Generation Development Group Limited (GDG) AI Stock Analysis

• Market Cap: €2.16B
• Dividend Yield: 0.36%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.77
• Revenue Growth: 179.91%
• EPS Growth: 628.61%
• Country: AU
• Employees: 200
• Sector: Real Estate
• Sector Strength: 66
• Industry: Asset Management
• EPS (TTM): 0.27
• Shares Outstanding: 395,379,200
• 10 Day Avg. Volume: 1,425,873
• 30 Day Avg. Volume: 1,352,998
• PEG Ratio: -0.27
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 479.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €6.04
• Price Target Upside: 7.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: AU$6.00 ▲(7.14%Upside)

The overall stock score is primarily driven by strong financial performance highlighted by significant revenue growth and cash generation efficiency. Valuation is also a positive factor due to a high dividend yield. However, the technical analysis indicates mixed signals, with neutral momentum and potential oversold conditions. Limited information on earnings calls and corporate events did not affect the score.

Generation Development Group Limited Business Overview & Revenue Model

Company Description

Generation 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 Money

GDG makes money through a diversified revenue model that includes management fees, performance fees, and advisory fees. The company generates management fees by overseeing assets within their investment funds, charging a percentage of the assets under management (AUM) as a fee. Performance fees are earned based on the investment returns that exceed predetermined benchmarks, providing an incentive-aligned earnings stream. Additionally, GDG offers advisory services to institutional and retail clients, for which they receive advisory fees. Strategic partnerships with financial institutions and other investment firms also contribute to their revenue by expanding market reach and enhancing product offerings.

Generation Development Group Limited Financial Statement Overview

Summary

Generation Development Group Limited demonstrates robust revenue growth and operational efficiency with significant cash reserves. While the net profit margin and equity ratios are relatively low, the company's effective cash generation supports financial health and potential growth.

Income Statement

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

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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	329.32M	58.91M	92.85M	113.03M	57.04M
Gross Profit	329.32M	49.23M	84.18M	106.69M	51.87M
EBITDA	282.13M	199.96M	-210.40M	242.50M	-47.48M
Net Income	5.84M	4.50M	1.90M	2.53M	-1.64M
Balance Sheet
Total Assets	3.65B	2.74B	2.25B	1.91B	1.33B
Cash, Cash Equivalents and Short-Term Investments	259.83M	2.65B	2.09B	1.82B	1.28B
Total Debt	3.46M	3.81M	4.24M	4.79M	488.00K
Total Liabilities	3.44B	2.69B	2.19B	1.86B	1.31B
Stockholders Equity	211.38M	59.05M	57.35M	51.45M	17.37M
Cash Flow
Free Cash Flow	19.88M	10.79M	3.13M	23.43M	36.84M
Operating Cash Flow	20.03M	11.21M	5.01M	24.42M	37.47M
Investing Cash Flow	4.38M	-2.75M	-6.85M	-21.57M	3.85M
Financing Cash Flow	145.55M	-4.25M	-3.86M	30.19M	-3.20M

Generation Development Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.6 is above the 20-day moving average (MA) of 5.29, above the 50-day MA of 5.37, and above the 200-day MA of 4.46, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDG	70 Outperform	€2.16B	20.07	40.11%	0.36%	179.91%	628.61%
Sector *	64 Neutral	$6.87B	15.19	-1.99%	6.97%	4.50%	-23.97%
IOOFF	―	$1.98B	―	-7.21%	2.37%	―	―
NNA	―	€999.48M	7.44	23.27%	6.52%	―	―
PVQ	―	€1.31B	―	-24.47%	5.97%	―	―
CNI	70 Outperform	AU$1.45B	19.85	4.97%	7.48%	13.48%	-8.15%
MAF	50 Neutral	AU$1.37B	30.25	10.26%	2.53%	31.89%	45.79%

Generation Development Group Limited Corporate Events

Generation Development Group Aligns Director Interests with Shareholder Approval

Generation Development Group Limited has announced a change in the director’s interest, specifically granting 2 million indeterminate performance rights to Director Robert Neil Coombe, subject to shareholder approval at the 2025 AGM. This move indicates a strategic alignment of interests between the company’s leadership and its shareholders, potentially impacting the company’s governance and performance metrics positively.

The most recent analyst rating on (AU:GDG) stock is a Buy with a A$3.29 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 Revises Executive Remuneration

Generation Development Group Limited has announced changes to the remuneration and employment terms for its Executive Chairman, Rob Coombe, and CEO, Grant Hackett. The revisions include increased fixed remuneration and adjustments to short-term and long-term incentive structures, reflecting the company’s efforts to align executive compensation with performance goals and long-term strategic objectives. These changes are expected to impact the company’s operational focus and stakeholder interests positively.

The most recent analyst rating on (AU:GDG) stock is a Buy with a A$3.29 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 Issues New Securities Under Employee Incentive Scheme

Generation Development Group Limited announced the issuance of 2,574,432 ordinary fully paid securities, which will be quoted on the ASX. This move is part of an employee incentive scheme, reflecting the company’s strategy to motivate and retain talent, potentially strengthening its market position and enhancing stakeholder value.

The most recent analyst rating on (AU:GDG) stock is a Buy with a A$3.29 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 Launches Employee Loan Share Plan

Generation Development Group Limited has issued 2,574,432 fully paid ordinary shares to 14 eligible employees under its Loan Share Plan. This initiative is designed to incentivize employees by linking rewards to the company’s share price growth and relative total shareholder return over a five-year performance period. The plan includes a limited recourse, interest-free loan to fund the share purchase, with dividends applied to reduce the loan balance. The vesting of shares is contingent upon meeting specific performance conditions, including share price growth and total shareholder return compared to a peer group, ensuring alignment with shareholder interests.

The most recent analyst rating on (AU:GDG) stock is a Buy with a A$3.29 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 Grants Performance Rights to Boost Employee Engagement

Generation Development Group Limited has announced the grant of 426,401 rights under its GDG Rights Plan, aimed at aligning employee remuneration with company performance and enhancing employee retention. The rights, which are not quoted securities, are subject to specific vesting conditions tied to performance targets such as indexed total shareholder return, earnings per share growth, and annuities business funds under management over a three-year period. This initiative is designed to motivate key employees and strengthen the company’s market position by linking compensation to strategic financial goals.

The most recent analyst rating on (AU:GDG) stock is a Buy with a A$4.85 price target. To see the full list of analyst forecasts on Generation Development Group Limited stock, see the AU:GDG Stock Forecast page.

Director’s Interest Change at Generation Development Group

Generation Development Group Limited has announced a change in the director’s interest notice, specifically regarding William Eric Bessemer. Mr. Bessemer, who holds an indirect interest through Onever Pty Ltd, has disposed of 192,000 fully paid ordinary shares valued at $1,098,777.07 through on-market trades. This change reduces his total holdings to 11,477,699 shares, impacting his overall stake in the company.

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 Issues New Shares in Compliance with Regulatory Standards

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

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

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

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.