ASX:GDG

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Generation Development Group

Executive Summary

Generation Development Group Limited manages and markets life insurance and life investment products and services to the retail sector in Australia.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

Share Price & News

How has Generation Development Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GDG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.2%

GDG

2.0%

AU Insurance

4.0%

AU Market


1 Year Return

17.4%

GDG

-20.1%

AU Insurance

-7.0%

AU Market

Return vs Industry: GDG exceeded the Australian Insurance industry which returned -20.1% over the past year.

Return vs Market: GDG exceeded the Australian Market which returned -7% over the past year.


Shareholder returns

GDGIndustryMarket
7 Day-2.2%2.0%4.0%
30 Day5.5%11.9%12.2%
90 Day18.4%-12.0%-2.5%
1 Year21.6%17.4%-15.9%-20.1%-3.1%-7.0%
3 Year4.4%-3.6%-3.9%-17.0%19.0%3.3%
5 Year81.2%53.4%13.7%-11.2%33.9%5.0%

Price Volatility Vs. Market

How volatile is Generation Development Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Generation Development Group undervalued compared to its fair value and its price relative to the market?

26.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GDG (A$0.68) is trading above our estimate of fair value (A$0.24)

Significantly Below Fair Value: GDG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GDG is poor value based on its PE Ratio (26.2x) compared to the Insurance industry average (17.7x).

PE vs Market: GDG is poor value based on its PE Ratio (26.2x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: GDG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: GDG is overvalued based on its PB Ratio (4.6x) compared to the AU Insurance industry average (2.5x).


Next Steps

Future Growth

How is Generation Development Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

33.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDG's forecast earnings growth (33.3% per year) is above the savings rate (2.3%).

Earnings vs Market: GDG's earnings (33.3% per year) are forecast to grow faster than the Australian market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GDG's revenue is expected to decline over the next 3 years (-57.5% per year).

High Growth Revenue: GDG's revenue is forecast to decline over the next 3 years (-57.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GDG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Generation Development Group performed over the past 5 years?

47.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDG has high quality earnings.

Growing Profit Margin: GDG's current net profit margins (2%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: GDG's earnings have grown significantly by 47.2% per year over the past 5 years.

Accelerating Growth: GDG's earnings growth over the past year (0.3%) is below its 5-year average (47.2% per year).

Earnings vs Industry: GDG earnings growth over the past year (0.3%) underperformed the Insurance industry 8.2%.


Return on Equity

High ROE: GDG's Return on Equity (17.5%) is considered low.


Next Steps

Financial Health

How is Generation Development Group's financial position?


Financial Position Analysis

Short Term Liabilities: GDG's short term assets (A$24.0M) exceed its short term liabilities (A$2.4M).

Long Term Liabilities: GDG's short term assets (A$24.0M) do not cover its long term liabilities (A$1.3B).


Debt to Equity History and Analysis

Debt Level: GDG is debt free.

Reducing Debt: GDG has not had any debt for past 5 years.

Debt Coverage: GDG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GDG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Generation Development Group's current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GDG's dividend (2.96%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: GDG's dividend (2.96%) is low compared to the top 25% of dividend payers in the Australian market (6.45%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GDG has been paying a dividend for less than 10 years.

Growing Dividend: GDG's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.7%), GDG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GDG's dividends in 3 years are forecast to be covered by earnings (58% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Generation Development Group has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Coombe
Executive Chairman2.92yrsAU$84.18k6.05% A$5.1m
Terence Wong
Chief Financial Officer2.25yrsAU$340.22kno data
Grant Hackett
CEO & MD of Generation Life0.33yrAU$558.50k0.40% A$337.5k
Amanda Gawne
Head of Legal & Complianceno datano datano data
Robert Thomson
Head of Equity Capital Markets Divisionno datano datano data
Maxwell James Green
Head of Sydney & Director of Corporate Financeno datano datano data
Gordon Joseph
Group Financial Controllerno datano datano data
Felipe Araujo
Head of National Key Accounts - Generation Life2.67yrsno datano data

2.3yrs

Average Tenure

Experienced Management: GDG's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Coombe
Executive Chairman2.92yrsAU$84.18k6.05% A$5.1m
William Bessemer
Non-Executive Director8.33yrsno data10.08% A$8.6m
Jonathan Tooth
Non-Executive Director8.08yrsno data7.15% A$6.1m
John Wheeler
Non-Executive Director3.25yrsno data5.97% A$5.1m
Christopher Freeman
Independent Non-Executive Chairman of Generation Life2.58yrsno datano data

3.3yrs

Average Tenure

62yo

Average Age

Experienced Board: GDG's board of directors are considered experienced (3.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Generation Development Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Generation Development Group Limited
  • Ticker: GDG
  • Exchange: ASX
  • Founded: 1991
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: AU$84.810m
  • Shares outstanding: 125.64m
  • Website: https://gendevelopmentgroup.com.au

Number of Employees


Location

  • Generation Development Group Limited
  • 15 William Street
  • Level 12
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2007
GDGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2007
GDGASX (Australian Securities Exchange)NPVAUAUDMar 2018

Biography

Generation Development Group Limited manages and markets life insurance and life investment products and services to the retail sector in Australia. It offers investment bond product solutions; and administration services, including unit pricing, fund valuation, investment and fund accounting, fund administration, and business registry. The company was formerly known as Austock Group Limited and changed its name to Generation Development Group Limited in March 2018. Generation Development Group Limited was founded in 1991 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 10:44
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.