LSE:GYM

Stock Analysis Report

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Executive Summary

The Gym Group plc operates health and fitness facilities in the United Kingdom. More Details


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

GYM

-2.5%

GB Hospitality

-1.9%

GB Market


1 Year Return

-47.0%

GYM

-33.6%

GB Hospitality

-14.5%

GB Market

Return vs Industry: GYM underperformed the UK Hospitality industry which returned -34% over the past year.

Return vs Market: GYM underperformed the UK Market which returned -14.2% over the past year.


Shareholder returns

GYMIndustryMarket
7 Day-4.5%-2.5%-1.9%
30 Day3.8%1.4%-1.7%
90 Day-5.5%7.8%-4.4%
1 Year-47.0%-47.0%-31.8%-33.6%-11.3%-14.5%
3 Year-31.5%-32.2%-20.6%-27.9%-9.0%-20.3%
5 Yearn/a-0.2%-17.7%15.3%-10.6%

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

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 (£1.41) is trading below our estimate of fair value (£4.49)

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 GB 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 (1.4x) compared to the GB Hospitality industry average (1.1x).


Next Steps

Future Growth

How is Gym Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

107.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GYM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: GYM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GYM's is expected to become profitable in the next 3 years.

Revenue vs Market: GYM's revenue (24.9% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: GYM's revenue (24.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GYM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gym Group performed over the past 5 years?

12.2%

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, but has reduced losses over the past 5 years at a rate of 12.2% 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 (-12.3%).


Return on Equity

High ROE: GYM has a negative Return on Equity (-13.91%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gym Group's financial position?


Financial Position Analysis

Short Term Liabilities: GYM's short term assets (£12.1M) do not cover its short term liabilities (£42.6M).

Long Term Liabilities: GYM's short term assets (£12.1M) do not cover its long term liabilities (£313.9M).


Debt to Equity History and Analysis

Debt Level: GYM's debt to equity ratio (21.2%) is considered satisfactory.

Reducing Debt: GYM's debt to equity ratio has reduced from 227.9% to 21.2% over the past 5 years.


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: Insufficient data to determine if GYM has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GYM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.77%

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?

1.6yrs

Average management tenure


CEO

Richard Darwin (52 yo)

2.08yrs

Tenure

UK£536,613

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD696.85K) is about average for companies of similar size in the UK market ($USD909.22K).

Compensation vs Earnings: Richard's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Darwin
CEO & Executive Director2.08yrsUK£536.61k0.61%
£ 1.4m
John Treharne
Founder & Executive Directorno dataUK£345.87k1.87%
£ 4.4m
Mark George
CFO & Director2yrsUK£326.67k0.0084%
£ 19.6k
Jasper McIntosh
Chief Information Officer1.58yrsno datano data
Ann-marie Murphy
Director of People & Development1.58yrsno datano data
Barney Harrison
Chief Commercial Officer1.25yrsno datano data
Katy Tucker
Company Secretary0.75yrno datano data

1.6yrs

Average Tenure

52yo

Average Age

Experienced Management: GYM's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Darwin
CEO & Executive Director2.08yrsUK£536.61k0.61%
£ 1.4m
John Treharne
Founder & Executive Directorno dataUK£345.87k1.87%
£ 4.4m
Mark George
CFO & Director2yrsUK£326.67k0.0084%
£ 19.6k
Penelope Hughes
Independent Non-Executive Chairwoman4.92yrsUK£138.00k0.038%
£ 88.1k
David Kelly
Non-Executive Director4.25yrsUK£55.00k0.0060%
£ 14.1k
Paul John Gilbert
Senior Independent Non-Executive Directorno dataUK£58.00k0.12%
£ 288.3k
Emma Woods
Non-Executive Director3.92yrsUK£55.00k0.0084%
£ 19.6k

4.3yrs

Average Tenure

58yo

Average Age

Experienced Board: GYM's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GYM insiders have sold more shares than they have bought 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 20.2%.


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£233.725m
  • Shares outstanding: 165.76m
  • Website: https://www.tggplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GYMLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2015
GYMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2015
4GYBST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 2015
GYYM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2015

Biography

The Gym Group plc operates health and fitness facilities in the United Kingdom. It operates 175 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 Analysis2020/10/19 21:02
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.