For what its worth: Morningstar had GEM as a best buy for many...

For what its worth: Morningstar had GEM as a best buy for many months with a valuation of $2+ (through 2021 and in April 2022)
Last week they Materially Downgraded their G8 Education Fair Value Estimate to $1.10

We reassess the long-term outlook for G8 given recent challenges, inflationary pressures and the competitive industry landscape. While we raise our revenue growth assumptions to reflect higher inflation and wage pressures, which need to be passed on through higher prices, we believe our prior margin expansion forecast was too optimistic. Our unchanged no-moat rating reflects a lack of cost advantage or brand power...

We now expect EBIT growth of 6.4% a year to AUD 145 million 2026, down from about 14% a year, or AUD 206 million, previously. We temper our EBIT margin expansion expectations meaningfully to 13.4% in 2026 from 12.3% in 2021, versus 19.6% in our prior forecast. This reflects likely wage pressures, additional childcare centre supply and the industry landscape.
The childcare industry is relatively fragmented and competitive. With wages rising relatively quickly and government funding likely to boost demand for childcare workers in an already tight labour market, we no longer believe increased revenue will translate into outsize profit gains.