Latest news with #G8Education
Yahoo
07-05-2025
- Business
- Yahoo
G8 Education Limited (ASX:GEM) is a favorite amongst institutional investors who own 70%
Key Insights Institutions' substantial holdings in G8 Education implies that they have significant influence over the company's share price A total of 5 investors have a majority stake in the company with 54% ownership Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you want to know who really controls G8 Education Limited (ASX:GEM), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 70% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's delve deeper into each type of owner of G8 Education, beginning with the chart below. Check out our latest analysis for G8 Education ASX:GEM Ownership Breakdown May 7th 2025 What Does The Institutional Ownership Tell Us About G8 Education? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors have a fair amount of stake in G8 Education. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of G8 Education, (below). Of course, keep in mind that there are other factors to consider, too. ASX:GEM Earnings and Revenue Growth May 7th 2025 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. G8 Education is not owned by hedge funds. The company's largest shareholder is Australian Retirement Trust Pty Ltd, with ownership of 16%. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 9.0% by the third-largest shareholder. On looking further, we found that 54% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
Yahoo
25-03-2025
- Business
- Yahoo
Returns On Capital Are Showing Encouraging Signs At G8 Education (ASX:GEM)
What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, we've noticed some promising trends at G8 Education (ASX:GEM) so let's look a bit deeper. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for G8 Education, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.093 = AU$153m ÷ (AU$1.9b - AU$262m) (Based on the trailing twelve months to December 2024). So, G8 Education has an ROCE of 9.3%. Even though it's in line with the industry average of 9.4%, it's still a low return by itself. See our latest analysis for G8 Education In the above chart we have measured G8 Education's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for G8 Education . G8 Education has not disappointed with their ROCE growth. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 21% over the last five years. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects. In summary, we're delighted to see that G8 Education has been able to increase efficiencies and earn higher rates of return on the same amount of capital. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 94% return over the last five years. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. Like most companies, G8 Education does come with some risks, and we've found 1 warning sign that you should be aware of. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
25-02-2025
- Business
- Yahoo
G8 Education Full Year 2024 Earnings: EPS Misses Expectations
Revenue: AU$1.02b (up 3.9% from FY 2023). Net income: AU$67.7m (up 21% from FY 2023). Profit margin: 6.6% (up from 5.7% in FY 2023). The increase in margin was driven by higher revenue. EPS: AU$0.084 (up from AU$0.069 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.3%. Looking ahead, revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Consumer Services industry in Australia. Performance of the Australian Consumer Services industry. The company's shares are down 3.7% from a week ago. You should always think about risks. Case in point, we've spotted 1 warning sign for G8 Education you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
Is Now The Time To Look At Buying G8 Education Limited (ASX:GEM)?
G8 Education Limited (ASX:GEM), is not the largest company out there, but it received a lot of attention from a substantial price movement on the ASX over the last few months, increasing to AU$1.39 at one point, and dropping to the lows of AU$1.26. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether G8 Education's current trading price of AU$1.38 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at G8 Education's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for G8 Education The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that G8 Education's ratio of 17.92x is trading slightly below its industry peers' ratio of 19.4x, which means if you buy G8 Education today, you'd be paying a decent price for it. And if you believe G8 Education should be trading in this range, then there isn't much room for the share price to grow beyond the levels of other industry peers over the long-term. Is there another opportunity to buy low in the future? Since G8 Education's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by 37% over the next couple of years, the future seems bright for G8 Education. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? GEM's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at GEM? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you've been keeping tabs on GEM, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for GEM, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 1 warning sign for G8 Education you should be aware of. If you are no longer interested in G8 Education, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
The Guardian
08-02-2025
- Business
- The Guardian
Australia's largest childcare provider faces activist pressure to give staff paid parental leave
Australian employers commonly offer paid parental leave – in addition to the government scheme – to attract and retain workers in a competitive jobs market. But the largest listed childcare provider in Australia, G8 Education, has no such policy, drawing the attention of activist shareholders who want to pressure it to change. James Alexander, from the Sustainable Investment Exchange (Six), said the platform is preparing to lodge a shareholder resolution on the issue at the education provider's annual general meeting in May. 'The people we trust to look after our children are not supported to look after their own,' said Alexander. 'We've spoken to the company and they have refused to change their stance.' Six describes itself as 'like CommSec for ethical investors' by enabling investors who buy shares through the platform to pressure companies to make improvements to their environmental or social policies. This can be done via a resolution, which requires the support of 100 shareholders to call. Large investors with at least 5% of voting rights have the same rights. While the results of a resolution are non-binding, such strategies are frequently used overseas to express shareholder views, which can prompt a board to take action or risk an investor backlash. Sign up for Guardian Australia's breaking news email Alexander said the campaign has the support of major investment and superannuation funds to change G8's policy. A G8 spokesperson said the company provides team members with meaningful benefits that include staff childcare discounts, six weeks annual leave for teachers and above-award pay. 'At G8 Education we recognise that our team members are our biggest asset, and we do our best to provide a supportive and inclusive working environment,' the spokesperson said. The spokesperson said the company will 'continue to evaluate our employment terms, conditions, and benefits'. G8 runs more than 430 childcare centres around Australia and employs about 10,000 people, mainly women. The sector has modest pay levels and experiences significant turnover rates, prompting Labor to strike a deal last year to give early childhood education workers a government-funded 15% pay rise, phased in over two years, if centres limit fee increases. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion About 68% of employers in Australia offer employer-paid parental leave, in addition to the government scheme, according to 2023-24 data. The percentage has been rising quickly in recent years with some organisations now offering equal parental leave for men and women. Parental schemes are now expected among major companies, with some legal and accounting firms offering up to six months of paid leave in addition to the government's minimum wage scheme. Many miners have also sought to become more family friendly, and now offer at least 18 weeks of paid leave for parents of newborn or newly adopted children. Childcare providers tend to have more modest schemes, ranging from zero to 11 weeks of employer-paid leave, according to G8 analysis. Many are not-for-profit providers. The chief executive of advocacy group The Parenthood, Georgie Dent, said while parental leave is primarily a health policy, it also has financial advantages for companies. 'A lot of larger employers have used their parental leave settings as a key tool to attract and retain staff,' said Dent. 'The evidence base is really clear that paying parental leave is far more cost effective than constantly recruiting to replace staff.' She said paid parental leave schemes are also leading to greater workforce participation, which is good for the broader economy. 'It really does keep parents connected to their employer,' said Dent. 'When you have that connection, it becomes perfectly normal and reasonable for people to go off and have a baby, and then normal for them to return when they are ready.'
