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Generation Development Group Limited (AU:GDG)
ASX:GDG
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Generation Development Group Limited (GDG) AI Stock Analysis

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AU:GDG

Generation Development Group Limited

(Sydney:GDG)

Rating:70Outperform
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 (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 MoneyGDG 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
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue329.32M58.91M92.85M113.03M57.04M
Gross Profit329.32M49.23M84.18M106.69M51.87M
EBITDA282.13M199.96M-210.40M242.50M-47.48M
Net Income5.84M4.50M1.90M2.53M-1.64M
Balance Sheet
Total Assets3.65B2.74B2.25B1.91B1.33B
Cash, Cash Equivalents and Short-Term Investments259.83M2.65B2.09B1.82B1.28B
Total Debt3.46M3.81M4.24M4.79M488.00K
Total Liabilities3.44B2.69B2.19B1.86B1.31B
Stockholders Equity211.38M59.05M57.35M51.45M17.37M
Cash Flow
Free Cash Flow19.88M10.79M3.13M23.43M36.84M
Operating Cash Flow20.03M11.21M5.01M24.42M37.47M
Investing Cash Flow4.38M-2.75M-6.85M-21.57M3.85M
Financing Cash Flow145.55M-4.25M-3.86M30.19M-3.20M

Generation Development Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.60
Price Trends
50DMA
5.37
Positive
100DMA
5.05
Positive
200DMA
4.46
Positive
Market Momentum
MACD
0.05
Negative
RSI
60.92
Neutral
STOCH
76.19
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
€2.16B20.0740.11%0.36%179.91%628.61%
64
Neutral
$6.87B15.19-1.99%6.97%4.50%-23.97%
$1.98B-7.21%2.37%
€999.48M7.4423.27%6.52%
€1.31B-24.47%5.97%
70
Outperform
AU$1.45B19.854.97%7.48%13.48%-8.15%
50
Neutral
AU$1.37B30.2510.26%2.53%31.89%45.79%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:GDG
Generation Development Group Limited
5.60
3.14
127.46%
IOOFF
Insignia Financial Ltd
2.56
0.80
45.45%
DE:NNA
Magellan Financial Group Ltd
5.65
0.22
4.05%
DE:PVQ
Perpetual Limited
11.00
-1.03
-8.56%
AU:MAF
MA Financial Group Limited
7.91
3.52
80.18%
AU:CNI
Centuria Capital Group
1.76
0.18
11.39%

Generation Development Group Limited Corporate Events

Generation Development Group Aligns Director Interests with Shareholder Approval
Jul 25, 2025

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
Jul 25, 2025

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
Jul 1, 2025

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
Jul 1, 2025

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
Jun 30, 2025

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
Jun 18, 2025

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
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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 16, 2025