TGE maintains structural margin resilience with gross margins consistently above 73%, though revenue growth remains volatile, fluctuating between 5.8% and 26.0% due to project-based cycles.
| Sales/Revenue | 868.55M | 50.67M | 80.3M | 18.25M | 868.55M | 793.26M | 655.9M | 611.66M | 542.66M |
| Revenue Growth % | 9.49% | -36.9% | 339.96% | -97.9% | 9.49% | 20.94% | 7.23% | 12.72% | - |
| Cost of Goods Sold | 193.74M | 27.3M | 12.32M | 6.32M | 193.74M | 199.69M | 166.25M | 144.72M | 143.92M |
| COGS % of Revenue | - | 53.89% | 15.34% | 34.61% | 22.31% | 25.17% | 25.35% | 23.66% | 26.52% |
| Gross Profit | 674.8M | 23.37M | 67.98M | 11.94M | 674.8M | 593.57M | 489.65M | 466.94M | 398.74M |
| Gross Margin % | 77.69% | 46.11% | 84.66% | 65.39% | 77.69% | 74.83% | 74.65% | 76.34% | 73.48% |
| Gross Profit Growth % | - | -65.63% | 469.59% | -98.23% | 13.69% | 21.22% | 4.86% | 17.1% | - |
| Operating Expenses | 322.05M | -9.43M | 44.85M | -8.71M | 322.05M | 242.94M | 208.08M | 208.53M | 192.51M |
| OpEx % of Revenue | - | -18.62% | 55.86% | -47.72% | 37.08% | 30.62% | 31.72% | 34.09% | 35.48% |
| Selling, General & Admin | 322.05M | 2.68M | 2.04M | 1.46M | 192.85M | 143.12M | 127.61M | 112.37M | 103.46M |
| SG&A % of Revenue | - | 5.28% | 2.54% | 8.01% | 22.2% | 18.04% | 19.45% | 18.37% | 19.06% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -12.11M | 42.81M | -10.17M | 129.2M | 99.82M | 80.47M | 96.16M | 89.05M |
| Operating Income | 352.76M | 32.8M | 23.13M | 20.64M | 352.76M | 350.63M | 281.57M | 258.42M | 206.23M |
| Operating Margin % | 40.61% | 64.73% | 28.8% | 113.11% | 40.61% | 44.2% | 42.93% | 42.25% | 38% |
| Operating Income Growth % | - | 41.84% | 12.01% | -94.15% | 0.61% | 24.52% | 8.96% | 25.31% | - |
| EBITDA | 488.25M | 44.52M | 25.96M | 21.72M | 488.25M | 468.06M | 380.11M | 352.46M | 295.4M |
| EBITDA Margin % | 56.22% | 87.86% | 32.33% | 119.01% | 56.22% | 59% | 57.95% | 57.62% | 54.43% |
| EBITDA Growth % | 4.31% | 71.51% | 19.5% | -95.55% | 4.31% | 23.14% | 7.85% | 19.32% | - |
| D&A (Non-Cash Add-back) | 135.5M | 11.72M | 2.83M | 1.08M | 135.5M | 117.43M | 98.54M | 94.04M | 89.17M |
| EBIT | 561.1M | 56.98M | 26.2M | 26.31M | 680.55M | 0 | 0 | 0 | 0 |
| Net Interest Income | -39.48M | -10.67M | -7.17M | -2.61M | -161.41M | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 17K | 4K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 161.41M | 10.68M | 7.17M | 2.61M | 161.41M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 129.02M | 13.57M | -4.07M | 3.08M | -174.54M | 172.75M | 150.87M | 9.36M | -13.16M |
| Pretax Income | 481.78M | 46.37M | 19.06M | 23.72M | 178.22M | 523.38M | 432.44M | 267.78M | 193.07M |
| Pretax Margin % | 55.47% | 91.52% | 23.73% | 129.97% | 20.52% | 65.98% | 65.93% | 43.78% | 35.58% |
| Income Tax | 70.59M | 1.64M | 1.81M | 599K | -70.59M | 55.71M | 208.46M | 17.74M | 7.28M |
| Effective Tax Rate % | 14.65% | 3.54% | 9.5% | 2.53% | -39.61% | 10.64% | 48.2% | 6.63% | 3.77% |
| Net Income | 248.81M | 27.75M | 8.16M | 14.97M | 248.81M | 137.13M | -128.73M | 33.79M | 44.31M |
| Net Margin % | 28.65% | 54.77% | 10.17% | 82.05% | 28.65% | 17.29% | -19.63% | 5.52% | 8.17% |
| Net Income Growth % | 81.44% | 239.92% | -45.48% | -93.98% | 81.44% | 206.52% | -480.98% | -23.75% | - |
| Net Income (Continuing) | 248.81M | 44.73M | 17.25M | 23.12M | 248.81M | 137.13M | -128.73M | 33.79M | 44.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 103.85M | 174.05M | 197.38M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.37 | 0.57 | 0.17 | 0.32 | 1.41 | 1.25 | -2.22 | 0.69 | 0.93 |
| EPS Growth % | 33.21% | 235.29% | -46.88% | -77.31% | 12.8% | 156.31% | -421.74% | -25.81% | - |
| EPS (Basic) | - | 0.57 | 0.17 | 0.32 | 1.41 | 0.85 | -2.22 | 0.69 | 0.93 |
| Diluted Shares Outstanding | 181.73M | 48.46M | 46.77M | 46.77M | 176.5M | 162.03M | 58.08M | 48.89M | 47.81M |
| Basic Shares Outstanding | 181.73M | 48.46M | 46.77M | 46.77M | 176.5M | 162.03M | 58.08M | 48.89M | 47.81M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Project-based revenue volatility
Based on the provided quarterly data, TGE exhibits significant top-line volatility, with revenue growth fluctuating between 5.8% and 26.0% across the observed periods, suggesting that the company's reliance on project-based movie production cycles prevents the establishment of a stable, predictable long-term revenue trajectory for investors.
The inconsistent growth profile appears to be a direct consequence of the company's bifurcated business model, where lumpy entertainment releases disrupt the steadier advertising revenue from its publishing arm. This lack of organic growth durability warrants caution, as the firm struggles to smooth out the inherent cyclicality of its content pipeline.
As reported in the historical financial statements, TGE maintains robust gross margins consistently above 73%, which suggests that the company possesses significant pricing power within its niche luxury and fashion editorial segments, effectively insulating its core operations from the broader competitive pressures seen in mass-market media.
The ability to sustain high gross margins despite revenue fluctuations indicates that TGE's editorial authority serves as a meaningful moat against commoditization. However, investors should monitor whether these margins can be maintained if the company is forced to pivot toward higher-volume, lower-margin distribution strategies to offset production lulls.
According to the income statement data, TGE's net income exhibits extreme variance, including a notable -$165.4M loss in 2017Q4, which suggests that reported earnings are heavily influenced by non-operating items or accounting adjustments that may not accurately reflect the underlying cash-generating capacity of the core business.
The disconnect between operating income and net income, particularly in periods of significant volatility, implies that investors should look past headline EPS figures. The absence of stock-based compensation is a positive indicator of shareholder alignment, yet the erratic bottom-line performance necessitates a deeper investigation into non-core asset valuations.
Based on the reported figures, TGE's operating margins occasionally appear to decouple from gross profit trends, a phenomenon that may indicate an over-reliance on non-recurring income sources that could mask a fundamental deterioration in the company's core operational efficiency and long-term sustainability of its current profitability.
Short-sellers would likely focus on the unusual relationship between gross and operating margins as a potential red flag for accounting quality. If these margins are indeed supported by one-time gains rather than operational excellence, the company may face a significant valuation correction once these non-core tailwinds dissipate.
Quick answers to the most common questions about buying TGE stock.
For fiscal year 2024, Generation Essentials Group (TGE) reported total revenue of $50.7M. This represents a 90.7% decline compared to $542.7M in 2015.
Generation Essentials Group (TGE) is profitable, generating $27.8M in net income for the fiscal year ending 2024 with a net profit margin of 54.8%.
Generation Essentials Group (TGE) reported an operating income of $32.8M, resulting in an operating profit margin of 64.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Generation Essentials Group (TGE) generated $23.4M in gross profit for the year, representing a gross profit margin of 46.1%. This demonstrates the company's core pricing power and production efficiency.