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Is Generation Development Group Limited's (ASX:GDG) Recent Performance Tethered To Its Attractive Financial Prospects?
Is Generation Development Group Limited's (ASX:GDG) Recent Performance Tethered To Its Attractive Financial Prospects?

Yahoo

time23-05-2025

  • Business
  • Yahoo

Is Generation Development Group Limited's (ASX:GDG) Recent Performance Tethered To Its Attractive Financial Prospects?

Generation Development Group's (ASX:GDG) stock up by 2.4% over the past week. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Generation Development Group's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Our free stock report includes 2 warning signs investors should be aware of before investing in Generation Development Group. Read for free now. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Generation Development Group is: 23% = AU$80m ÷ AU$346m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every A$1 worth of equity, the company was able to earn A$0.23 in profit. Check out our latest analysis for Generation Development Group So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. First thing first, we like that Generation Development Group has an impressive ROE. Secondly, even when compared to the industry average of 16% the company's ROE is quite impressive. So, the substantial 80% net income growth seen by Generation Development Group over the past five years isn't overly surprising. As a next step, we compared Generation Development Group's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 19%. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Generation Development Group is trading on a high P/E or a low P/E, relative to its industry. Generation Development Group's significant three-year median payout ratio of 84% (where it is retaining only 16% of its income) suggests that the company has been able to achieve a high growth in earnings despite returning most of its income to shareholders. Moreover, Generation Development Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 44% over the next three years. Still forecasts suggest that Generation Development Group's future ROE will drop to 8.5% even though the the company's payout ratio is expected to decrease. This suggests that there could be other factors could driving the anticipated decline in the company's ROE. In total, we are pretty happy with Generation Development Group's performance. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that's probably a good sign. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Is Generation Development Group Limited's (ASX:GDG) Recent Performance Tethered To Its Attractive Financial Prospects?
Is Generation Development Group Limited's (ASX:GDG) Recent Performance Tethered To Its Attractive Financial Prospects?

Yahoo

time23-05-2025

  • Business
  • Yahoo

Is Generation Development Group Limited's (ASX:GDG) Recent Performance Tethered To Its Attractive Financial Prospects?

Generation Development Group's (ASX:GDG) stock up by 2.4% over the past week. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Generation Development Group's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Our free stock report includes 2 warning signs investors should be aware of before investing in Generation Development Group. Read for free now. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Generation Development Group is: 23% = AU$80m ÷ AU$346m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every A$1 worth of equity, the company was able to earn A$0.23 in profit. Check out our latest analysis for Generation Development Group So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. First thing first, we like that Generation Development Group has an impressive ROE. Secondly, even when compared to the industry average of 16% the company's ROE is quite impressive. So, the substantial 80% net income growth seen by Generation Development Group over the past five years isn't overly surprising. As a next step, we compared Generation Development Group's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 19%. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Generation Development Group is trading on a high P/E or a low P/E, relative to its industry. Generation Development Group's significant three-year median payout ratio of 84% (where it is retaining only 16% of its income) suggests that the company has been able to achieve a high growth in earnings despite returning most of its income to shareholders. Moreover, Generation Development Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 44% over the next three years. Still forecasts suggest that Generation Development Group's future ROE will drop to 8.5% even though the the company's payout ratio is expected to decrease. This suggests that there could be other factors could driving the anticipated decline in the company's ROE. In total, we are pretty happy with Generation Development Group's performance. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that's probably a good sign. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Generation Development Group First Half 2025 Earnings: EPS: AU$0.26 (vs AU$0.023 in 1H 2024)
Generation Development Group First Half 2025 Earnings: EPS: AU$0.26 (vs AU$0.023 in 1H 2024)

Yahoo

time03-03-2025

  • Business
  • Yahoo

Generation Development Group First Half 2025 Earnings: EPS: AU$0.26 (vs AU$0.023 in 1H 2024)

Revenue: AU$375.4m (up 157% from 1H 2024). Net income: AU$78.9m (up by AU$74.5m from 1H 2024). Profit margin: 21% (up from 3.0% in 1H 2024). The increase in margin was driven by higher revenue. EPS: AU$0.26 (up from AU$0.023 in 1H 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to decline by 35% p.a. on average during the next 3 years, while revenues in the Insurance industry in Australia are expected to remain flat. Performance of the Australian Insurance industry. The company's shares are up 4.4% from a week ago. You should always think about risks. Case in point, we've spotted 2 warning signs for Generation Development Group 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

Catalyst Metals And 2 Other Undiscovered Gems with Strong Fundamentals
Catalyst Metals And 2 Other Undiscovered Gems with Strong Fundamentals

Yahoo

time14-02-2025

  • Business
  • Yahoo

Catalyst Metals And 2 Other Undiscovered Gems with Strong Fundamentals

As the Australian market navigates through a period of cautious optimism, with the ASX200 inching up by 0.5% amidst ongoing speculation about the Reserve Bank of Australia's impending rate decision, investors are keenly observing sectors like IT and Staples that have shown robust performance. In this context, identifying stocks with strong fundamentals becomes crucial for those looking to capitalize on potential opportunities; Catalyst Metals and two other lesser-known companies stand out as promising contenders in today's dynamic landscape. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Schaffer 24.98% 2.97% -6.23% ★★★★★★ Fiducian Group NA 9.94% 6.48% ★★★★★★ Sugar Terminals NA 3.14% 3.53% ★★★★★★ Bailador Technology Investments NA 11.17% 10.16% ★★★★★★ Lycopodium NA 17.22% 33.85% ★★★★★★ Djerriwarrh Investments 1.14% 8.17% 7.54% ★★★★★★ Red Hill Minerals NA 75.05% 36.74% ★★★★★★ Steamships Trading 33.60% 4.17% 3.90% ★★★★★☆ K&S 16.07% 0.09% 33.40% ★★★★☆☆ Hearts and Minds Investments 1.00% 18.81% 20.95% ★★★★☆☆ Click here to see the full list of 49 stocks from our ASX Undiscovered Gems With Strong Fundamentals screener. Below we spotlight a couple of our favorites from our exclusive screener. Simply Wall St Value Rating: ★★★★☆☆ Overview: Catalyst Metals Limited engages in the exploration and evaluation of mineral properties in Australia, with a market capitalization of approximately A$942.35 million. Operations: Catalyst Metals generates revenue primarily from its operations in Western Australia (A$243.77 million) and Tasmania (A$75.08 million). Catalyst Metals, a promising player in the Australian mining sector, has shown noteworthy progress recently. The company reported gold production of 28.4koz for the December 2024 quarter, with Henty contributing 6.6koz and Plutonic delivering 21.8koz. Trading at a significant discount of 55% below its estimated fair value, Catalyst seems undervalued in the market. Its debt is well-covered by EBIT at a ratio of 6x, and it holds more cash than total debt, indicating strong financial health despite an increase in its debt to equity ratio from 0% to 1.8% over five years. Click here to discover the nuances of Catalyst Metals with our detailed analytical health report. Learn about Catalyst Metals' historical performance. Simply Wall St Value Rating: ★★★★★★ Overview: Generation Development Group Limited is an Australian company that focuses on the marketing and management of life insurance and life investment products and services, with a market capitalization of A$1.46 billion. Operations: Generation Development Group's revenue primarily comes from Benefit Funds, contributing A$316.26 million, and Benefit Funds Management & Funds Administration, adding A$37.26 million. The company's net profit margin shows a significant trend worth noting at 20%. Generation Development Group, an intriguing player in the Australian market, operates debt-free and showcases robust financial health. With earnings growth of 30.3% last year, it outpaced the insurance industry average of 25.4%. Despite substantial shareholder dilution recently due to a follow-on equity offering worth A$287.93 million, its forecasted annual earnings growth is a promising 42.47%. The recent acquisition of Evidentia Group Holdings Pty Ltd and leadership changes with Grant Hackett as CEO reflect strategic maneuvers aimed at future expansion. These moves suggest GDG's intent to strengthen its position while leveraging high-quality earnings for sustained success. Click to explore a detailed breakdown of our findings in Generation Development Group's health report. Review our historical performance report to gain insights into Generation Development Group's's past performance. Simply Wall St Value Rating: ★★★★☆☆ Overview: Ora Banda Mining Limited focuses on the exploration, operation, and development of mineral properties in Australia with a market capitalization of A$1.79 billion. Operations: Ora Banda Mining generates revenue primarily from gold mining, amounting to A$214.24 million. Ora Banda Mining, a small player in the Australian mining sector, has recently turned profitable, contrasting with the industry's modest 0.7% growth. Trading at a significant discount of 56.6% below its estimated fair value, OBM presents an intriguing opportunity for investors seeking undervalued assets. The company's interest payments are well covered by EBIT at 7.8 times over, reflecting strong financial management despite its debt to equity ratio rising to 4.1% over five years. With earnings projected to grow annually by nearly 45%, OBM seems positioned for promising future performance within the metals and mining landscape. Unlock comprehensive insights into our analysis of Ora Banda Mining stock in this health report. Understand Ora Banda Mining's track record by examining our Past report. Delve into our full catalog of 49 ASX Undiscovered Gems With Strong Fundamentals here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include ASX:CYL ASX:GDG and ASX:OBM. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@

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