G8 Education Limited (AU:GEM)
ASX:GEM
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G8 Education Limited
(Sydney:GEM)
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Rating:44Neutral
Price Target:
AU$0.16
▼(-38.46% Downside)
Action:Reiterated
Date:04/30/26
The score is held down primarily by weak financial performance (large 2025 net loss and sharply higher leverage) and bearish technicals (price far below key moving averages with very weak momentum). Valuation is somewhat supported by the very high dividend yield, but the negative P/E reflects loss-making conditions and limits the offset.
Positive Factors
Recurring revenue & subsidy-backed model
G8’s core revenues derive from recurring centre-based childcare fees complemented by government subsidy payments. That mix creates structurally recurring cash inflows tied to enrolment and policy frameworks, helping revenue predictability and long-term demand resilience versus one-off sales.
Negative Factors
High leverage and weakened equity buffer
Leverage jumped materially, raising refinancing, interest and covenant risks. With equity compressed, the company has a thinner cushion to absorb future earnings shocks or funding stress. High debt limits strategic flexibility and magnifies downside from enrollment or subsidy shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & subsidy-backed model
G8’s core revenues derive from recurring centre-based childcare fees complemented by government subsidy payments. That mix creates structurally recurring cash inflows tied to enrolment and policy frameworks, helping revenue predictability and long-term demand resilience versus one-off sales.
Read all positive factors
G8 Education Limited (GEM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$123.45M
Dividend Yield7.86%
Average Volume (3M)4.74M
Price to Earnings (P/E)―
Beta (1Y)0.84
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$0.25Price Target Upside-4.62% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.04
Revenue Forecast (FY)AU$848.73M
G8 Education Limited Business Overview & Revenue Model
Company Description
G8 Education Limited provides early childhood education and care services in Australia. It offers its services under the Buggles, Community Kids, Casa Bambini, Creative Garden, First Grammar, Great Beginnings, Green Wood, Head Start, Kool Kids, Ki...
How the Company Makes Money
GEM primarily makes money by operating childcare and early learning centres and charging families fees for child enrolments and attendance. A significant portion of its revenue is also supported by Australian Government childcare funding mechanism...
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 | 1.41B | 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
Negative
0.26
Price Trends
0.22
Negative
0.40
Negative
0.60
Negative
Market Momentum
-0.02
Negative
38.58
Neutral
45.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GEM, the sentiment is Negative. The current price of 0.26 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.22, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 45.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | AU$87.57M | 4.86 | 17.97% | 9.92% | 26.36% | 11.51% | |
56 Neutral | AU$76.02M | 8.52 | 5.78% | 12.92% | 3.81% | -55.52% | |
48 Neutral | AU$58.67M | 119.49 | 0.87% | ― | -0.72% | ― | |
48 Neutral | AU$29.79M | 4.70 | -22.15% | 1.67% | -3.90% | -307.37% | |
44 Neutral | AU$123.45M | -0.40 | -43.21% | 7.86% | -6.74% | -579.00% | |
38 Underperform | AU$4.11M | -2.37 | -111.42% | ― | -3.52% | 55.08% |
* Consumer Defensive Sector Average
AU:GEM
G8 Education Limited
0.17
-1.07
-86.31%
AU:EVO
Evolve Education Group Ltd
0.43
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-35.24%
AU:CLU
Cluey Ltd
0.01
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-86.84%
AU:3PL
3P Learning Ltd.
0.21
-0.45
-68.18%
AU:KME
Kip McGrath Education Centres Limited
0.55
0.14
33.25%
AU:NDO
Nido Education Limited
0.34
-0.41
-54.91%
G8 Education Limited Corporate Events
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...
G8 Education Sets Hybrid Format for 2026 Annual General Meeting
Mar 26, 2026
G8 Education has announced arrangements for its 2026 Annual General Meeting, which will be held as a hybrid event on 29 April 2026 at 12.00pm AEST. Shareholders can attend virtually via the MUFG Corporate Markets online platform or in person at Al...
Dimensional Entities Exit Substantial Holder Position in G8 Education
Mar 3, 2026
Dimensional entities have lodged a notice stating they have ceased to be a substantial holder in G8 Education Limited as of 27 February 2026, ending a prior disclosed substantial shareholding position. The filing, made under Australian Corporation...
Host-Plus Ceases to Be a Substantial Shareholder in G8 Education
Mar 3, 2026
G8 Education has disclosed that Host-Plus Pty Limited, a superannuation fund manager, has ceased to be a substantial shareholder in the company as of 26 February 2026. The change, lodged under Australia’s substantial holding rules, signals a...
G8 Education Director Julie Cogin Increases On-Market Shareholding
Feb 26, 2026
G8 Education Limited has disclosed a change in the shareholding of non-executive director Julie Ann Cogin, who increased her directly held stake in the company through an on-market purchase. Cogin acquired 25,000 fully paid ordinary shares for $9,...
G8 Education Swings to Loss as Occupancy and Impairment Hit 2025 Results
Feb 22, 2026
G8 Education reported a challenging 2025 financial year, with group revenue falling 7.2% to $948.2 million and operating EBIT down 18.9% to $93.3 million as lower occupancy weighed on earnings. The group posted a statutory net loss after tax of $3...
G8 Education Releases 2025 Full-Year Results Presentation
Feb 22, 2026
G8 Education has released its investor presentation detailing the full year results for the 12 months ended 31 December 2025. The materials, authorised by the board and lodged with the ASX, mark the formal communication of the company’s 2025...
G8 Education Flags $350m Goodwill Impairment, Halts Dividend and Buyback
Feb 9, 2026
G8 Education expects to recognise a non-cash goodwill impairment of about $350 million in its full-year results, driven by lower projected occupancy, cost of living pressures, rising wages and operating costs, and anticipated regulatory and compli...
G8 Education Sets Date for 2025 Full-Year Results and Investor Briefing
Feb 9, 2026
G8 Education has announced that it will release its 2025 full-year financial results and Annual Report on Monday, 23 February 2026, providing investors and stakeholders with an updated view of the company’s performance. The company will host...
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.