Goodman Group (GMG.AX) stock analysis

In our weekly check, Goodman Group is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 3.

About Goodman Group

Goodman Group is a Real Estate company (REIT - Diversified) based in Australia, listed on ASX as GMG.AX.

What our checks show for GMG.AX

Red flags

• The net margin fell by 61.4 points over 5 years, to 105%: the company keeps less of each sale as profit.
• Analysts expect the net margin to shrink by 23.1 points from today's 105%.
• Return on capital (ROCE) is only 4.1%.

Warning signs

• Operating cash flow is only 0.69x net profit: part of the reported profit does not arrive as cash.
• The stock has fallen as much as 42% from a peak. Would you have held through that?

Strengths

• Net debt is only 0.7x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 101 times over.
• Analysts expect revenue to grow about 19.6% a year over the next years.
• Earnings per share grew 17.9% a year over the last 3 years.
• Net profit grew 21.2% a year over the last 3 years.
• The company keeps 105% of its revenue as net profit.

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Questions

What grade does Goodman Group (GMG.AX) have?

In our weekly check, Goodman Group is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 2, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of GMG.AX stock?

This week's biggest flags for Goodman Group: Margins falling, Margins expected to shrink, Low return on capital. In total 5 of 25 checks show a warning or a red flag.

What does Goodman Group do?

Goodman Group is a Real Estate company (REIT - Diversified) based in Australia, listed on ASX as GMG.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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