G8 Education Limited (GEM)
Views and News
Essentials
Half-yearly Performance & Estimates - GEM
| Year-end June | FY11A | 1H12A | FY12A | 1H13A | FY13A | FY14E | FY15E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 134.2 | 78.7 | 174.9 | 117.5 | 270.7 | 520.0 | 722.0 |
| EBITDA, $m | 21.5 | 12.5 | 30.1 | 18.6 | 52.1 | 109.1 | 153.3 |
| EBIT, $m | 19.8 | 11.0 | 27.6 | 17.1 | 48.6 | 99.6 | 144.9 |
| Report NPAT, $m | 13.9 | 7.5 | 19.8 | 11.0 | 32.3 | ||
| Adj. NPAT, $m | 32.3 | 62.0 | 89.2 | ||||
| Reported EPS, ¢ | 7.00 | 4.00 | 9.00 | 4.00 | 12.00 | ||
| Adjusted EPS, ¢ | 12.00 | 19.45 | 26.55 | ||||
| EPS %FY/Growth | 44% | 29% | 33% | 33% | 62% | 37% | |
| Dividend, ¢ | 4.0 | 3.0 | 7.0 | 5.5 | 12.0 | 15.75 | 20.25 |
| Franking, % | 25% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 16% | 0 | 17% | 16% | 19% | 21.0% | 21.2% |
| NPAT Margin | 10% | 0 | 11% | 9% | 12% | 11.9% | 12.4% |
| ROE, % | 12% | 6% | 11% | 5 | 11% | ||
| EBIT/Interest | 41.5 | 9.3 | 161.8 | 12.8 | 17.65 | ||
| Net Debt / Equity | 0.20 | 0.19 | 0.15 | 0.08 | 0.00 | ||
| CashFlow/Sh, ¢ | 6.3 | 4.0 | 9.3 | 6.3 | 15.6 | 24.9 | 32.1 |
| Y/E Shares, m | 187.4 | 203.8 | 246.1 | 272.2 | 300.3 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns except the first half years which show their percentage of full year EPS. In a handful of cases, unadjusted share splits, or changes between positive and negative values may give strange changes in ratios. |
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 |
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.
Company Overview
Profile
G8 Education
Rating:
Category: Potent Stock ; Large
Action:
Website: www.g8education.com.au
| ASX code: | GEM |
| Closing Price, 20/06/14: | $ 4.720 |
| Market Capitalisation: | $ 1,562 million |
| 52 Week High: | $ 5.10 |
| 52 Week Low: | $ 2.37 |
| Sector: | Education Services |
| Index: | S&P/ASX 300 Index |
Summary of Fundamentals
| Year-end December | FY12A | FY13A | FY14E | FY15E |
|---|---|---|---|---|
| NPAT, $m | 19.7 | 32.3 | 62.0 | 89.2 |
| Reported EPS, ¢ | 9.00 | 12.00 | ||
| Adjusted EPS, ¢ | 32.28 | 19.45 | 26.55 | |
| EPS Growth, % | 29% | 259% | -40% | 37% |
| P/E Ratio, x | 52.44 | 14.62 | 24.27 | 17.78 |
| Dividend, ¢ | 7.0 | 12.0 | 15.75 | 20.25 |
| Franking, % | 100% | 100% | 100% | 100% |
| Div. Yield, % | 1.48 | 2.54 | 3.34 | 4.29 |
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 23 June 2014
Other Highlights
| Sector: | Education Services |
| Return on Equity, FY13 : | 11% |
| Net Debt to Equity, FY13 : | 0 % |
| EBIT / Interest Cover, FY13 : | 17.65 x |
| Gicscode: | 25302010 |
| First Listed: | 05-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
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