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Gateway Lifestyle Group

ASX:GTY
Snowflake Description

Acceptable track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GTY
ASX
A$678M
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

Gateway Lifestyle Group engages in the development and operations of manufactured homes in Australia. The last earnings update was 100 days ago. More info.


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GTY Share Price and Events
7 Day Returns
0%
ASX:GTY
-2.1%
AU Real Estate
-1.6%
AU Market
1 Year Returns
2.3%
ASX:GTY
-16.1%
AU Real Estate
-1%
AU Market
GTY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gateway Lifestyle Group (GTY) 0% 0% -0.4% 2.3% -21.8% -
AU Real Estate -2.1% -15% -24.3% -16.1% 3.5% 38.3%
AU Market -1.6% -0.6% -9.1% -1% 40.3% 51%
1 Year Return vs Industry and Market
  • GTY outperformed the Real Estate industry which returned -16.1% over the past year.
  • GTY outperformed the Market in Australia which returned -1% over the past year.
Price Volatility
GTY
Industry
5yr Volatility vs Market

Value

 Is Gateway Lifestyle Group 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 Gateway Lifestyle Group 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 Gateway Lifestyle Group.

ASX:GTY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.8%

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:GTY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.8%
Equity Risk Premium S&P Global 7.2%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 0.48
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.484 (1 + (1- 30%) (37.98%))
0.613
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.77% + (0.8 * 7.23%)
8.55%

Discounted Cash Flow Calculation for ASX:GTY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gateway Lifestyle Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:GTY DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (AUD, Millions) 46.00 44.00 46.00 53.82 62.43
Source Analyst x1 Analyst x1 Analyst x1 Est @ 17%, capped from 40.55% Est @ 16%, capped from 40.55%
Present Value
Discounted (@ 8.55%)
42.37 37.34 35.96 38.76 41.41
Present value of next 5 years cash flows A$195.84
ASX:GTY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= A$62.43 × (1 + 2.77%) ÷ (8.55% – 2.77%)
A$1,109.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= A$1,109.93 ÷ (1 + 8.55%)5
A$736.29
ASX:GTY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= A$195.84 + A$736.29
A$932.14
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$932.14 / 304.21
A$3.06
ASX:GTY Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$3.06
Current discount Discount to share price of A$2.23
= -1 x (A$2.23 - A$3.06) / A$3.06
27.2%

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

Current Discount
Amount off the current price Gateway Lifestyle Group is available for.
Intrinsic value
27%
Share price is A$2.23 vs Future cash flow value of A$3.06
Current Discount Checks
For Gateway Lifestyle Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Gateway Lifestyle Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Gateway Lifestyle Group'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 Gateway Lifestyle Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gateway Lifestyle Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:GTY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in AUD A$0.19
ASX:GTY Share Price ** ASX (2018-10-18) in AUD A$2.23
Australia Real Estate Industry PE Ratio Median Figure of 23 Publicly-Listed Real Estate Companies 10.68x
Australia Market PE Ratio Median Figure of 559 Publicly-Listed Companies 15.25x

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

** Primary Listing of Gateway Lifestyle Group.

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

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

= 2.23 ÷ 0.19

11.54x

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

  • Gateway Lifestyle Group is overvalued based on earnings compared to the AU Real Estate industry average.
  • Gateway Lifestyle Group is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Gateway Lifestyle Group's expected growth come at a high price?
Raw Data
ASX:GTY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
4.4%per year
Australia Real Estate Industry PEG Ratio Median Figure of 10 Publicly-Listed Real Estate Companies 1.13x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.54x ÷ 4.4%

2.63x

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

  • Gateway Lifestyle Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Gateway Lifestyle Group's assets?
Raw Data
ASX:GTY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in AUD A$2.09
ASX:GTY Share Price * ASX (2018-10-18) in AUD A$2.23
Australia Real Estate Industry PB Ratio Median Figure of 36 Publicly-Listed Real Estate Companies 1.03x
Australia Market PB Ratio Median Figure of 1,643 Publicly-Listed Companies 1.73x
ASX:GTY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2.23 ÷ 2.09

1.07x

* Primary Listing of Gateway Lifestyle Group.

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

  • Gateway Lifestyle Group is overvalued based on assets compared to the AU Real Estate industry average.
X
Value checks
We assess Gateway Lifestyle Group'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 Real Estate 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 Real Estate industry average (and greater than 0)? (1 check)
  5. Gateway Lifestyle Group has a total score of 2/6, 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 Gateway Lifestyle Group expected to perform in the next 1 to 3 years based on estimates from 2 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
4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gateway Lifestyle Group expected to grow at an attractive rate?
  • Gateway Lifestyle Group's earnings growth is expected to exceed the low risk savings rate of 2.8%.
Growth vs Market Checks
  • Gateway Lifestyle Group's earnings growth is positive but not above the Australia market average.
  • Gateway Lifestyle Group's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:GTY Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:GTY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 4.4%
ASX:GTY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 3.5%
Australia Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 1.4%
Australia Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 2.7%

*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:GTY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:GTY Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 140 61 72 2
2020-06-30 136 44 51 2
2019-06-30 131 41 48 2
ASX:GTY Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-06-30 126 20 58
2018-03-31 127 22 59
2017-12-31 131 24 60
2017-09-30 125 28 60
2017-06-30 116 32 60
2017-03-31 114 37 50
2016-12-31 112 42 41
2016-09-30 113 37 40
2016-06-30 114 32 39
2016-03-31 85 1 13
2015-12-31 56 -29 -14
2015-09-30 31 -30 -22

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gateway Lifestyle Group's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • Gateway Lifestyle Group's revenue is expected to grow by 3.5% 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:GTY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Gateway Lifestyle Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GTY Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.17 0.17 0.17 1.00
2020-06-30 0.17 0.17 0.17 1.00
2019-06-30 0.16 0.16 0.16 1.00
ASX:GTY Past Financials Data
Date (Data in AUD Millions) EPS *
2018-06-30 0.19
2018-03-31 0.20
2017-12-31 0.20
2017-09-30 0.20
2017-06-30 0.20
2017-03-31 0.17
2016-12-31 0.14
2016-09-30 0.14
2016-06-30 0.15
2016-03-31 0.06
2015-12-31 -0.10
2015-09-30 -0.28

*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.
  • Gateway Lifestyle Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Gateway Lifestyle Group'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.
Gateway Lifestyle Group has a total score of 2/6, 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 Gateway Lifestyle Group 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 Gateway Lifestyle Group's growth in the last year to its industry (Real Estate).
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.
  • Gateway Lifestyle Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Gateway Lifestyle Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Gateway Lifestyle Group's 1-year earnings growth is negative, it can't be compared to the AU Real Estate industry average.
Earnings and Revenue History
Gateway Lifestyle Group'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 Gateway Lifestyle Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GTY Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 126.22 58.22 31.92
2018-03-31 126.95 59.25 31.16
2017-12-31 130.54 60.27 30.40
2017-09-30 124.84 59.99 30.62
2017-06-30 116.27 59.71 30.85
2017-03-31 114.37 50.22 31.00
2016-12-31 112.46 40.73 31.15
2016-09-30 113.13 39.83 28.91
2016-06-30 113.80 38.93 26.68
2016-03-31 85.11 12.70 21.79
2015-12-31 56.42 -13.53 16.91
2015-09-30 31.14 -22.33 11.42
2015-06-30 5.86 -31.13 5.94
2014-06-30 1.71 0.29 0.27

*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.
  • Gateway Lifestyle Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Gateway Lifestyle Group used its assets more efficiently than the AU Real Estate industry average last year based on Return on Assets.
  • Gateway Lifestyle Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Gateway Lifestyle Group'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 Real Estate 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.
Gateway Lifestyle Group has a total score of 3/6, 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 Gateway Lifestyle Group'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 Gateway Lifestyle Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gateway Lifestyle Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Gateway Lifestyle Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Gateway Lifestyle Group'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 Gateway Lifestyle Group Company Filings, last reported 4 months ago.

ASX:GTY Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 632.61 257.67 7.26
2018-03-31 632.61 257.67 7.26
2017-12-31 605.83 198.79 8.12
2017-09-30 605.83 198.79 8.12
2017-06-30 592.30 178.42 22.59
2017-03-31 592.30 178.42 22.59
2016-12-31 569.00 138.50 11.33
2016-09-30 569.00 138.50 11.33
2016-06-30 559.04 103.45 18.56
2016-03-31 559.04 103.45 18.56
2015-12-31 439.29 139.16 16.21
2015-09-30 439.29 139.16 16.21
2015-06-30 434.32 50.90 11.24
2014-06-30 18.53 17.17 1.62
  • Gateway Lifestyle Group's level of debt (40.7%) compared to net worth is high (greater than 40%).
  • Unable to establish if Gateway Lifestyle Group's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (7.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).
X
Financial health checks
We assess Gateway Lifestyle Group'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. Gateway Lifestyle Group has a total score of 2/6, 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 Gateway Lifestyle Group'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
4.08%
Current annual income from Gateway Lifestyle Group dividends. Estimated to be 5.33% next year.
If you bought A$2,000 of Gateway Lifestyle Group shares you are expected to receive A$82 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?
  • Gateway Lifestyle Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.69%).
  • Gateway Lifestyle Group's dividend is below the markets top 25% of dividend payers in Australia (6.04%).
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:GTY 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 2 Analyst Estimates (S&P Global) See Below
Australia Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 5.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 420 Stocks 4.7%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.7%
Australia Bottom 25% Dividend Yield 25th Percentile 2.7%
Australia Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:GTY Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.14 2.00
2020-06-30 0.11 1.00
2019-06-30 0.10 2.00
ASX:GTY Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-06-21 0.091 4.010
2017-12-13 0.094 4.773
2017-06-21 0.091 4.551
2016-09-19 0.111 5.178
2016-08-29 0.111 4.872
2016-02-10 0.106 3.817

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

  • Gateway Lifestyle Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Gateway Lifestyle Group has only been paying a dividend for 3 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Gateway Lifestyle Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x 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 Gateway Lifestyle Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - 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 Gateway Lifestyle Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gateway Lifestyle Group has a total score of 3/6, 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 Gateway Lifestyle Group'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.
  • Gateway Lifestyle Group has no CEO, or we have no data on them.
Management Team Tenure

Average tenure of the Gateway Lifestyle Group management team in years:

1.8
Average Tenure
  • The average tenure for the Gateway Lifestyle Group management team is less than 2 years, this suggests a new team.
Management Team

Owen Kemp

TITLE
Chief Financial Officer
COMPENSATION
A$502K
TENURE
1.8 yrs

Leanne Nolan

TITLE
General Counsel

Tonia Ivanni

TITLE
Head of Sales and Marketing
TENURE
4.8 yrs

Kodi Krishnan

TITLE
Human Resources Manager

Kevin Tucker

TITLE
Company Secretary & Director
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure of the Gateway Lifestyle Group board of directors in years:

0.1
Average Tenure
  • The average tenure for the Gateway Lifestyle Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Pat Zilis

TITLE
Chairman
TENURE
0.1 yrs

Kevin Tucker

TITLE
Company Secretary & Director
TENURE
0.1 yrs

Stuart Strong

TITLE
Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • Gateway Lifestyle Group insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
19. Jul 18 Sell Realindex Investments Pty Limited Company 26. Jun 18 09. Jul 18 -21,175 A$2.33 A$-49,396
22. Jun 18 Buy Realindex Investments Pty Limited Company 20. Jun 18 21. Jun 18 21,366 A$2.16 A$46,122
06. Jun 18 Sell Realindex Investments Pty Limited Company 20. Mar 18 17. May 18 -18,656 A$1.92 A$-35,895
19. Jul 18 Buy Realindex Investments Pty Limited Company 26. Jun 18 16. Jul 18 350,434 A$2.38 A$834,853
06. Jun 18 Buy Realindex Investments Pty Limited Company 06. Mar 18 22. May 18 253,278 A$1.93 A$488,428
19. Jun 18 Buy Realindex Investments Pty Limited Company 13. Jun 18 18. Jun 18 53,421 A$2.16 A$115,353
26. Jul 18 Buy Realindex Investments Pty Limited Company 23. Jul 18 23. Jul 18 2,134 A$2.27 A$4,844
15. Oct 18 Sell Challenger Limited Company 31. May 18 31. May 18 -102,351 A$1.80 A$-183,966
15. Oct 18 Buy Challenger Limited Company 30. Nov 17 06. Feb 18 51,400 A$2.13 A$105,948
18. Oct 18 Sell Massachusetts Financial Services Company Company 17. Apr 18 16. Oct 18 -1,805,902 A$2.25 A$-4,038,376
18. Oct 18 Buy Massachusetts Financial Services Company Company 10. Apr 18 18. Apr 18 580,044 A$1.94 A$1,037,239
15. Oct 18 Buy Hometown Australia Holdings Pty Ltd Company 10. Oct 18 15. Oct 18 6,274,121 A$2.25 A$14,100,056
09. Oct 18 Buy Hometown Australia Holdings Pty Ltd Company 09. Oct 18 09. Oct 18 3,304,437 A$2.25 A$7,434,984
08. Oct 18 Buy Hometown Australia Holdings Pty Ltd Company 08. Oct 18 08. Oct 18 28,232,115 A$2.25 A$63,522,257
07. Oct 18 Buy Hometown Australia Holdings Pty Ltd Company 10. May 18 10. May 18 39,049,823 A$2.25 A$87,862,086
04. Oct 18 Buy Hometown Australia Holdings Pty Ltd Company 04. Oct 18 04. Oct 18 26,481,124 A$2.25 A$59,582,513
03. Oct 18 Buy Hometown Australia Holdings Pty Ltd Company 03. Oct 18 03. Oct 18 3,262,965 A$2.25 A$7,341,670
01. Oct 18 Buy Hometown Australia Holdings Pty Ltd Company 01. Oct 18 01. Oct 18 28,187,656 A$2.25 A$63,422,209
30. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 28. Sep 18 28. Sep 18 19,098,125 A$2.25 A$42,970,768
27. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 27. Sep 18 27. Sep 18 24,333,240 A$2.25 A$54,749,803
26. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 26. Sep 18 26. Sep 18 26,019,810 A$2.25 A$58,544,567
25. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 25. Sep 18 25. Sep 18 7,993,344 A$2.25 A$17,985,022
24. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 18. Sep 18 24. Sep 18 6,358,700 A$2.26 A$14,302,400
16. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 12. Sep 18 14. Sep 18 3,370,321 A$2.25 A$7,585,756
11. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 10. Sep 18 11. Sep 18 5,665,158 A$2.26 A$12,764,943
09. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 06. Sep 18 07. Sep 18 4,043,349 A$2.27 A$9,136,856
05. Sep 18 Buy Hometown Australia Holdings Pty Ltd Company 31. Aug 18 05. Sep 18 3,352,694 A$2.26 A$7,558,499
30. Aug 18 Buy Hometown Australia Holdings Pty Ltd Company 13. Aug 18 30. Aug 18 5,097,860 A$2.28 A$11,530,069
13. Jun 18 Buy Hometown Australia Holdings Pty Ltd Company 08. Jun 18 12. Jun 18 53,786,461 A$1.81 A$553,153
23. Jul 18 Buy Hometown Australia Holdings Pty Ltd Company 13. Jun 18 25. Jun 18 28,432,977 A$2.30 A$65,207,329
15. Oct 18 Sell WaveStone Capital Pty Limited Company 09. Aug 18 11. Oct 18 -1,668,451 A$2.26 A$-3,771,077
15. Oct 18 Buy WaveStone Capital Pty Limited Company 02. Jan 18 06. Mar 18 1,172,072 A$1.80 A$2,104,496
08. Oct 18 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 04. Oct 18 04. Oct 18 -11,697,519 A$2.25 A$-26,319,411
08. Oct 18 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 27. Aug 18 04. Oct 18 -3,292,545 A$2.30 A$-7,356,729
08. Oct 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 29. Aug 18 04. Oct 18 1,622,774 A$2.25 A$3,630,080
04. Oct 18 Sell Justin Epstein Individual 04. Oct 18 04. Oct 18 -110,723 A$2.25 A$-249,127
03. Oct 18 Sell Rachel Launders Individual 30. Sep 18 30. Sep 18 -46,150 A$2.25 A$-103,837
01. Oct 18 Buy Stephen Newton Individual 28. Sep 18 28. Sep 18 41,610 A$2.25 A$93,622
01. Oct 18 Sell Andrew Fay Individual 28. Sep 18 28. Sep 18 -329,163 A$2.25 A$-740,617
28. Sep 18 Sell Andrew Love Individual 27. Sep 18 27. Sep 18 -465,581 A$2.25 A$-1,047,557
26. Sep 18 Sell UBS Asset Management Company 21. Sep 18 24. Sep 18 -33,199 A$2.25 A$-74,579
26. Sep 18 Buy UBS Asset Management Company 21. Sep 18 24. Sep 18 207,277 A$2.24 A$464,953
24. Sep 18 Sell UBS Asset Management Company 29. Aug 18 20. Sep 18 -703,291 A$2.24 A$-1,573,794
24. Sep 18 Buy UBS Asset Management Company 29. Aug 18 20. Sep 18 3,775,281 A$2.24 A$8,447,439
26. Sep 18 Sell Trent Ottawa Individual 24. Sep 18 24. Sep 18 -10,825,878 A$2.25 A$-24,358,231
30. Aug 18 Sell UBS Asset Management Company 08. Aug 18 28. Aug 18 -4,186,007 A$2.25 A$-9,384,460
30. Aug 18 Buy UBS Asset Management Company 08. Aug 18 28. Aug 18 8,964,495 A$2.24 A$20,077,486
28. Aug 18 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 17. Jul 18 22. Aug 18 -1,008,486 A$2.28 A$-2,281,599
28. Aug 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 17. Jul 18 24. Aug 18 5,154,583 A$2.29 A$11,621,682
29. Aug 18 Sell Merrill Lynch & Co. Inc., Banking Investments Company 22. Aug 18 27. Aug 18 -1,873,398 A$2.23 A$-4,182,602
29. Aug 18 Buy Merrill Lynch & Co. Inc., Banking Investments Company 22. Aug 18 27. Aug 18 149,851 A$2.23 A$334,239
23. Aug 18 Sell Merrill Lynch & Co. Inc., Banking Investments Company 23. Apr 18 21. Aug 18 -8,159,272 A$2.18 A$-17,804,504
23. Aug 18 Buy Merrill Lynch & Co. Inc., Banking Investments Company 23. Apr 18 21. Aug 18 11,251,408 A$2.30 A$24,703,399
09. Aug 18 Sell UBS Asset Management Company 13. Jun 18 07. Aug 18 -10,770,017 A$2.27 A$-24,345,967
09. Aug 18 Buy UBS Asset Management Company 13. Jun 18 07. Aug 18 13,443,841 A$2.29 A$30,727,899
18. Jul 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 19. Mar 18 16. Jul 18 23,032,339 A$2.23 A$51,379,304
18. Jul 18 Buy Morgan Stanley Investment Management Inc. Company 19. Jun 18 19. Jun 18 1,050 A$2.18 A$2,289
19. Jul 18 Sell Colonial First State Asset Management (Australia) Limited Company 28. Jun 18 18. Jul 18 -1,051,516 A$2.31 A$-2,419,202
19. Jul 18 Buy Colonial First State Asset Management (Australia) Limited Company 03. Jul 18 18. Jul 18 33,837 A$2.34 A$79,259
27. Jun 18 Sell Perennial Value Management Limited Company 04. Jun 18 25. Jun 18 -27,197,110 A$2.29 A$-62,386,431
27. Jun 18 Buy Perennial Value Management Limited Company 23. May 18 23. May 18 245,615 A$1.73 A$425,233
22. Jun 18 Sell Colonial First State Asset Management (Australia) Limited Company 19. Jun 18 21. Jun 18 -3,060,541 A$2.16 A$-6,621,494
19. Jun 18 Buy Colonial First State Asset Management (Australia) Limited Company 06. Jun 18 07. Jun 18 582,013 A$1.76 A$1,023,310
14. Jun 18 Sell UBS Asset Management Company 13. Feb 18 12. Jun 18 -7,480,688 A$1.90 A$-14,190,774
14. Jun 18 Buy UBS Asset Management Company 13. Feb 18 12. Jun 18 13,714,371 A$1.91 A$25,713,429
06. Jun 18 Sell Colonial First State Asset Management (Australia) Limited Company 02. Mar 18 18. May 18 -2,809,708 A$1.98 A$-5,438,811
06. Jun 18 Buy Colonial First State Asset Management (Australia) Limited Company 07. Mar 18 05. Jun 18 6,214,995 A$1.95 A$11,348,332
24. May 18 Sell Perennial Value Management Limited Company 28. Feb 18 09. Mar 18 -737,983 A$1.99 A$-1,411,877
24. May 18 Buy Perennial Value Management Limited Company 27. Mar 18 22. May 18 4,100,504 A$1.99 A$7,293,451
03. May 18 Buy Andrew Fay Individual 03. May 18 03. May 18 100,000 A$1.79 A$179,000
10. Apr 18 Sell Massachusetts Financial Services Company Company 12. Feb 18 03. Apr 18 -108,734 A$1.40 A$-152,434
10. Apr 18 Buy Massachusetts Financial Services Company Company 29. Jan 18 09. Apr 18 3,348,111 A$1.96 A$5,136,405
02. Mar 18 Buy Andrew Love Individual 02. Mar 18 02. Mar 18 50,000 A$1.95 A$97,380
01. Mar 18 Sell Perennial Value Management Limited Company 27. Feb 18 27. Feb 18 -8,225,308 A$2.00 A$-16,413,893
01. Mar 18 Buy Perennial Value Management Limited Company 14. Feb 18 23. Feb 18 264,692 A$2.05 A$519,666
01. Mar 18 Sell Colonial First State Asset Management (Australia) Limited Company 17. Oct 17 28. Feb 18 -3,005,679 A$2.06 A$-6,187,191
01. Mar 18 Buy Colonial First State Asset Management (Australia) Limited Company 23. Oct 17 22. Feb 18 700,865 A$2.15 A$1,457,415
28. Feb 18 Sell Trent Ottawa Individual 27. Feb 18 28. Feb 18 -2,250,000 A$2.01 A$-4,309,193
19. Feb 18 Buy Perennial Value Management Limited Company 06. Feb 18 13. Feb 18 3,022,869 A$1.95 A$5,853,868
07. Feb 18 Sell Massachusetts Financial Services Company Company 25. Oct 17 12. Jan 18 -29,313 A$2.15 A$-60,297
07. Feb 18 Buy Massachusetts Financial Services Company Company 26. Sep 17 29. Dec 17 2,193,650 A$3.52 A$4,501,915
07. Feb 18 Sell Perennial Value Management Limited Company 05. Feb 18 05. Feb 18 -3,389,603 A$1.95 A$-6,599,567
07. Feb 18 Buy Perennial Value Management Limited Company 29. Jan 18 01. Feb 18 204,643 A$2.09 A$427,572
29. Jan 18 Sell Perennial Value Management Limited Company 02. Nov 17 03. Nov 17 -367,277 A$2.00 A$-734,489
29. Jan 18 Buy Perennial Value Management Limited Company 07. Nov 17 24. Jan 18 3,408,394 A$2.08 A$6,940,712
X
Management checks
We assess Gateway Lifestyle Group'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. Gateway Lifestyle Group 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

External News
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Simply Wall St News

Should Gateway Lifestyle Group (ASX:GTY) Be Part Of Your Portfolio?

Over the past 3 years, Gateway Lifestyle Group (ASX:GTY) has returned an average of 4.00% per year to shareholders in terms of dividend yield. … Does Gateway Lifestyle Group tick all the boxes of a great dividend stock? … See our latest analysis for Gateway Lifestyle Group

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Is Gateway Lifestyle Group's (ASX:GTY) Balance Sheet Strong Enough To Weather A Storm?

However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

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How Did Gateway Lifestyle Group's (ASX:GTY) 9.95% ROE Fare Against The Industry?

and looking to gauge the potential return on investment in Gateway Lifestyle Group (ASX:GTY). … With an ROE of 9.95%, Gateway Lifestyle Group (ASX:GTY) returned in-line to its own industry which delivered 11.22% over the past year. … But what is more interesting is whether GTY can sustain or improve on this level of return

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Gateway Lifestyle Group (ASX:GTY): Are Forecast Margins sustainable?

As analysts expect … Gateway Lifestyle Group (ASX:GTY) to … in earnings of -13.78%

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Is Gateway Lifestyle Group (ASX:GTY) A Smart Pick For Income Investors?

See our latest analysis for Gateway Lifestyle Group Here's how I find good dividend stocks When researching a dividend stock, I always follow the following screening criteria: Is their annual yield among the top 25% of dividend payers? … ASX:GTY Historical Dividend Yield May 17th 18 How well does Gateway Lifestyle Group fit our criteria? … Compared to its peers, Gateway Lifestyle Group has a yield of 5.47%, which is high for Real Estate stocks.Next Steps: With these dividend metrics in mind, I definitely rank Gateway Lifestyle Group as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy.

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What Do Analysts Think About Gateway Lifestyle Group's (ASX:GTY) Profit Margin?

To get a preliminary understanding, I will try to evaluate Gateway Lifestyle Group's margin behaviour so investors can evaluate the revenue and cost drivers behind future earnings projections and understand how they may impact on returns compared to the industry. … Margin Calculation for GTY Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 60.27 Million ÷ 154.68 Million = 38.97% Gateway Lifestyle Group's margin has expanded in the past five years, as a result of a 78.86% average growth in net income exceeding a 56.06% average growth in revenue, which means that the previous increase in revenue has coincided with a larger portion falling to the bottom line. … Using Gateway Lifestyle Group's margin expectations as a way to understand projections for the future It is expected that margins will keep on expanding, with annual revenue growth tipped at 2.05% and 2.95% earnings growth expected annually.

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What does Gateway Lifestyle Group's (ASX:GTY) Balance Sheet Tell Us About Its Future?

How does GTY’s operating cash flow stack up against its debt? … With this growth in debt, GTY's cash and short-term investments stands at AU$22.59M for investing into the business. … Moreover, GTY has produced AU$31.74M in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 17.79%, indicating that GTY’s current level of operating cash is not high enough to cover debt.

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Why You Should Be Bearish On Gateway Lifestyle Group (ASX:GTY)

A consensus of 5 AU real estate management and development analysts covering the stock indicates that its revenue level is expected to decline by -6.21% by 2021, negatively impacting earnings, with an upcoming bottom-line growth rate expectation of -20.90%. … Given its debt level is relatively minimal (12.27% of equity), the fact that GTY's cash only covers a mere 12.27% of debt makes me worry. … However, comparing GTY's current share price to its peers based on its industry and earnings level, it's trading at a fair value, with a PE ratio of 9.83x vs.

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With An ROE Of 9.95%, Has Gateway Lifestyle Group's (ASX:GTY) Management Done A Good Job?

View our latest analysis for Gateway Lifestyle Group Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of Gateway Lifestyle Group’s profit relative to its shareholders’ equity. … For now, let’s just look at the cost of equity number for Gateway Lifestyle Group, which is 8.55%. … While Gateway Lifestyle Group exhibits a weak ROE against its peers, its returns are sufficient enough to cover its cost of equity.

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Breaking Down Gateway Lifestyle Group's (ASX:GTY) Ownership Structure

Check out our latest analysis for Gateway Lifestyle Group ASX:GTY Ownership_summary Jan 29th 18 Institutional Ownership GTY's 78.64% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … Insider Ownership I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital. … However, an ownership of this size may be relatively insignificant, meaning that these shareholders may not have the potential to influence GTY's business strategy.

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Company Info

Map
Description

Gateway Lifestyle Group engages in the development and operations of manufactured homes in Australia. As of June 30, 2018, it had 58 residential land lease communities primarily in New South Wales, Queensland, Victoria, South Australia, and the Australian Capital Territory. The company was founded in 2009 and is headquartered in Sydney, Australia. As of October 15, 2018, Gateway Lifestyle Group (ASX:GTY) operates as a subsidiary of Hometown America Communities Limited Partnership.

Details
Name: Gateway Lifestyle Group
GTY
Exchange: ASX
Founded: 2009
A$678,380,441
304,206,476
Website: http://www.gatewaylifestyle.com.au
Address: Gateway Lifestyle Group
117 Clarence Street,
Suite C,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX GTY Stapled Securities Australian Securities Exchange AU AUD 11. Jun 2015
Number of employees
Current staff
Staff numbers
297
Gateway Lifestyle Group employees.
Industry
Diversified Real Estate Activities
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/27 06:37
End of day share price update: 2018/10/18 00:00
Last estimates confirmation: 2018/11/04
Last earnings filing: 2018/08/19
Last earnings reported: 2018/06/30
Last annual earnings reported: 2018/06/30


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.