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G8 Education Limited
(Sydney:GEM)
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Rating:46Neutral
Price Target:
AU$0.09
â–¼(-38.00% Downside)
Action:Reiterated
Date:09/19/26
The score is primarily held back by deteriorating financial performance (large net loss, declining revenue, and significantly higher leverage) and a bearish technical trend (price below all key moving averages with negative MACD). These are partially offset by still-positive operating and free cash flow and an unusually high dividend yield, though the yield appears risky given the latest earnings and balance-sheet pressure.
Positive Factors
Positive Cash Generation
The business continues to convert operations into meaningful cash, with operating cash flow broadly steady and free cash flow remaining positive. This supports ongoing investment and financial obligations, although the recent decline means cash generation should be monitored for durability.
Negative Factors
Revenue Contraction
The latest revenue decline signals weakening top-line performance across the centre network and reduces the base from which earnings can grow. If sustained, lower revenue can pressure utilisation, pricing leverage, and the company’s ability to absorb largely ongoing operating costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Cash Generation
The business continues to convert operations into meaningful cash, with operating cash flow broadly steady and free cash flow remaining positive. This supports ongoing investment and financial obligations, although the recent decline means cash generation should be monitored for durability.
Read all positive factors
G8 Education Limited (GEM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$72.53M
Dividend Yield21.05%
Average Volume (3M)6.75M
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-10.83%
EPS Growth-649.32%
CountryAU
Employees8,265
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.48
Shares Outstanding771,558,800
10 Day Avg. Volume2,565,107
30 Day Avg. Volume6,746,037
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$0.17Price Target Upside15.56% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.03
Revenue Forecast (FY)AU$827.07M
G8 Education Limited Business Overview & Revenue Model
Company Description
Headquartered in Varsity Lakes, Australia, G8 Education Limited is an Australian firm specializing in early childhood education and care provisions. The company operates a wide array of services catering to young learners, encompassing numerous we...
How the Company Makes Money
G8 Education primarily makes money by operating childcare and early learning centres and charging fees for care and education services delivered to children enrolled at those centres. Revenue is generated from parent (or guardian) out-of-pocket pa...
G8 Education Limited Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
35
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 891.27M | 946.84M | 1.02B | 983.44M | 901.29M | 845.07M |
| Gross Profit | 201.66M | 231.96M | 929.21M | 891.85M | 209.39M | 185.08M |
| EBITDA | 201.98M | 235.86M | 258.64M | 237.81M | 201.33M | 207.48M |
| Net Income | -364.56M | -303.31M | 67.69M | 56.06M | 36.61M | 45.68M |
Balance Sheet | ||||||
| Total Assets | 1.47B | 1.70B | 1.91B | 1.90B | 1.91B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 36.39M | 38.09M | 47.68M | 40.25M | 37.83M | 74.13M |
| Total Debt | 777.87M | 819.08M | 783.99M | 778.13M | 713.55M | 728.91M |
| Total Liabilities | 983.86M | 1.17B | 991.07M | 997.29M | 1.02B | 1.07B |
| Stockholders Equity | 486.42M | 525.68M | 916.31M | 905.50M | 883.36M | 914.71M |
Cash Flow | ||||||
| Free Cash Flow | 72.81M | 117.08M | 134.54M | 156.99M | 77.16M | 41.59M |
| Operating Cash Flow | 132.02M | 168.04M | 167.06M | 201.51M | 136.76M | 84.27M |
| Investing Cash Flow | -63.58M | -64.35M | -44.34M | -56.75M | -59.30M | -53.28M |
| Financing Cash Flow | -69.88M | -113.28M | -115.28M | -142.34M | -113.77M | -273.84M |
G8 Education Limited Technical Analysis
Negative
0.15
Price Trends
0.12
Negative
0.13
Negative
0.26
Negative
Market Momentum
>-0.01
Negative
26.34
Positive
<0.01
Positive
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 0.15 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.12, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 26.34 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$34.91M | 14.62 | 13.76% | 10.53% | -4.20% | ― | |
70 Outperform | AU$124.53M | 7.66 | 89.61% | 6.03% | 63.49% | 126.48% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | AU$81.46M | -11.47 | -9.41% | 15.00% | 5.99% | -145.93% | |
52 Neutral | AU$55.60M | 13.92 | 3.46% | 36.79% | 1.98% | -72.40% | |
47 Neutral | AU$11.36M | -8.32 | -9.50% | 6.02% | -7.02% | -11.46% | |
46 Neutral | AU$72.53M | -0.19 | -72.04% | 21.05% | -10.83% | -649.32% |
* Consumer Defensive Sector Average
AU:GEM
G8 Education Limited
0.09
-0.73
-88.54%
AU:EVO
Evolve Education Group Ltd
0.40
-0.20
-33.55%
AU:EDU
EDU Holdings Limited
1.00
0.31
46.11%
AU:AKG
Academies Australasia Group Limited
0.09
-0.03
-25.83%
AU:KME
Kip McGrath Education Centres Limited
0.67
0.13
25.00%
AU:NDO
Nido Education Limited
0.25
-0.37
-60.36%
G8 Education Limited Corporate Events
Citi Group Entities Exit Substantial Holder Status in G8 Education
Sep 10, 2026
Citigroup Global Markets Australia Pty Limited and related Citi group entities have notified G8 Education that they have ceased to be a substantial shareholder in the company as of 8 September 2026. The change reflects shifts in relevant interests...
S&P Dow Jones Unveils September Rebalance of Key S&P/ASX Indices
Sep 4, 2026
SP Dow Jones Indices has announced the September 2026 quarterly rebalance of the SP/ASX indices, with several additions and removals across the SP/ASX 50, 100, 200 and 300 benchmarks, effective before the market open on 21 September 2026. While th...
Citi Group Entities Exit Substantial Holder Status in G8 Education
Sep 3, 2026
Citigroup Global Markets Australia Pty Limited and related Citi group entities have disclosed that they have ceased to be substantial holders in G8 Education Limited as of 1 September 2026, following reductions in their relevant interests in the c...
G8 Education refreshes Board with new Audit & Risk Committee Chair
Aug 24, 2026
G8 Education has announced a series of Board changes, appointing Anne Lockwood as a Non-Executive Director from 1 September 2026 and as Chair of the Audit Risk Management Committee from 21 October 2026. The moves coincide with the resignation of ...
G8 Education Swings to Loss as Occupancy Falls, Tightens Operations
Aug 24, 2026
G8 Education reported a challenging first half of 2026, with group revenue falling 11.1% to $413.6 million and a statutory net loss after tax of $38.8 million, mainly due to around $47 million in impairment charges. Operating EBIT dropped 63.7% to...
G8 Education Posts Half-Year Loss and Suspends Dividends as Revenue Falls
Aug 24, 2026
G8 Education, a leading ASX-listed provider of early childhood education and care services in Australia, reported materially weaker financial results for the half year ended 30 June 2026. Revenue from ordinary activities fell 11.1% to $413.6 milli...
G8 Education Reports Lapse of Performance Rights, Reducing Potential Dilution
Aug 6, 2026
G8 Education Limited, an Australian-listed provider of childcare and early education services, manages a portfolio of centres nationwide and uses performance-based equity incentives as part of its capital and remuneration framework. The company is...
G8 Education Sets Date for Release of 2026 Half-Year Results
Aug 2, 2026
G8 Education Limited, a leading Australian childcare and early education provider listed on the ASX, operates an extensive network of centres that serve families nationwide. Its business is closely tied to broader trends in early learning policy, ...
Vanguard Trims Stake Below Substantial Holder Threshold in G8 Education
Jul 26, 2026
Vanguard Group has notified G8 Education Limited that it has ceased to be a substantial holder in the childcare operator. The asset manager now holds 4.977% of G8 Education’s voting power, down from a previously higher stake, reflecting a re...
G8 Education Extends Debt Facility Maturity to Bolster Funding Profile
Jul 6, 2026
G8 Education Limited has extended the maturity of one of its $100 million revolving debt facilities from December 2027 to January 2029, while its other $100 million revolving facility and $40 million bank guarantee facility still mature in Decembe...
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.