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Generation Development Group Limited (AU:GDG)
ASX:GDG

Generation Development Group Limited (GDG) AI Stock Analysis

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AU

Generation Development Group Limited

(Sydney:GDG)

Rating:66Neutral
Price Target:
AU$5.00
▼(-13.64%Downside)
Generation Development Group Limited demonstrates strong financial performance with notable revenue growth and efficient cash generation. Technical analysis presents mixed signals, with potential downward price momentum. The company's valuation appears reasonable. Overall, the stock shows promise, but investors should be mindful of the low net profit margins and slightly negative market momentum.

Generation Development Group Limited (GDG) vs. iShares MSCI Australia ETF (EWA)

Generation Development Group Limited Business Overview & Revenue Model

Company DescriptionGeneration Development Group Limited manages and markets life insurance and life investment products and services to the retail sector in Australia. The company operates in two segments, Benefit Funds Management & Funds Administration, and Other Business. It offers investment bond product solutions and administration and management services. The company was formerly known as Austock Group Limited and changed its name to Generation Development Group Limited in March 2018. Generation Development Group Limited was founded in 1991 and is based in Melbourne, Australia.
How the Company Makes MoneyGeneration Development Group Limited makes money through the management and administration of investment bonds and other financial products. Its revenue model is based on earning fees from managing these financial products, which include administration fees, management fees, and performance fees. These fees are typically calculated based on the value of assets under management (AUM). The company may also engage in partnerships with financial advisors and institutions to expand its distribution network and access a broader client base, thereby increasing its AUM and associated fee income. Additionally, GDG benefits from the growth of its investment products, as higher returns can lead to increased AUM and subsequently more fee income.

Generation Development Group Limited Financial Statement Overview

Summary
Overall, Generation Development Group Limited exhibits strong revenue growth and operational efficiency, complemented by substantial cash reserves. However, relatively low net profit margins and equity ratios suggest areas for improvement in cost management and capital structure reinforcement. The company's ability to generate cash is a significant strength, supporting its financial health and growth potential.
Income Statement
75
Positive
The company displays strong profitability with a high gross profit margin of 94.4% and a net profit margin of 1.8%. Revenue growth is impressive at 459% year-over-year, indicating robust business expansion. However, the EBIT margin of 84.3% and EBITDA margin of 85.7% highlight operational efficiency. Despite these strengths, the net profit margin is relatively low, which could suggest potential cost management or pricing challenges.
Balance Sheet
68
Positive
The balance sheet shows a strong equity position with an equity ratio of 5.8% and a low debt-to-equity ratio of 0.016. With a return on equity of 2.8%, the company shows modest profitability relative to shareholder equity. The substantial cash reserves bolster financial stability, yet low equity compared to assets may indicate a need for strengthening the capital structure.
Cash Flow
72
Positive
The cash flow statement reflects strong cash generation with consistent free cash flow, which grew by 84.4% year-over-year. The operating cash flow to net income ratio of 3.43 indicates efficient cash conversion from income. The free cash flow to net income ratio of 3.40 further underscores cash generation efficiency. While cash flow generation is robust, maintaining this growth trajectory may be challenging.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
465.90M329.32M58.91M92.85M113.03M57.04M
Gross Profit
455.81M329.32M49.23M84.18M106.69M51.87M
EBIT
505.26M287.08M199.33M-211.71M241.67M-48.29M
EBITDA
400.59M282.13M199.96M-210.40M242.50M-47.48M
Net Income Common Stockholders
80.34M5.84M4.50M1.90M2.53M-1.64M
Balance SheetCash, Cash Equivalents and Short-Term Investments
105.32M259.83M2.65B2.09B1.82B1.28B
Total Assets
4.47B3.65B2.74B2.25B1.91B1.33B
Total Debt
16.89M3.46M3.81M4.24M4.79M488.00K
Net Debt
-88.44M-256.37M-89.85M-85.20M-90.34M-61.61M
Total Liabilities
4.12B3.44B2.69B2.19B1.86B1.31B
Stockholders Equity
346.12M211.38M59.05M57.35M51.45M17.37M
Cash FlowFree Cash Flow
4.41M19.88M10.79M3.13M23.43M36.84M
Operating Cash Flow
4.61M20.03M11.21M5.01M24.42M37.47M
Investing Cash Flow
-134.61M4.38M-2.75M-6.85M-21.57M3.85M
Financing Cash Flow
138.69M145.55M-4.25M-3.86M30.19M-3.20M

Generation Development Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.79
Price Trends
50DMA
4.79
Positive
100DMA
4.68
Positive
200DMA
3.95
Positive
Market Momentum
MACD
0.24
Negative
RSI
76.13
Negative
STOCH
84.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GDG, the sentiment is Positive. The current price of 5.79 is above the 20-day moving average (MA) of 4.99, above the 50-day MA of 4.79, and above the 200-day MA of 3.95, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 76.13 is Negative, neither overbought nor oversold. The STOCH value of 84.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GDG.

Generation Development Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUGDG
66
Neutral
€2.18B20.3340.11%0.38%179.91%628.61%
61
Neutral
$2.82B10.770.50%8439.01%5.72%-20.80%
$2.07B17.344.84%2.45%
$1.47B-7.21%2.37%
DENNA
€803.34M5.8523.27%8.19%
$14.49B14.039.52%5.46%
AUMYS
66
Neutral
AU$700.03M13.577.25%5.37%14.46%-6.87%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:GDG
Generation Development Group Limited
5.79
3.64
169.55%
AMLTF
AMP
0.81
0.10
14.08%
IOOFF
Insignia Financial Ltd
2.56
1.04
68.42%
DE:NNA
Magellan Financial Group Ltd
4.52
-0.21
-4.44%
SNMYF
Suncorp Group
12.06
2.35
24.20%
AU:MYS
Mystate Limited
4.14
0.68
19.65%

Generation Development Group Limited Corporate Events

Generation Development Group Issues New Shares in Compliance with Regulatory Standards
May 14, 2025

Generation Development Group Limited has issued 6,024,096 fully paid ordinary shares, as previously announced on 8 May 2025. This issuance was conducted without the need for disclosure under Part 6D.2 of the Corporations Act, and the company confirms compliance with relevant legal provisions, ensuring transparency and adherence to regulatory standards.

The most recent analyst rating on (AU:GDG) stock is a Buy with a A$2.90 price target. To see the full list of analyst forecasts on Generation Development Group Limited stock, see the AU:GDG Stock Forecast page.

Generation Development Group Expands Market Presence with New Securities Quotation
May 14, 2025

Generation Development Group Limited has announced the quotation of 6,024,096 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of May 14, 2025. This move is part of a previously announced transaction, potentially enhancing the company’s market presence and providing stakeholders with increased investment opportunities.

The most recent analyst rating on (AU:GDG) stock is a Buy with a A$2.90 price target. To see the full list of analyst forecasts on Generation Development Group Limited stock, see the AU:GDG Stock Forecast page.

Generation Development Group and BlackRock Forge Alliance for Retirement Solutions
May 8, 2025

Generation Development Group Limited’s subsidiary, Generation Life, has formed a strategic alliance with BlackRock to create and distribute Holistic Retirement Solutions for Australian retirees. This collaboration aims to provide sustainable income streams with longevity protection, enhancing GDG’s market leadership in retirement solutions. BlackRock will acquire a $25 million minority stake in GDG to support the development of these new solutions, marking a significant milestone in GDG’s growth strategy.

Generation Development Group Announces Proposed Securities Issue
May 8, 2025

Generation Development Group Limited has announced a proposed issue of 6,024,096 ordinary fully paid securities, scheduled for May 14, 2025. This strategic move is expected to enhance the company’s capital base, potentially strengthening its market position and providing additional resources for future growth initiatives.

Generation Development Group Achieves ASX 200 Milestone with Strong Quarterly Performance
Apr 23, 2025

Generation Development Group reported strong performance in the March quarter, driven by strategic acquisitions and robust financial growth across its business segments. The acquisition of Evidentia Group has positioned GDG as a market leader in managed accounts, with significant increases in funds under management and net inflows. Generation Life achieved record inflows in the investment bonds market, while Lonsec Research and Ratings saw substantial revenue growth. The company has been recognized as a fast-growing brand, recently joining the ASX 200, reflecting its sustained growth and strategic execution.

Generation Development Group Ratifies Key Share Issuances at Extraordinary Meeting
Apr 23, 2025

Generation Development Group Limited announced the successful ratification of two resolutions during its Extraordinary General Meeting. The resolutions involved the prior issuance of Placement Shares and Consideration Shares, both of which were carried with overwhelming support. This outcome reflects strong shareholder backing and may positively impact the company’s strategic initiatives and market positioning.

Generation Development Group’s Extraordinary General Meeting Enhances Stakeholder Engagement
Apr 23, 2025

Generation Development Group held an Extraordinary General Meeting chaired by Christine Christian AO, an Independent Non-Executive Director. The meeting included an online question submission process, allowing attendees to engage directly with the company, potentially enhancing stakeholder communication and involvement.

Generation Development Group Expands with Evidentia Acquisition
Apr 23, 2025

Generation Development Group Limited announced its acquisition of Evidentia Group Holdings Pty Ltd, a strategic move to enhance its position in the managed accounts market. This acquisition is expected to create a more robust and scalable offering by combining Evidentia’s tailored solutions and expertise with Lonsec’s comprehensive investment services, ultimately benefiting financial advisers and their clients with improved insights and integrated service experiences.

Generation Development Group Updates on Substantial Holder Interests
Mar 26, 2025

Generation Development Group Limited has announced changes regarding substantial holders and their relevant interests, as per the Corporations Act 2001. This announcement may impact the company’s operations by clarifying the structure and control of voting powers and securities, potentially affecting stakeholders’ interests and the company’s market positioning.

Generation Development Group Sets DRP Share Price for FY25
Mar 20, 2025

Generation Development Group Limited has announced the allocation price for its Dividend Reinvestment Plan (DRP) shares at $4.84 for the FY25 interim dividend. The price is determined based on the average market price of GDG shares over five trading days in March 2025. This announcement indicates a stable approach to shareholder returns, with 31,306 shares set to be allotted to participating shareholders, potentially impacting the company’s market positioning and shareholder engagement.

Generation Development Group Announces Extraordinary General Meeting
Mar 17, 2025

Generation Development Group Limited has announced an Extraordinary General Meeting (EGM) to be held on April 23, 2025, in Melbourne and online. The meeting will address the ratification of previously issued shares, including 27,566,606 Placement Shares and 18,004,826 Consideration Shares, as part of the company’s strategic financial maneuvers. This meeting is significant for stakeholders as it could influence the company’s capital structure and market positioning.

Generation Development Group Announces Director’s Share Acquisition
Mar 6, 2025

Generation Development Group Limited announced a change in the director’s interest, specifically regarding Robert Neil Coombe, who has acquired additional shares through the company’s pro rata accelerated non-renounceable entitlement offer. This acquisition reflects the company’s ongoing efforts to strengthen its financial position and may impact its market standing by potentially increasing investor confidence.

Generation Development Group Expands Market Presence with New Securities Quotation
Mar 6, 2025

Generation Development Group Limited has announced the quotation of 13,199,457 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of March 6, 2025. This move is part of previously announced transactions and is expected to enhance the company’s market presence and liquidity, potentially impacting its operational dynamics and offering new opportunities for stakeholders.

Generation Development Group Completes $54.8 Million Retail Entitlement Offer
Mar 3, 2025

Generation Development Group Limited has successfully completed the retail component of its equity raising, generating approximately $54.8 million. The funds will support the acquisition of Evidentia Group Holdings Pty Ltd and other growth initiatives. The retail offer was oversubscribed, with a participation rate of 120.1%, leading to a scale-back of applications under the Top-Up Facility. The new shares will be issued and commence trading in early March 2025.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.