLE
Independent Non Executive Director
COMPENSATION
A$165K
AGE
49
TENURE
3.2 yrs

Julie Cogin

TITLE
Independent Non-Executive Director
COMPENSATION
A$140K
TENURE
1.6 yrs

Margaret Zabel

TITLE
Independent Non-Executive Director
COMPENSATION
A$140K
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
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
26. Apr 18 Buy FIL Limited Company 04. Mar 18 24. Apr 18 6,776,043 A$2.66 A$18,024,276
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
19. Jun 18 Sell The Vanguard Group, Inc. Company 20. Feb 18 15. Jun 18 -1,673,054 A$3.25 A$-4,237,329
19. Jun 18 Buy The Vanguard Group, Inc. Company 09. Feb 18 14. Jun 18 1,357,750 A$3.23 A$4,371,835
27. Apr 18 Buy Mark Johnson Individual 27. Apr 18 27. Apr 18 10,000 A$2.19 A$21,900
27. Apr 18 Buy Margaret Zabel Individual 26. Apr 18 26. Apr 18 15,000 A$2.26 A$33,900
27. Apr 18 Buy Julie Cogin Individual 26. Apr 18 26. Apr 18 2,000 A$2.21 A$4,420
X
Management checks
We assess G8 Education's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

G8 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 -

What 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 -

G8 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 -

Read 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 -

Don'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 -

Did 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 -

G8 Education Limited (ASX:GEM): Time For A Financial Health Check

G8 Education Limited (ASX:GEM) is a small-cap stock with a market capitalization of AU$1.6b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Does G8 Education Limited's (ASX:GEM) February Stock Price Reflect Its Future Growth?

Looking at G8 Education Limited’s (ASX:GEM) fundamentals some investors are wondering if its last closing price of A$3.33 represents a good value for money for this high growth stock. … Let’s look into this by assessing GEM's expected growth over the next few years. … According to the analysts covering the company, the following few years should bring about good growth prospects for G8 Education

Simply Wall St -

What Kind Of Investor Owns Most Of G8 Education Limited (ASX:GEM)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

G8 Education Limited (ASX:GEM): Poised For Long Term Success?

In June 2018, G8 Education Limited (ASX:GEM) announced its earnings update. … the consensus outlook from analysts appear somewhat bearish, … the higher past 5-year average growth rate of 19%

Simply Wall St -

Company 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$1,338,520,402
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
Staff numbers
7,698
G8 Education employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 10:33
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
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.