Generation Development Group Limited

GDG.AX

Asset Management · Financial Services

Price

A$3.81

+0.02 (+0.53%)

Market Cap

A$1.52B

Exchange

Australian Securities Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Exceptional

Growth

Weak

Cash Flow

Mixed

Stability

Exceptional

Valuation

Data not available

Dividends

Weak

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Share count rising — dilution

+101.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 163.4M (2021) → 328.9M (2025)

Winston Score History

The full picture

Generation Development Group is an Australian financial services company that helps people grow and protect their wealth through investment and insurance products. Its main businesses include Lonsec, a financial research and ratings firm used by financial advisers, and Generation Life, which offers investment bonds — a tax-effective savings product popular with families saving for children's education or long-term goals. The company serves financial advisers, superannuation funds, and retail investors across Australia.

The company earns money through fees on funds under management, subscription and licensing fees for Lonsec's research services, and premiums from its life investment products. It operates entirely within Australia and has built a competitive position by combining financial research with tax-effective investment structures that few rivals offer together under one roof. The key growth driver is rising demand for tax-effective investment solutions as Australia's wealth management industry expands, though the company's negative return on invested capital and unusual margin profile suggest it is still working to scale its business efficiently.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-64.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-95.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

A$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

18.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

A$5.5B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Generation Development Group Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

69.2%

Premium pricing power — 69.2% gross margin

Profit after running costs

Operating Margin

155.3%

Excellent — 155.3% operating margin

Return on the money invested

ROCE

44.3%

Exceptional — 44.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

-42.0%

Shrinking sales (-42.0% YoY)

Profit growth

EPS YoY

-119.8%

Earnings shrinking (-119.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

24.1%

Converts sales into free cash efficiently (24.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.06

Conservative — low debt load (0.06)

Covers its interest

Interest Cover

100.00x

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

0.52%

Small dividend — 0.52% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+0.0%

Dividend flat

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