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G8 Education Limited
(Sydney:GEM)
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Rating:50Neutral
Price Target:
AU$0.15
▼(-44.23% Downside)
Action:Reiterated
Date:06/30/26
The score is primarily held back by deteriorating financial performance—especially the sharp swing to a large net loss and a material increase in leverage with a reduced equity cushion. Stable operating cash flow and still-positive free cash flow provide some support, while valuation is mixed due to a negative P/E (loss-making) alongside a very high dividend yield. Technical analysis is neutral because no indicators were provided.
Positive Factors
Stable operating & positive free cash flow
Consistent operating cash flow and positive free cash flow provide a reliable internal funding source. Over months, this supports working capital, routine capex and service of obligations, giving the business flexibility to stabilize operations and pursue gradual deleveraging or reinvestment.
Negative Factors
Large net loss and recent profit swing
A sharp swing to a substantial net loss impairs retained earnings and investor confidence. Persisting below-the-line losses can erode equity, limit capacity to reinvest in centres or staffing, and force strategic trade-offs (cost cuts, disposals) that hinder medium-term growth recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable operating & positive free cash flow
Consistent operating cash flow and positive free cash flow provide a reliable internal funding source. Over months, this supports working capital, routine capex and service of obligations, giving the business flexibility to stabilize operations and pursue gradual deleveraging or reinvestment.
Read all positive factors
G8 Education Limited (GEM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$108.02M
Dividend Yield7.86%
Average Volume (3M)4.74M
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-6.74%
EPS Growth-579.00%
CountryAU
Employees7,099
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.40
Shares Outstanding771,558,800
10 Day Avg. Volume5,684,217
30 Day Avg. Volume4,736,042
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.01
Price to Sales (P/S)0.56
P/FCF Ratio4.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.21Price Target Upside-19.23% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.04
Revenue Forecast (FY)AU$848.73M
G8 Education Limited Business Overview & Revenue Model
Company Description
Headquartered in Varsity Lakes, Australia, G8 Education Limited is an Australian firm specializing in early childhood education and care provisions. The company operates a wide array of services catering to young learners, encompassing numerous we...
How the Company Makes Money
G8 Education makes money primarily by charging fees for childcare and early learning services delivered through its network of centres. Revenue is generated from parents/guardians paying out-of-pocket fees (often after the application of Australia...
G8 Education Limited Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
35
Negative
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 946.84M | 1.02B | 983.44M | 901.29M | 845.07M |
| Gross Profit | 231.96M | 929.21M | 891.85M | 209.39M | 185.08M |
| EBITDA | 235.86M | 184.54M | 237.81M | 201.33M | 207.48M |
| Net Income | -303.31M | 67.69M | 56.06M | 36.61M | 45.68M |
Balance Sheet | |||||
| Total Assets | 1.70B | 1.91B | 1.90B | 1.91B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 38.09M | 47.68M | 40.25M | 37.83M | 74.13M |
| Total Debt | 819.08M | 783.99M | 778.13M | 713.55M | 728.91M |
| Total Liabilities | 1.17B | 991.07M | 997.29M | 1.02B | 1.07B |
| Stockholders Equity | 525.68M | 916.31M | 905.50M | 883.36M | 914.71M |
Cash Flow | |||||
| Free Cash Flow | 117.08M | 134.54M | 156.99M | 77.16M | 41.59M |
| Operating Cash Flow | 168.04M | 167.06M | 201.51M | 136.76M | 84.27M |
| Investing Cash Flow | -64.35M | -44.34M | -56.75M | -59.30M | -53.28M |
| Financing Cash Flow | -113.28M | -115.28M | -142.34M | -113.77M | -273.84M |
G8 Education Limited Technical Analysis
Neutral
0.26
Price Trends
0.16
Negative
0.23
Negative
0.49
Negative
Market Momentum
>-0.01
Negative
47.52
Neutral
73.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GEM, the sentiment is Neutral. The current price of 0.26 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.16, and below the 200-day MA of 0.49, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 73.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:GEM.
G8 Education Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$138.18M | 11.06 | 71.63% | 1.17% | 95.33% | 525.79% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | AU$89.61M | 8.72 | 17.97% | 9.92% | 26.36% | 11.51% | |
56 Neutral | AU$79.43M | 12.06 | 5.78% | 12.92% | 3.81% | -55.52% | |
50 Neutral | AU$108.02M | -0.35 | -43.21% | 7.86% | -6.74% | -579.00% | |
48 Neutral | AU$26.25M | -7.26 | -22.15% | 1.67% | -3.90% | -307.37% | |
43 Neutral | AU$9.28M | -8.64 | -6.74% | ― | -2.94% | 66.11% |
* Consumer Defensive Sector Average
AU:GEM
G8 Education Limited
0.14
-0.80
-85.03%
AU:EVO
Evolve Education Group Ltd
0.43
-0.21
-33.02%
AU:EDU
EDU Holdings Limited
1.06
0.73
222.19%
AU:AKG
Academies Australasia Group Limited
0.07
-0.03
-30.00%
AU:KME
Kip McGrath Education Centres Limited
0.48
-0.08
-13.51%
AU:NDO
Nido Education Limited
0.35
-0.28
-44.53%
G8 Education Limited Corporate Events
Australian Retirement Trust Ceases to Be Substantial Holder in G8 Education
May 27, 2026
Australian Retirement Trust Pty Ltd has notified G8 Education that it has ceased to be a substantial holder in the company as of 25 May 2026, following changes in its relevant interests in G8’s voting securities. The move signals a reduction...
G8 Education Director Julie Cogin Increases Personal Shareholding
May 6, 2026
G8 Education has disclosed a change in the shareholding of director Julie Ann Cogin, who increased her direct holding in the company through an on‑market trade. She purchased 50,000 fully paid ordinary shares for $8,500 on 6 May 2026, liftin...
Macquarie Group Exits Substantial Holder Position in G8 Education
May 4, 2026
Macquarie Group Limited and its controlled entities have lodged a notice stating they have ceased to be substantial holders in G8 Education Limited. The filing, signed by an assistant company secretary on 4 May 2026, formalises changes in Macquari...
Vinva Investment Management Ceases to Be Substantial Holder in G8 Education
May 1, 2026
Vinva Investment Management Limited has lodged a notice stating it has ceased to be a substantial shareholder in G8 Education, following a series of transactions in the company’s shares. The fund manager acquired 14,938,649 G8 Education shar...
G8 Education Wins Strong Shareholder Backing at 2026 AGM
Apr 29, 2026
G8 Education has reported the outcomes of its 2026 annual general meeting, confirming that all resolutions put to shareholders were passed with strong majorities. Investors supported the remuneration report, re-elected directors Professor Julie Co...
G8 Education Puts Safety and Governance at Forefront After Turbulent Year
Apr 29, 2026
G8 Education’s 2026 AGM materials, including the chair and CEO addresses, proxy results and presentation, were tabled as the company reflected on what it described as one of the most challenging years in its history. The group highlighted se...
G8 Education to Suspend 40 Centres as Occupancy Falls and Cost Pressures Mount
Apr 28, 2026
G8 Education has outlined a series of cost and network measures in response to a sharp fall in occupancy and mounting cost pressures across the early childhood education and care sector. With spot and year-to-date occupancy down around eight perce...
Macquarie Group Ceases to Be Substantial Holder in G8 Education
Apr 24, 2026
Macquarie Group Limited and its controlled entities have lodged a notice that they have ceased to be substantial shareholders in G8 Education Limited. The change in substantial holding alters G8 Education’s institutional investor base, poten...
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.