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. More Details


Snowflake Analysis

Flawless balance sheet with high 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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GDG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

3.8%

GDG

1.4%

AU Insurance

1.3%

AU Market


1 Year Return

-2.2%

GDG

-20.8%

AU Insurance

-1.7%

AU Market

Return vs Industry: GDG exceeded the Australian Insurance industry which returned -20.7% over the past year.

Return vs Market: GDG matched the Australian Market which returned -1.8% over the past year.


Shareholder returns

GDGIndustryMarket
7 Day3.8%1.4%1.3%
30 Day3.1%17.2%10.4%
90 Day-15.1%4.0%8.8%
1 Year2.8%-2.2%-18.6%-20.8%1.7%-1.7%
3 Year-40.4%-46.0%-5.6%-17.2%23.1%7.9%
5 Year66.7%40.6%17.6%-6.7%57.2%26.0%

Long-Term 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?

4.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GDG (A$0.68) is trading above our estimate of fair value (A$0.06)

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


Price To Earnings Ratio

PE vs Industry: GDG is unprofitable, so we can't compare its PE Ratio to the AU Insurance industry average.

PE vs Market: GDG 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 GDG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GDG is overvalued based on its PB Ratio (4.9x) compared to the AU Insurance industry average (3x).


Next Steps

Future Growth

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

95.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: GDG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GDG's is expected to become profitable in the next 3 years.

Revenue vs Market: GDG's revenue (58.8% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: GDG's revenue (58.8% per year) is forecast to grow faster than 20% 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?

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDG is currently unprofitable.

Growing Profit Margin: GDG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GDG is unprofitable, but has reduced losses over the past 5 years at a rate of 27.1% per year.

Accelerating Growth: Unable to compare GDG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GDG is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-33.8%).


Return on Equity

High ROE: GDG has a negative Return on Equity (-9.42%), as it is currently unprofitable.


Next Steps

Financial Health

How is Generation Development Group's financial position?


Financial Position Analysis

Short Term Liabilities: GDG's short term assets (A$1.3B) exceed its short term liabilities (A$10.4M).

Long Term Liabilities: GDG's short term assets (A$1.3B) exceed 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 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 (2.05%).

High Dividend: GDG's dividend (2.96%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


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: GDG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: GDG's dividends in 3 years are forecast to be covered by earnings (57.7% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Terence Wong
Chief Financial Officer2.67yrsAU$456.59kno data
Grant Hackett
CEO & MD of Generation Life0.75yrAU$656.98k0.40%
A$ 471.0k
Felipe Araujo
General Manager of Distribution3.08yrsAU$849.23k0.00057%
A$ 676.8
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

2.7yrs

Average Tenure

Experienced Management: GDG's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Bessemer
Non-Executive Director8.75yrsno data7.42%
A$ 8.8m
Robert Coombe
Non-Executive Chairman3.33yrsno data4.93%
A$ 5.9m
Jonathan Tooth
Non-Executive Director8.5yrsno data5.27%
A$ 6.3m
John Wheeler
Non-Executive Director3.67yrsno data2.84%
A$ 3.4m
Christopher Freeman
Independent Non-Executive Chairman of Generation Life3yrsno datano data

3.7yrs

Average Tenure

63yo

Average Age

Experienced Board: GDG's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GDG 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 diluted in the past year, with total shares outstanding growing by 40.1%.


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$118.731m
  • Shares outstanding: 175.90m
  • Website: https://www.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

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 adminis...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 07:05
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.