Generation Development Group Limited (GDG) AI Stock Analysis

• Market Cap: €2.45B
• Dividend Yield: 0.32%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 53.1
• Beta (1Y): 0.84
• Revenue Growth: 101.09%
• EPS Growth: 457.04%
• Country: AU
• Employees: 200
• Sector: Real Estate
• Sector Strength: 50
• Industry: Asset Management
• EPS (TTM): -0.10
• Shares Outstanding: 396,762,660
• 10 Day Avg. Volume: 2,671,087
• 30 Day Avg. Volume: 1,840,022
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €7.35
• Price Target Upside: 20.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: AU$6.00 ▼(-1.64% Downside)

The overall stock score of 54 reflects the company's strong operational efficiency and financial stability, offset by significant revenue decline and high valuation. The technical indicators suggest potential oversold conditions, but the high P/E ratio and low dividend yield are concerns for valuation.

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

Generation Development Group Limited makes money through a combination of investment management fees, insurance premiums, and related financial services. The company earns revenue by managing investment portfolios on behalf of clients, collecting fees based on the assets under management. Additionally, GDG generates income through life insurance products, where premiums collected from policyholders contribute to its revenue streams. The company may also engage in strategic partnerships and collaborations within the financial services industry that enhance its product offerings and expand its market reach.

Generation Development Group Limited Financial Statement Overview

Summary

Generation Development Group Limited shows strong operational efficiency with high EBIT and EBITDA margins, and a robust balance sheet with low leverage. However, the company faces significant revenue decline and low net profit margins, which are key concerns. Cash flow generation is improving, but the alignment of operating cash flow with net income needs attention.

Income Statement

The income statement shows a significant decline in revenue for the most recent year, with a revenue growth rate of -97.87%. Despite this, the company maintains strong EBIT and EBITDA margins at 44.56% and 46.16%, respectively, indicating efficient operations. However, the net profit margin is relatively low at 3.86%, suggesting challenges in converting revenue into net income.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity is modest at 5.46%, reflecting moderate profitability. The equity ratio is not provided, but the overall financial stability appears solid given the low debt levels.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 81.69%, indicating improved cash generation. The operating cash flow to net income ratio is 0.32, suggesting that operating cash flow is lower relative to net income, which could be a concern. However, the free cash flow to net income ratio is healthy at 0.66, showing good cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	512.72M	9.90M	329.32M	58.91M	92.85M	113.03M
Gross Profit	8.00M	8.00M	329.32M	49.23M	84.18M	106.69M
EBITDA	380.23M	457.18M	282.13M	199.96M	-210.40M	242.50M
Net Income	38.25M	38.25M	5.84M	4.50M	1.90M	2.53M
Balance Sheet
Total Assets	5.51B	5.51B	3.65B	2.74B	2.25B	1.91B
Cash, Cash Equivalents and Short-Term Investments	4.66B	180.21M	259.83M	2.65B	2.09B	1.82B
Total Debt	7.03M	7.03M	3.46M	3.81M	4.24M	4.79M
Total Liabilities	4.81B	4.81B	3.44B	2.69B	2.19B	1.86B
Stockholders Equity	700.35M	700.35M	211.38M	59.05M	57.35M	51.45M
Cash Flow
Free Cash Flow	19.95M	8.01M	19.88M	10.79M	3.13M	23.43M
Operating Cash Flow	20.24M	12.15M	20.03M	11.21M	5.01M	24.42M
Investing Cash Flow	-374.97M	-365.26M	4.38M	-2.75M	-6.85M	-21.57M
Financing Cash Flow	273.49M	273.49M	145.55M	-4.25M	-3.86M	30.19M

Generation Development Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GDG, the sentiment is Neutral. The current price of 6.1 is below the 20-day moving average (MA) of 6.31, above the 50-day MA of 5.86, and above the 200-day MA of 4.90, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 7.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	63 Neutral	$7.09B	13.58	-0.36%	6.86%	4.08%	-25.24%
GDG	54 Neutral	€2.45B	53.14	9.40%	0.32%	101.09%	457.04%
IOOFF	―	$2.00B	174.49	0.72%	2.37%	―	―
NNA	―	€989.08M	10.14	16.50%	―	―	―
PVQ	―	€1.27B	―	-3.34%	―	―	―
CNI	65 Neutral	AU$1.96B	23.67	5.59%	5.62%	38.64%	-21.14%
MAF	50 Neutral	AU$1.70B	41.09	8.97%	2.19%	35.30%	44.24%

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.