# Generation Development Group (GDG.AU)

Canonical: https://gigainvestors.com/s/GDG.AU

Analysis as of: 2026-10-16T07:44:40.778Z. Financial observations: FY2004–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 3.14 per share; close as of 2026-10-15.

Estimated value: low AUD 16.51 per share, central AUD 16.93 per share, high AUD 17.17 per share. Buy at or below the central value AUD 16.93 per share. Valuation as of 2026-10-16T07:44:40.778Z; scenarios are not confidence intervals.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 2.82×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.17×

- FY2018: 0.18×

- FY2019: 0.18×

- FY2020: -0.85×

- FY2021: 2.14×

- FY2022: -2.28×

- FY2023: 3.38×

- FY2024: 0.88×

- FY2025: 0.71×

- FY2026: 1.04×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 11.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 46.1%

- ROIC, second-lowest year: -213.6%

- Typical minus recent gross margin: 11.2 pp

- Typical gross margin (annual median): 88.4%

- Recent gross margin (lower of latest and 3-year median): 77.2%

- Years with nonpositive capital: 8

- Capital spending / revenue: 0.7%

- ROIC including acquisitions, ten-year median: 3.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -13.8%

- FY2018: 74.6%

- FY2019: 45.4%

- FY2020: -213.6%

- FY2021: >100%

- FY2022: -268.7%

- FY2023: >100%

- FY2024: 96.2%

- FY2025: 46.8%

- FY2026: 31.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.40×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 115M

- Net income, five-year total: AUD 82M

- Return on incremental invested capital: 503.3%

- Working capital / revenue, annual change: -61.8 pp

- Working capital / revenue, change between three-year averages: -902.4 pp

- Working capital / revenue, final three-year average: 13.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.25×

- FY2023: 1.13×

- FY2024: 1.16×

- FY2025: 1.27×

- FY2026: 1.71×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 45.4% vs 46.8%

- Per-share earnings: 0.00 to 0.08 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 14.2%

- Ordinary dilution, 5-year annual growth: 17.1%

- Market cap gain: AUD 1.4B

- Cumulative retained earnings: AUD -23M

- Diluted shares, 10-year annual growth: 14.2%

- Diluted shares, 5-year annual growth: 17.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 49.8%

- Per-share value change: AUD 0.08

- Per-share value, starting three-year median: AUD 0.00

- Per-share value, ending three-year median: AUD 0.08

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 10.7%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 742M

- Cumulative net income, 10 years: AUD 89M

- ROIC, first three-year median: 45.4%

- ROIC, last three-year median: 46.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.00

- FY2018: AUD 0.00

- FY2019: AUD 0.04

- FY2020: AUD -0.01

- FY2021: AUD 0.01

- FY2022: AUD 0.01

- FY2023: AUD 0.02

- FY2024: AUD 0.03

- FY2025: AUD 0.10

- FY2026: AUD 0.08

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -0.1%

- Receivables to sales index (DSRI): 7.93×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.21×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.01×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -0.2%

- FY2018: 0.0%

- FY2019: 0.6%

- FY2020: -2.8%

- FY2021: -1.3%

- FY2022: -0.1%

- FY2023: -0.2%

- FY2024: -0.4%

- FY2025: 0.5%

- FY2026: -0.1%

## Holders

## Price story

Down 56% since Oct 2025 · sales -40.9%

Story as of 2026-10-16T10:00:13.126Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales -40.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 8.4M 

- FY2018: AUD 67M 

- FY2019: AUD 82M 

- FY2020: AUD 57M 

- FY2021: AUD 113M 

- FY2022: AUD 93M 

- FY2023: AUD 59M 

- FY2024: AUD 326M 

- FY2025: AUD 616M 

- FY2026: AUD 364M 

### Gross margin · FY2026

gross margin 77.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 71.3% 

- FY2018: 86.1% 

- FY2019: 95.0% 

- FY2020: 90.9% 

- FY2021: 94.4% 

- FY2022: 90.7% 

- FY2023: 83.6% 

- FY2025: 1.3% 

- FY2026: 77.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are AUD 364 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2026: revenue 364006000; grossProfit 280918000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GDG.AU: Generation Development Group Limited engages in the diversified financial service business in Australia. The company operates through Benefit Funds Management and Funds Administration (Generation Life), Research and Ratings (Lonsec), and Managed Account Businesses (Evidentia) segments. It offers investment-linked savings and retirement income solutions; and investment bond products, funeral bond products, and investment-linked lifetime annuities, as well as investment research, ratings, governance, and portfolio services, which connect financial advisers, fund managers, and super funds with tools, data, and insights. The company also provides outsourced investment management, portfolio construction, and tailored managed account solutions. The company was formerly known as Austock Group Limited and changed its name to Generation Development Group Limited in March 2018. Generation Development Group Limited was founded in 1991 and is based in Melbourne, Australia.

### Why customers stay

It earns 46.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2024: grossProfit / revenue = 100.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2025: grossProfit / revenue = 1.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2026: grossProfit / revenue = 77.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); 10-year return on capital observations [[2017,-0.13750917051236541],[2018,0.746358595194085],[2019,0.45391267366033455],[2020,-2.1361716781454727],[2021,3.12182428977229],[2022,-2.6870458196773988],[2023,2.4089734050616],[2024,0.9621854345439658],[2025,0.46765697935780465],[2026,0.3166748398526259]]; median 0.4607848265090696. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2018: growth capex 0; upkeep 182000; owner earnings 414000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2019: growth capex 75000; upkeep 437000; owner earnings 5286000. Growth capex / owner earnings = 0.014188422247446084.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2021: growth capex 68000; upkeep 832000; owner earnings 1574800. Growth capex / owner earnings = 0.04318008636017272.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2022: growth capex 0; upkeep 1889000; owner earnings 479400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2023: growth capex 0; upkeep 429000; owner earnings 5079600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2024: growth capex 0; upkeep 149000; owner earnings 6748000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2025: growth capex 0; upkeep 4148000; owner earnings 48473400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); FY2026: growth capex 0; upkeep 528000; owner earnings 54657600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); Dividend observations: [[2017,2064000],[2018,2478000],[2019,2496000],[2020,2508000],[2021,2888000],[2022,3303000],[2023,3563000],[2024,3527000],[2025,9117000],[2026,7967000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 14% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GDG.AU SharesStats.PercentInsiders = 14.049 percentage points; cache date 2026-10-16.

### What the price says

The price is 3.5 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:40.778Z); Closing price 3.14 AUD; reporting-to-trading FX 1; FY2026 annual sales per share 0.8975832476245875; price multiple 3.4982827590754. FY2026 cash earnings/share 0.13477730069110305. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.46 per share

- 2016-11: AUD 0.46 per share

- 2016-12: AUD 0.49 per share

- 2017-01: AUD 0.68 per share

- 2017-02: AUD 0.60 per share

- 2017-03: AUD 0.57 per share

- 2017-04: AUD 0.60 per share

- 2017-05: AUD 0.64 per share

- 2017-06: AUD 0.65 per share

- 2017-07: AUD 0.83 per share

- 2017-08: AUD 0.90 per share

- 2017-09: AUD 0.95 per share

- 2017-10: AUD 0.92 per share

- 2017-11: AUD 1.18 per share

- 2017-12: AUD 1.26 per share

- 2018-01: AUD 1.62 per share

- 2018-02: AUD 1.37 per share

- 2018-03: AUD 1.11 per share

- 2018-04: AUD 1.03 per share

- 2018-05: AUD 1.19 per share

- 2018-06: AUD 1.13 per share

- 2018-07: AUD 1.17 per share

- 2018-08: AUD 1.14 per share

- 2018-09: AUD 1.11 per share

- 2018-10: AUD 0.92 per share

- 2018-11: AUD 0.68 per share

- 2018-12: AUD 0.62 per share

- 2019-01: AUD 0.73 per share

- 2019-02: AUD 0.59 per share

- 2019-03: AUD 0.59 per share

- 2019-04: AUD 0.59 per share

- 2019-05: AUD 0.56 per share

- 2019-06: AUD 0.51 per share

- 2019-07: AUD 0.49 per share

- 2019-08: AUD 0.49 per share

- 2019-09: AUD 0.64 per share

- 2019-10: AUD 0.70 per share

- 2019-11: AUD 0.68 per share

- 2019-12: AUD 0.71 per share

- 2020-01: AUD 0.84 per share

- 2020-02: AUD 0.71 per share

- 2020-03: AUD 0.56 per share

- 2020-04: AUD 0.65 per share

- 2020-05: AUD 0.68 per share

- 2020-06: AUD 0.63 per share

- 2020-07: AUD 0.72 per share

- 2020-08: AUD 0.76 per share

- 2020-09: AUD 0.74 per share

- 2020-10: AUD 0.67 per share

- 2020-11: AUD 0.68 per share

- 2020-12: AUD 0.68 per share

- 2021-01: AUD 0.70 per share

- 2021-02: AUD 0.69 per share

- 2021-03: AUD 0.82 per share

- 2021-04: AUD 0.86 per share

- 2021-05: AUD 0.89 per share

- 2021-06: AUD 0.86 per share

- 2021-07: AUD 1.06 per share

- 2021-08: AUD 1.19 per share

- 2021-09: AUD 1.21 per share

- 2021-10: AUD 1.38 per share

- 2021-11: AUD 1.35 per share

- 2021-12: AUD 1.44 per share

- 2022-01: AUD 1.48 per share

- 2022-02: AUD 1.55 per share

- 2022-03: AUD 1.56 per share

- 2022-04: AUD 1.69 per share

- 2022-05: AUD 1.50 per share

- 2022-06: AUD 1.25 per share

- 2022-07: AUD 1.43 per share

- 2022-08: AUD 1.39 per share

- 2022-09: AUD 1.25 per share

- 2022-10: AUD 1.14 per share

- 2022-11: AUD 1.26 per share

- 2022-12: AUD 1.24 per share

- 2023-01: AUD 1.32 per share

- 2023-02: AUD 1.27 per share

- 2023-03: AUD 1.29 per share

- 2023-04: AUD 1.34 per share

- 2023-05: AUD 1.30 per share

- 2023-06: AUD 1.26 per share

- 2023-07: AUD 1.34 per share

- 2023-08: AUD 1.41 per share

- 2023-09: AUD 1.57 per share

- 2023-10: AUD 1.50 per share

- 2023-11: AUD 1.69 per share

- 2023-12: AUD 1.75 per share

- 2024-01: AUD 1.88 per share

- 2024-02: AUD 1.91 per share

- 2024-03: AUD 2.10 per share

- 2024-04: AUD 2.29 per share

- 2024-05: AUD 2.19 per share

- 2024-06: AUD 2.60 per share

- 2024-07: AUD 2.62 per share

- 2024-08: AUD 2.78 per share

- 2024-09: AUD 2.83 per share

- 2024-10: AUD 3.44 per share

- 2024-11: AUD 3.77 per share

- 2024-12: AUD 3.60 per share

- 2025-01: AUD 4.57 per share

- 2025-02: AUD 5.18 per share

- 2025-03: AUD 4.98 per share

- 2025-04: AUD 4.12 per share

- 2025-05: AUD 5.54 per share

- 2025-06: AUD 5.50 per share

- 2025-07: AUD 6.06 per share

- 2025-08: AUD 6.90 per share

- 2025-09: AUD 6.96 per share

- 2025-10: AUD 7.16 per share

- 2025-11: AUD 6.60 per share

- 2025-12: AUD 5.89 per share

- 2026-01: AUD 5.38 per share

- 2026-02: AUD 4.65 per share

- 2026-03: AUD 4.20 per share

- 2026-04: AUD 3.88 per share

- 2026-05: AUD 4.08 per share

- 2026-06: AUD 3.58 per share

- 2026-07: AUD 4.11 per share

- 2026-08: AUD 3.18 per share

- 2026-09: AUD 2.75 per share

- 2026-10: AUD 2.71 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 0.27 per share, central AUD 0.30 per share, high AUD 0.34 per share

- FY2018: low AUD 0.15 per share, central AUD 0.15 per share, high AUD 0.16 per share

- FY2019: low AUD 0.71 per share, central AUD 0.95 per share, high AUD 1.08 per share

- FY2020: low AUD 0.02 per share, central AUD 0.03 per share, high AUD 0.03 per share

- FY2021: low AUD 0.04 per share, central AUD 0.05 per share, high AUD 0.05 per share

- FY2022: low AUD 0.03 per share, central AUD 0.04 per share, high AUD 0.04 per share

- FY2023: low AUD 0.05 per share, central AUD 0.05 per share, high AUD 0.06 per share

- FY2024: low AUD 1.62 per share, central AUD 1.76 per share, high AUD 1.84 per share

- FY2025: low AUD 0.77 per share, central AUD 0.82 per share, high AUD 0.88 per share

- FY2026: low AUD 16.34 per share, central AUD 16.75 per share, high AUD 16.99 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:50:55.592Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.