TSX:GDC

Stock Analysis Report

Genesis Land Development

Executive Summary

Genesis Land Development Corp. engages in the acquisition, development, and sale of land, residential lots, and homes primarily in the greater Calgary area, Canada.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GDC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.3%

GDC

-2.0%

CA Real Estate

-4.8%

CA Market


1 Year Return

-39.8%

GDC

21.3%

CA Real Estate

0.1%

CA Market

Return vs Industry: GDC underperformed the Canadian Real Estate industry which returned 20.5% over the past year.

Return vs Market: GDC underperformed the Canadian Market which returned 0.5% over the past year.


Shareholder returns

GDCIndustryMarket
7 Day-5.3%-2.0%-4.8%
30 Day-18.2%2.4%-3.2%
90 Day-28.0%7.3%-1.0%
1 Year-39.8%-39.8%23.2%21.3%3.3%0.1%
3 Year-22.6%-35.9%48.5%40.2%12.9%2.7%
5 Year-26.2%-46.6%86.9%47.8%29.2%10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Genesis Land Development undervalued compared to its fair value and its price relative to the market?

32.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GDC (CA$1.8) is trading above our estimate of fair value (CA$0.89)

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


Price To Earnings Ratio

PE vs Industry: GDC is poor value based on its PE Ratio (32.1x) compared to the Real Estate industry average (13.4x).

PE vs Market: GDC is poor value based on its PE Ratio (32.1x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GDC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GDC is good value based on its PB Ratio (0.4x) compared to the CA Real Estate industry average (0.9x).


Next Steps

Future Growth

How is Genesis Land Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.9%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Genesis Land Development has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Genesis Land Development performed over the past 5 years?

-19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDC has high quality earnings.

Growing Profit Margin: GDC's current net profit margins (3.8%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: GDC's earnings have declined by -19.9% per year over the past 5 years.

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

Earnings vs Industry: GDC had negative earnings growth (-77.3%) over the past year, making it difficult to compare to the Real Estate industry average (-22.9%).


Return on Equity

High ROE: GDC's Return on Equity (1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Genesis Land Development's financial position?


Financial Position Analysis

Short Term Liabilities: GDC's short term assets (CA$265.5M) exceed its short term liabilities (CA$24.5M).

Long Term Liabilities: GDC's short term assets (CA$265.5M) exceed its long term liabilities (CA$45.8M).


Debt to Equity History and Analysis

Debt Level: GDC's debt to equity ratio (17.5%) is considered satisfactory.

Reducing Debt: GDC's debt to equity ratio has increased from 7.2% to 17.5% over the past 5 years.

Debt Coverage: GDC's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: GDC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GDC has a high level of physical assets or inventory.

Debt Coverage by Assets: GDC's debt is covered by short term assets (assets are 7.2x debt).


Next Steps

Dividend

What is Genesis Land Development's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.8%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GDC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GDC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GDC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GDC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GDC is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GDC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Iain Stewart (58yo)

1.4yrs

Tenure

CA$1,130,516

Compensation

Mr. Iain Stewart, B.Comm., ICD.D, CPA., C.A. was Co-founded Parkbridge Lifestyle Communities, Inc. and served as its Co-Chief Executive Officer since February 28, 2006 and also served as its President of W ...


CEO Compensation Analysis

Compensation vs Market: Iain's total compensation ($USD850.76K) is above average for companies of similar size in the Canadian market ($USD155.12K).

Compensation vs Earnings: Iain's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Griggs
Executive Chairman6.5yrsCA$769.10kno data
Iain Stewart
President1.4yrsCA$1.13m0.20% CA$153.7k
Wayne King
Chief Financial Officer2.8yrsCA$250.84kno data
Parveshindera Sidhu
President of Genesis Builders Group Inc. & VP of Home Building0yrsCA$252.10k0.13% CA$97.6k
Donald Edwards
Corporate Secretary0yrsno datano data

1.4yrs

Average Tenure

58yo

Average Age

Experienced Management: GDC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Griggs
Executive Chairman6.5yrsCA$769.10kno data
Iain Stewart
President1.4yrsCA$1.13m0.20% CA$153.7k
Loudon Frank Owen
Independent Director6.9yrsCA$172.78k3.02% CA$2.3m
Steven Glover
Lead Director4.3yrsCA$219.71k0.086% CA$65.3k
Mark Mitchell
Independent Director9.7yrsCA$172.78k12.5% CA$9.5m

6.5yrs

Average Tenure

59yo

Average Age

Experienced Board: GDC's board of directors are considered experienced (6.5 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

Genesis Land Development Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genesis Land Development Corp.
  • Ticker: GDC
  • Exchange: TSX
  • Founded: 1991
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: CA$75.890m
  • Shares outstanding: 42.16m
  • Website: https://www.genesisland.com

Number of Employees


Location

  • Genesis Land Development Corp.
  • 7315 – 8th Street NE
  • Calgary
  • Alberta
  • T2E 8A2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDCTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 1998
GNLA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1998

Biography

Genesis Land Development Corp. engages in the acquisition, development, and sale of land, residential lots, and homes primarily in the greater Calgary area, Canada. It operates through two segments, Land Development and Home Building. The Land Development segment acquires, plans, rezones, subdivides, services, and sells residential lots, and commercial and industrial lands to third-party developers and builders. The Home Building segment designs, constructs, and sells single-family homes and townhouses. The company was formerly known as Genesis Capital Corp. and changed its name to Genesis Land Development Corp. in October 1998. Genesis Land Development Corp. was founded in 1991 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:53
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.