G8 EDUCATION LIMITED (GEM)
Share Price Analysis and Chart

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GEM - G8 EDUCATION LIMITED

FNArena Sector : Childcare
Year End: December
GICS Industry Group : Consumer Services
Debt/EBITDA: 3.27
Index: ASX300 | ALL-ORDS

G8 Education is Australia's largest provider of early childhood care and education services. It operates over 470 childcare centres across Australia. Founded in 2006, it listed on the ASX in 2007.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$1.32

02 Dec
2024

-0.035

OPEN

$1.37

-2.58%

HIGH

$1.38

1,271,232

LOW

$1.31

TARGET
$1.365 3.4% upside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
CQE . MFD . NDO .
FNARENA'S MARKET CONSENSUS FORECASTS
GEM: 1
Title FY22
Actual		 FY23
Actual		 FY24
Forecast		 FY25
Forecast
EPS (cps) xxx 6.9 9.0 xxx
DPS (cps) xxx 4.5 5.1 xxx
EPS Growth xxx 58.0% 29.3% xxx
DPS Growth xxx 50.0% 13.3% xxx
PE Ratio xxx N/A 15.0 xxx
Dividend Yield xxx N/A 3.8% xxx
Div Pay Ratio(%) xxx 65.0% 57.0% xxx

Dividend yield today if purchased 3 years ago: 4.29%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 3.35

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 06/09 - ex-div 2c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201820192020202120222023
EPS Basic xxxxxxxxxxxxxxx6.9
DPS All xxxxxxxxxxxxxxx4.5
Sales/Revenue xxxxxxxxxxxxxxx983.4 M
Book Value Per Share xxxxxxxxxxxxxxx111.9
Net Operating Cash Flow xxxxxxxxxxxxxxx201.5 M
Net Profit Margin xxxxxxxxxxxxxxx5.70 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201820192020202120222023
Return on Capital Employed xxxxxxxxxxxxxxx6.27 %
Return on Invested Capital xxxxxxxxxxxxxxx3.60 %
Return on Assets xxxxxxxxxxxxxxx2.83 %
Return on Equity xxxxxxxxxxxxxxx6.27 %
Return on Total Capital xxxxxxxxxxxxxxx8.20 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx129.5 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201820192020202120222023
Short-Term Debt xxxxxxxxxxxxxxx83 M
Long Term Debt xxxxxxxxxxxxxxx696 M
Total Debt xxxxxxxxxxxxxxx778 M
Goodwill - Gross xxxxxxxxxxxxxxx1,197 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx40 M
Price To Book Value xxxxxxxxxxxxxxx1.05

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201820192020202120222023
Capex xxxxxxxxxxxxxxx44.5 M
Capex % of Sales xxxxxxxxxxxxxxx4.53 %
Cost of Goods Sold xxxxxxxxxxxxxxx743 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx106 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx1 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.5

No. Of Recommendations

2
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Macquarie

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
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UBS

23/08/2024

3

Neutral

$1.35

2.27%

UBS observes G8 Education delivered cost control amid a 2.4% blended price increase in the first half that de-risks a large portion of the full year forecast EBIT growth.

On the downside, occupancy is tracking softer, which potentially negates these benefits flowing through to the second half.

The broker still believes 2024 EBIT expectations are achievable and the recently-announced 15% pay increase funded by the government should improve labour availability in the sector. Neutral maintained. Target is raised to $1.35 from $1.25.

FORECAST
UBS forecasts a full year FY24 EPS of 9.00 cents.
UBS forecasts a full year FY25 EPS of 11.00 cents.
Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

2

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Canaccord Genuity

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Moelis

27/08/2024

1

Buy

$1.46

10.61%

Moelis observes the G8 Education FY24 results were lower than anticipated as cost-of-living pressures impacted on occupancy growth in the 2Q of 2024.

Management is expected to continue to look for efficiency gains with group occupancy at 72.7% as at August 16, down -0.1% on the previous corresponding period.

A share buyback was announced, up to 5% of the issued capital. Buy rated with $1.46 target price.

FORECAST
Moelis forecasts a full year FY24 dividend of 5.10 cents and EPS of 8.40 cents.
Moelis forecasts a full year FY25 dividend of 5.50 cents and EPS of 9.70 cents.
Access Extra Coverage Research History >

GEM STOCK CHART

FNArena News on GEM

1
Australian Broker Call *Extra* Edition – Aug 28, 2024

Aug 28 2024 - Daily Market Reports
2
Australian Broker Call *Extra* Edition – Aug 27, 2024

Aug 27 2024 - Daily Market Reports
3
FNArena Corporate Results Monitor – 23-08-2024

Aug 23 2024 - Australia
4
Weekly Ratings, Targets, Forecast Changes – 05-07-24

Jul 08 2024 - Weekly Reports
5
In Brief: Retail, Travel, Top Dividends, Banks & Telstra

May 24 2024 - Weekly Reports

Latest Childcare News

1
More Fun In The Sandpit

Jun 26 2020 - Weekly Reports
2
Treasure Chest: G8 Education Faces Difficulties

Jul 16 2019 - Treasure Chest
3
Strong Growth Expected From Think Childcare

May 29 2019 - Small Caps
4
Turning Around G8 Education

Jan 30 2019 - Australia
5
Better 2019 Expected From G8 Education

Nov 20 2018 - Australia
6
Think Upside

Nov 13 2018 - Small Caps
7
Bumper Supply Constraining Childcare Profits

Jun 20 2018 - Australia
8
G8 Education Could Perform Better By 2019

Apr 16 2018 - Australia
9
Growing Opportunity For G8 Education

Mar 14 2018 - Australia
10
Buying Opportunity Presents In G8 Education

Dec 05 2017 - Australia