ASX:GDG

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Generation Development Group

Market Cap

AU$148.7m

Last Updated

2021/06/18 16:59 UTC

Data Sources

Company Financials +

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 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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GDG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

GDG

1.2%

AU Insurance

0.2%

AU Market


1 Year Return

29.0%

GDG

11.5%

AU Insurance

27.7%

AU Market

Return vs Industry: GDG exceeded the Australian Insurance industry which returned 11.5% over the past year.

Return vs Market: GDG exceeded the Australian Market which returned 27.7% over the past year.


Shareholder returns

GDGIndustryMarket
7 Day-2.3%1.2%0.2%
30 Day-4.0%8.3%5.3%
90 Day9.7%11.9%8.8%
1 Year34.7%29.0%14.0%11.5%31.8%27.7%
3 Year-24.3%-31.9%1.0%-11.4%33.7%17.7%
5 Year115.7%83.7%31.9%6.5%75.1%42.0%

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?

848.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GDG (A$0.85) is trading above our estimate of fair value (A$0.08)

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 (848.4x) compared to the Australian Insurance industry average (29.5x).

PE vs Market: GDG is poor value based on its PE Ratio (848.4x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: GDG is poor value based on its PEG Ratio (10.2x)


Price to Book Ratio

PB vs Industry: GDG is good value based on its PB Ratio (3x) compared to the AU Insurance industry average (3.3x).


Future Growth

How is Generation Development Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

83.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDG's forecast earnings growth (83.5% per year) is above the savings rate (1.9%).

Earnings vs Market: GDG's earnings (83.5% per year) are forecast to grow faster than the Australian market (13.5% 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 (-7.9% per year).

High Growth Revenue: GDG's revenue is forecast to decline over the next 3 years (-7.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDG's Return on Equity is forecast to be low in 3 years time (8.7%).


Past Performance

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

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDG has high quality earnings.

Growing Profit Margin: GDG's current net profit margins (0.3%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: GDG has become profitable over the past 5 years, growing earnings by 7.3% per year.

Accelerating Growth: GDG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GDG had negative earnings growth (-95.7%) over the past year, making it difficult to compare to the Insurance industry average (-19.2%).


Return on Equity

High ROE: GDG's Return on Equity (0.3%) is considered low.


Financial Health

How is Generation Development Group's financial position?


Financial Position Analysis

Short Term Liabilities: GDG's short term assets (A$1.5B) exceed its short term liabilities (A$14.6M).

Long Term Liabilities: GDG's short term assets (A$1.5B) exceed its long term liabilities (A$1.5B).


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


Dividend

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

2.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GDG's dividend (2.37%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: GDG's dividend (2.37%) is low compared to the top 25% of dividend payers in the Australian market (5.04%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (2008%), GDG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GDG's dividends in 3 years are forecast to be covered by earnings (74.1% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

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


Leadership Team

Experienced Management: GDG's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: GDG's board of directors are considered experienced (4.3 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$148.711m
  • Shares outstanding: 175.99m
  • Website: https://www.gendevelopmentgroup.com.au

Number of Employees


Location

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

Listings


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 Analysis2021/06/18 16:59
End of Day Share Price2021/06/18 00:00
Earnings2020/12/31
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.