Generation Development Group Limited (GDG) AI Stock Analysis

• Market Cap: €2.30B
• Dividend Yield: 0.38%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.63
• Revenue Growth: 179.91%
• EPS Growth: 628.61%
• Country: AU
• Employees: 200
• Sector: Real Estate
• Sector Strength: 63
• Industry: Asset Management
• EPS (TTM): 0.27
• Shares Outstanding: 392,804,780
• 10 Day Avg. Volume: 1,216,370
• 30 Day Avg. Volume: 1,897,504
• PEG Ratio: -0.22
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 381.20
• 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: €5.89
• Price Target Upside: 1.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: AU$5.00 ▼(-14.09%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 Business Overview & Revenue Model

Company Description

Generation Development Group Limited (GDG) is an Australia-based company that operates primarily in the financial services sector. It is primarily involved in the provision of development and management of investment bonds and other financial products. The company's core services revolve around providing innovative financial solutions to meet the investment needs of its clients, including retail investors and financial advisors.

How the Company Makes Money

Generation 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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
465.90M	329.32M	58.91M	92.85M	113.03M	57.04M
	Gross Profit
455.81M	329.32M	49.23M	84.18M	106.69M	51.87M
	EBIT
505.26M	287.08M	199.33M	-211.71M	241.67M	-48.29M
	EBITDA
400.59M	282.13M	199.96M	-210.40M	242.50M	-47.48M
	Net Income Common Stockholders
80.34M	5.84M	4.50M	1.90M	2.53M	-1.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
105.32M	259.83M	2.65B	2.09B	1.82B	1.28B
	Total Assets
4.47B	3.65B	2.74B	2.25B	1.91B	1.33B
	Total Debt
16.89M	3.46M	3.81M	4.24M	4.79M	488.00K
	Net Debt
-88.44M	-256.37M	-89.85M	-85.20M	-90.34M	-61.61M
	Total Liabilities
4.12B	3.44B	2.69B	2.19B	1.86B	1.31B
	Stockholders Equity
346.12M	211.38M	59.05M	57.35M	51.45M	17.37M
Cash Flow		Free Cash Flow
4.41M	19.88M	10.79M	3.13M	23.43M	36.84M
	Operating Cash Flow
4.61M	20.03M	11.21M	5.01M	24.42M	37.47M
	Investing Cash Flow
-134.61M	4.38M	-2.75M	-6.85M	-21.57M	3.85M
	Financing Cash Flow
138.69M	145.55M	-4.25M	-3.86M	30.19M	-3.20M

Generation Development Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 5.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	76 Outperform	$22.35B	15.85	9.52%	5.46%	-11.75%	―
MFG	74 Outperform	€1.42B	6.49	23.27%	8.38%	-9.29%	12.94%
GDG	66 Neutral	€2.30B	21.50	40.11%	0.38%	179.91%	628.61%
MYS	66 Neutral	AU$700.03M	13.57	7.25%	5.31%	14.46%	-6.87%
Sector *	61 Neutral	$2.82B	10.84	0.42%	8439.00%	5.74%	-20.95%
IFL	54 Neutral	$2.27B	―	-7.21%	2.37%	-8.26%	-259.91%
AMP	51 Neutral	$3.19B	17.77	4.84%	2.39%	19.36%	1261.54%

Generation Development Group Limited Corporate Events

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.

Generation Development Group Achieves ASX 200 Milestone with Strong Quarterly Performance

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

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

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

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

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

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

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

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

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.