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

Fundamentals

Flawless balance sheet and fair value.

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


Market Performance


7 Day Return

3.0%

GDC

0.1%

CA Real Estate

0.3%

CA Market


1 Year Return

-20.6%

GDC

16.2%

CA Real Estate

0.1%

CA Market

Return vs Industry: GDC underperformed the Canadian Real Estate industry which returned 16.2% over the past year.

Return vs Market: GDC underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

GDCIndustryMarket
7 Day3.0%0.1%0.3%
30 Day23.0%2.9%-2.5%
90 Day17.7%4.4%-1.4%
1 Year-20.6%-20.6%18.4%16.2%3.6%0.1%
3 Year23.9%-6.2%54.3%44.3%14.3%4.1%
5 Year-16.1%-39.3%79.5%43.4%25.0%6.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GDC (CA$2.73) is trading below our estimate of fair value (CA$8.05)

Significantly Undervalued: GDC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GDC is poor value based on its PE Ratio (44.5x) compared to the Real Estate industry average (14.3x).

PE vs Market: GDC is poor value based on its PE Ratio (44.5x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low 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 (0.6x) 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?

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDC's forecast earnings growth (24.4% per year) is above the savings rate (1.9%).

Earnings vs Market: GDC's earnings (24.4% per year) are forecast to grow faster than the Canadian market (13.2% per year).

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

Revenue vs Market: Insufficient data to determine if GDC's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if GDC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GDC's earnings have declined by -15.1% 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 (-80.4%) over the past year, making it difficult to compare to the Real Estate industry average (-29.6%).


Return on Equity

High ROE: GDC's Return on Equity (1.1%) is considered low.


Return on Assets

ROA vs Industry: GDC's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: GDC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Genesis Land Development's financial position?


Financial Position Analysis

Short Term Liabilities: GDC's short term assets (CA$247.0M) exceeds its short term liabilities (CA$22.6M)

Long Term Liabilities: GDC's short term assets (247.0M) exceeds its long term liabilities (30.1M)


Debt to Equity History and Analysis

Debt Level: GDC's debt to equity ratio (8.5%) is considered satisfactory

Reducing Debt: GDC's debt to equity ratio has reduced from 8.8% to 8.5% over the past 5 years.

Debt Coverage: GDC's debt is well covered by operating cash flow (138.1%).

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 13.828370x debt).


Next Steps

Dividend

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

8.79%

Current Dividend Yield


Dividend Yield vs Market

company8.8%marketbottom25%2.0%markettop25%6.0%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GDC's dividend (8.79%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: GDC's dividend (8.79%) is in the top 25% of dividend payers in the Canadian market (5.99%)

Stable Dividend: GDC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GDC's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Genesis Land Development's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Iain Stewart (58yo)

1.1yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

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


Management Age and Tenure

1.1yrs

Average Tenure

58yo

Average Age

Experienced Management: GDC's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

6.2yrs

Average Tenure

59yo

Average Age

Experienced Board: GDC's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: GDC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$4,59927 Sep 19
Smoothwater Capital Corporation
EntityCompany
Shares2,000
Max PriceCA$2.30
BuyCA$4,499,95318 Jul 19
Loudon Frank Owen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,273,800
Max PriceCA$3.53
BuyCA$2,270,71217 Jul 19
Smoothwater Capital Corporation
EntityCompany
Shares908,285
Max PriceCA$2.50
BuyCA$1,74514 May 19
Mark Mitchell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceCA$2.51
SellCA$26,02425 Apr 19
Milfam LLC
EntityCompany
Shares10,200
Max PriceCA$2.55
SellCA$56,02423 Apr 19
Milfam LLC
EntityCompany
Shares21,300
Max PriceCA$2.63
SellCA$26,14222 Apr 19
Milfam LLC
EntityCompany
Shares13,700
Max PriceCA$1.98
BuyCA$75019 Apr 19
Steven Glover
EntityIndividual
Role
Lead Director
Lead Director
Shares300
Max PriceCA$2.50
SellCA$127,69517 Apr 19
Milfam LLC
EntityCompany
Shares50,800
Max PriceCA$2.51
BuyCA$2,671,68516 Apr 19
Alimco Financial Corp, Asset Management Arm
EntityCompany
Shares840,850
Max PriceCA$3.18
SellCA$125,27315 Apr 19
Milfam LLC
EntityCompany
Shares48,700
Max PriceCA$2.57
BuyCA$38,49215 Apr 19
Arnie Stefaniuk
EntityIndividual
Shares15,000
Max PriceCA$2.61
BuyCA$1,50012 Apr 19
Steven Glover
EntityIndividual
Role
Lead Director
Lead Director
Shares600
Max PriceCA$2.50
BuyCA$59,33012 Apr 19
Parveshindera Sidhu
EntityIndividual
Role
Unit President
President of Genesis Builders Group Inc. & VP of Home Building
Shares23,000
Max PriceCA$2.61
BuyCA$40,88612 Apr 19
Iain Stewart
EntityIndividual
Role
Chief Executive Officer
President
Shares16,000
Max PriceCA$2.56
SellCA$1,28211 Apr 19
Milfam LLC
EntityCompany
Shares500
Max PriceCA$2.56
SellCA$568,54708 Apr 19
Milfam LLC
EntityCompany
Shares232,100
Max PriceCA$2.45
BuyCA$549,22508 Apr 19
Smoothwater Capital Corporation
EntityCompany
Shares224,000
Max PriceCA$2.47
BuyCA$2,54008 Apr 19
Mark Mitchell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$2.54
SellCA$180,17305 Apr 19
Milfam LLC
EntityCompany
Shares75,000
Max PriceCA$2.40
BuyCA$57,53105 Apr 19
Smoothwater Capital Corporation
EntityCompany
Shares22,600
Max PriceCA$2.55
BuyCA$45,65305 Apr 19
Iain Stewart
EntityIndividual
Role
Chief Executive Officer
President
Shares18,300
Max PriceCA$2.52
BuyCA$8,23515 Jan 19
Smoothwater Capital Corporation
EntityCompany
Shares2,700
Max PriceCA$3.05
SellCA$11,15808 Jan 19
Milfam LLC
EntityCompany
Shares3,600
Max PriceCA$3.10
SellCA$5,343,37026 Dec 18
Milfam LLC
EntityCompany
Shares1,681,700
Max PriceCA$3.18
BuyCA$2,671,68526 Dec 18
Milfam LLC
EntityCompany
Shares840,850
Max PriceCA$3.18

Ownership Breakdown


Management Team

  • Wayne King

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: CA$250.84k
  • Don Edwards (58yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Stephen Griggs (59yo)

    Executive Chairman

    • Tenure: 6.2yrs
    • Compensation: CA$769.10k
  • Iain Stewart (58yo)

    President

    • Tenure: 1.1yrs
    • Compensation: CA$1.13m
  • PS Sidhu

    President of Genesis Builders Group Inc. & VP of Home Building

    • Tenure: 0yrs
    • Compensation: CA$252.10k

Board Members

  • Loudon Frank Owen (62yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: CA$172.78k
  • Stephen Griggs (59yo)

    Executive Chairman

    • Tenure: 6.2yrs
    • Compensation: CA$769.10k
  • Iain Stewart (58yo)

    President

    • Tenure: 1.1yrs
    • Compensation: CA$1.13m
  • Steve Glover (66yo)

    Lead Director

    • Tenure: 4yrs
    • Compensation: CA$219.71k
  • Mark Mitchell (56yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$172.78k

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$115.152m
  • Shares outstanding: 42.18m
  • 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 D ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:34
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.