G8 Education Limited (GEM)

Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today » it's FREE! Already a member? Login now!

General Information
Company Name: G8 Education Limited
Stock Code: GEM
Website: www.g8education.com.au
GICS Sub-Industry: Education Services
Market Cap ($M): 1,595
Equiv. Shares (M): 354

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 4.510 $ 4.510 $ 4.570 $ 4.480 $ 4.480 714,712 $ 0.030  0.670 %

Current Broker Consensus Recommendation more
Recommendation: Buy (2)
Recommendation Date: 12th Nov 2014
Brokers Surveyed: 1

Company Overview

Business Description:
G8 Education Limited (GEM) is a childcare center operator providing developmental and educational child care services mainly in Australia. GEM conducts a range of child care service activities, including: the acquisition of child care centres, the management of child care centres, industry-related project management, services and consultancy. GEM also operates child care centres, both owned and franchised, in Singapore.

Strategy Analysis:
G8 currently holds a portfolio of premier childcare brands and chooses to navigate this quality tilt through its corporate architecture as the company continues to stress the tremendous importance of outstanding childcare. This strategic positioning of its product, disseminating quality and safety allows the G8 to command relatively high margins. In addition to this, a wide distribution spanning Australia and Singapore gives the company leverage to capitalise on demographical changes. Growth will stem from both potential acquisition opportunities and through more organic means. G8 Education reported NPAT up 11% to $19.21m for the year ended 31 December 2012. Revenues from ordinary activities were $179.99m, up 26% from last year. Diluted EPS was 8.94 cents compared to 9.27 cents last year. Net operating cash flow was $19.95m compared to $11.76m last year. The final dividend declared was 2 cents, taking the full year dividend to 6 cents compared with 4 cents last year.

Financial Summary
Year to Dec NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2015  F 120.0 33.7 49.1 13.4 30.7 6.8 100.0
2014  F 73.2 22.6 81.8 20.0 18.7 4.1 100.0
2013  A 32.3 12.4 35.3 20.3 12.0 4.8 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
G8 Education (GEM) $1,585 M 0.2766 0.9258 0.4914 38.2253 19.8494 13.3096 2.68 4.17 6.85
Navitas (NVT) $2,001 M 0.0996 0.1922 0.1313 24.3478 20.4223 18.0523 3.67 4.94 5.55
Vocation (VET) $145 M -- 1.7858 0.2085 11.4338 4.1042 3.3962 5.08 19.84 23.02

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
GEM 0.56 20.9 4.44 0.30 4.56
Market 0.92 15.3 1.20 1.77 1.54
Sector 1.43 18.3 2.65 1.44 2.60

Name Position Start Date
Mr Chirstopher John Scott Managing Director 25 March 2010
Ms Jennifer Joan Hutson Non-Executive Chairman 25 March 2010
Mr Andrew Peter Somervill Kemp Non-Executive Director 18 March 2011
Mr Brian Hilton Bailison Non-Executive Director 25 March 2010
Ms Susan Margaret Forrester Non-Executive Director 01 November 2011

Name Position
Christopher Sacre Chief Financial Officer,Company Secretary,Chief Operating Officer

Substantial Shareholders
Holding Name
15,142,720 (5.02%) National Australia Bank Limited and associated companies
17,361,853 (5.75%) Perpetual Limited

Calendar of Events
Date Event
10 August 2015 Report (Interim)
16 February 2015 Report (Prelim)
16 February 2015 Report (Annual)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.


Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Investing in Art

An educational booklet with useful, practical tips to help you make better-informed decisions about investing in art.

More details...


Australian Share Market - Close Up

CMC Markets 11/11/2014 | The Australian share market is in a decision zone - and trading from here may set the direction for the rest of the year.

Prices slashed - everything must go!

Nick Swales, Regional Director, Newcastle Office, Rathbones 27/10/2014 | “If you want to have a better performance than the crowd, you must do things differently from the crowd.” Sir John Templeton.

Aussie share market bulls now have company

Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 | Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.

The Importance of Ignoring the Noise of the Market

Carl Richards, director of investor education at the BAM Alliance 17/10/2014 | “As odd as it may sound, the sooner you start treating your investments like you treat life, the happier you’ll be with the outcome.”

You only dance twice

William H. Gross, Janus Capital Group 16/10/2014 | “Financial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding “minus” 10 basis points.”

The Big Picture - Australia 200 Index

CMC Markets 8/10/2014 | Share market indices around the globe are breaking down. While analysts cast around for reasons, it’s clear that a time factor is in play. Simply put, many investors “feel” a correction is overdue. How low could it go?


Sponsored Links