G8 Education Limited (GEM)
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Essentials
Recent News Highlights
As at 31/12/2012 : see details at www.g8education.com.au
| 21/06/2013 Joins the S&P/ASX 200 Index |
Half-year Performance & Estimates - GEM
| Year-end December | 1H10A | 1H11A | 1H12A | FY12A | 1H13A | FY13E | FY14E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 23.3 | 60.7 | 78.7 | 174.9 | 117.5 | 288.0 | 361.0 |
| EBITDA, $m | 2.1 | 7.4 | 12.5 | 30.1 | 18.7 | 53.7 | 66.5 |
| EBIT, $m | 1.6 | 6.5 | 11.1 | 27.6 | 17.1 | 50.7 | 63.3 |
| Report NPAT, $m | 0.69 | 3.8 | 7.5 | 19.8 | 11.1 | ||
| Adj. NPAT, $m | 11.1 | 34.1 | 41.9 | ||||
| Reported EPS, ¢ | 1.00 | 2.00 | 4.00 | 9.00 | 4.00 | ||
| Adjusted EPS, ¢ | 4.00 | 12.40 | 14.80 | ||||
| EPS %FY/Growth | 50% | 44% | 350% | 0% | 38% | 19% | |
| Dividend, ¢ | 0 | 2.0 | 3.0 | 7.0 | 5.5 | 11.50 | 12.80 |
| Franking, % | - | -5.3356E+9% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | -1% | -1% | 0 | 17% | 16% | 18.6% | 18.4% |
| NPAT Margin | -5% | -5% | 0 | 11% | 9% | 11.8% | 11.6% |
| ROE, % | -8% | -8% | 6% | 11% | 5% | ||
| EBIT/Interest | -0.9 | -0.9 | 9.3 | 161.8 | 12.8 | ||
| Net Debt / Equity | 0.89 | 0.89 | 0.19 | 0.15 | 0.08 | ||
| CashFlow/Sh, ¢ | 0.4 | 1.8 | 4.0 | 9.3 | 6.3 | 14.5 | 17.5 |
| Y/E Shares, m | 121.6 | 186.7 | 203.8 | 246.1 | 272.2 |
| Notes |
| EPS Growth compared with the pcp is shown in most columns, except 1H10A and 1H11A which show the first half % of full year EPS. |
Half-yearly Performance & Estimates - GEM
| Year-end December | 1H10A | 1H11? | 1H12A | FY12A | FY13E | FY14E | |
|---|---|---|---|---|---|---|---|
| Sales, $m | 23.3 | 60.7 | 78.7 | 174.9 | 265.0 | 319.0 | |
| EBITDA, $m | 2.1 | 7.4 | 12.5 | 30.1 | 45.9 | 56.3 | |
| EBIT, $m | 1.6 | 6.5 | 11.1 | 27.6 | 43.5 | 53.5 | |
| Report NPAT, $m | 0.69 | 3.8 | 7.5 | 19.8 | |||
| Adj. NPAT, $m | 19.8 | 29.0 | 35.4 | ||||
| Reported EPS, ¢ | 1.00 | 2.00 | 4.00 | 9.00 | |||
| Adjusted EPS, ¢ | 9.00 | 11.30 | 12.50 | ||||
| EPS %FY/Growth | 50% | ****% | 44% | 350% | 26% | 11% | |
| Dividend, ¢ | 0 | 2.0 | 3.0 | 7.0 | 10.50 | 11.25 | |
| Franking, % | - | -5.3356E+9% | 100% | 100% | 100% | 100% | |
| EBITDA Margin | -1% | -1% | 15.9% | 17% | 17.3% | 17.6% | |
| NPAT Margin | -5% | -5% | 9.5% | 11% | 10.9% | 11.1% | |
| ROE, % | -8% | -8% | 6 | 11% | |||
| EBIT/Interest | -0.9 | -0.9 | 9.25 | 161.78 | |||
| Net Debt / Equity | 0.89 | 0.89 | 0.19 | 0.15 | |||
| CashFlow/Sh, ¢ | 0.4 | 1.8 | 4.0 | 9.3 | 7.4 | 13.5 | |
| Y/E Shares, m | 121.6 | 186.7 | 203.8 | 246.1 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns, except 1H11A and 1H12A which show the first half % of full year EPS. In a handful of cases, unadjusted share splits may give strange changes in ratios. |
Company Overview
Russell Research in the media
Stock Picks for Sunday Herald Sun – 25 August 2013
HOLD G8 Education, GEM, $2.70
The childcare group had an excellent half-year and we expect further acquisitions, rising margins and yields. Keep building your position.
Stock Picks for Sunday Herald Sun – 24 February 2013
BUY G8 Education, GEM, $1.79
This child care group, with some 250 care centres, has grown rapidly by acquisitions priced at four times EBIT. Expect strong profit growth.
Stock Picks for The Bull.com.au - 17 December 2012
HOLD G8 Education, GEM ($1.52)
G8 has established a portfolio of childcare centres totalling 166 in Australia and 18 in Singapore. A further 51 are franchised in Singapore. Acquisitions have come thick and fast, typically priced at 4 times earnings before interest and tax. A proven business model should generate more favourable acquisitions and enhance occupancy and margins.
Profile
G8 Education
Rating:
Category: Potent Stock ; Midcaps
Action:
Website: www.g8education.com.au
| ASX code: | GEM |
| Closing Price, 30/12/2013: | $ 3.220 |
| Market Capitalisation: | $ 958 million |
| 52 Week High: | $ 3.46 |
| 52 Week Low: | $ 1.52 |
| Sector: | Education Services |
| Index: | S&P/ASX 300 Index |
Summary of Fundamentals
| Year-end December | FY11A | FY12A | FY13E | FY14E |
|---|---|---|---|---|
| NPAT, $m | 13.9 | 19.7 | 34.7 | 49.1 |
| Reported EPS, ¢ | 7.00 | 9.00 | ||
| Adjusted EPS, ¢ | 9.20 | 12.30 | 15.70 | |
| EPS Growth, % | 75% | 31% | 34% | 28% |
| P/E Ratio, x | 46.00 | 35.00 | 26.18 | 20.51 |
| Dividend, ¢ | 4.0 | 7.0 | 12.00 | 15.10 |
| Franking, % | 25% | 100% | 100% | 100% |
| Div. Yield, % | 1.24 | 2.17 | 3.73 | 4.69 |
Notes
| Our Adjusted EPS is used for the last year and forward estimates and as basis for EPS Growth and P/E Ratio. We currently use Reported data for all historic NPAT, for the prior year EPS and as base for last year EPS growth. |
| Data & Chart sourced from IRESS Market Technology Ltd. |
One Year Chart
As at 30 December 2013
Other Highlights
| Sector: | Education Services |
| Return on Equity, FY12 : | 11% |
| Net Debt to Equity, FY12 : | 15 % |
| EBIT / Interest Cover, FY12 : | 161.78 x |
| Gicscode: | 25302010 |
| First Listed: | 5-Dec-07 |
Business Activities
G8 Education Limited (GEM, formerly Early Learning Services Limited) is a child care centre operator in Australia currently managing 108 child care centres. GEM conducts a range of child care service activities, including: the acquisition of child care c
Glossary:
| ♠ | "A Core Stock" - reliable long-term yield & growth |
| ♥ | "We like it" - a seasoned performer, growth & yield |
| ♦ | "A tough scout" - creating a potential breakthrough |
| ♣ | "A steady performer" - giving reliable yield or growth |
| Best Stocks | Portfolio of selected attractive investments |
| Potential | Stocks that may have good improvement prospects |
| Speculative | More risky usually smaller stocks with spec. upside |
| Midcaps | In RR Midcap Index, $ 70m to 1,500m market cap. |
| Large Stocks | Larger Stocks upwards of $ 1,500m market cap |