GYM

Gym GroupLSE:GYM Stock Report

Market Cap

UK£472.6m

7D

-5.5%

1Y

96.2%

Updated

17 Sep, 2021

Data

Company Financials +
GYM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends0/6

GYM Overview

The Gym Group plc operates a chain of health and fitness facilities in the United Kingdom.

Share Price & News

How has Gym Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GYM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GYM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.5%

GYM

1.0%

GB Hospitality

-1.0%

GB Market


1 Year Return

96.2%

GYM

42.8%

GB Hospitality

19.2%

GB Market

Return vs Industry: GYM exceeded the UK Hospitality industry which returned 38.2% over the past year.

Return vs Market: GYM exceeded the UK Market which returned 19.4% over the past year.


Shareholder returns

GYMIndustryMarket
7 Day-5.5%1.0%-1.0%
30 Day-1.1%0.03%-2.2%
90 Day-8.6%-1.3%0.5%
1 Year96.2%96.2%43.0%42.8%24.1%19.2%
3 Year-14.5%-15.0%8.8%1.3%15.3%2.5%
5 Year39.5%37.4%22.2%5.3%35.4%10.7%

Long-Term Price Volatility Vs. Market

How volatile is Gym Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Gym Group Fundamentals Summary

How do Gym Group's earnings and revenue compare to its market cap?
GYM fundamental statistics
Market CapUK£472.64m
Earnings (TTM)-UK£34.17m
Revenue (TTM)UK£72.47m

6.5x

P/S Ratio

-13.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GYM income statement (TTM)
RevenueUK£72.47m
Cost of RevenueUK£1.82m
Gross ProfitUK£70.65m
ExpensesUK£104.82m
Earnings-UK£34.17m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.21
Gross Margin97.49%
Net Profit Margin-47.15%
Debt/Equity Ratio47.9%

How did GYM perform over the long term?

See historical performance and comparison

Valuation

Is Gym Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GYM (£2.67) is trading below our estimate of fair value (£5.96)

Significantly Below Fair Value: GYM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GYM is unprofitable, so we can't compare its PE Ratio to the UK Hospitality industry average.

PE vs Market: GYM is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GYM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GYM is overvalued based on its PB Ratio (3.5x) compared to the GB Hospitality industry average (2.6x).


Future Growth

How is Gym Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

24.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GYM's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if GYM's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GYM's revenue (24.6% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: GYM's revenue (24.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GYM's Return on Equity is forecast to be low in 3 years time (9%).


Past Performance

How has Gym Group performed over the past 5 years?

-64.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GYM is currently unprofitable.

Growing Profit Margin: GYM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GYM is unprofitable, and losses have increased over the past 5 years at a rate of 64.7% per year.

Accelerating Growth: Unable to compare GYM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GYM is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (8.7%).


Return on Equity

High ROE: GYM has a negative Return on Equity (-25.46%), as it is currently unprofitable.


Financial Health

How is Gym Group's financial position?


Financial Position Analysis

Short Term Liabilities: GYM's short term assets (£11.0M) do not cover its short term liabilities (£51.3M).

Long Term Liabilities: GYM's short term assets (£11.0M) do not cover its long term liabilities (£353.4M).


Debt to Equity History and Analysis

Debt Level: GYM's debt to equity ratio (47.9%) is considered high.

Reducing Debt: GYM had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GYM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GYM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 32.2% per year.


Dividend

What is Gym Group current dividend yield, its reliability and sustainability?

0.40%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GYM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GYM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GYM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GYM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GYM is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GYM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Richard Darwin (53 yo)

3yrs

Tenure

UK£335,624

Compensation

Mr. Richard Darwin serves as Chief Executive Officer at The Gym Group plc since September 17, 2018. Mr. Darwin served as Company Secretary of The Gym Group plc and was its Chief Financial Officer from May...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD461.61K) is below average for companies of similar size in the UK market ($USD978.10K).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GYM's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: GYM's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GYM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

The Gym Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Gym Group plc
  • Ticker: GYM
  • Exchange: LSE
  • Founded: 2007
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: UK£472.643m
  • Shares outstanding: 177.35m
  • Website: https://www.tggplc.com

Number of Employees


Location

  • The Gym Group plc
  • OneCroydon
  • 5th Floor
  • Croydon
  • Greater London
  • CR0 0XT
  • United Kingdom

Listings


Biography

The Gym Group plc operates a chain of health and fitness facilities in the United Kingdom. It operates 83 gyms. The company was founded in 2007 and is based in Croydon, the United Kingdom.


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 22:29
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.