LSE:GYM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

GYM

-5.3%

GB Hospitality

-2.4%

GB Market


1 Year Return

-37.8%

GYM

-30.5%

GB Hospitality

-25.9%

GB Market

Return vs Industry: GYM underperformed the UK Hospitality industry which returned -30.5% over the past year.

Return vs Market: GYM underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

GYMIndustryMarket
7 Day3.0%-5.3%-2.4%
30 Day-39.7%-26.5%-18.0%
90 Day-53.0%-37.5%-29.1%
1 Year-37.4%-37.8%-28.6%-30.5%-22.2%-25.9%
3 Year-24.3%-25.5%-21.3%-29.2%-16.0%-26.6%
5 Yearn/a-10.8%-24.7%-4.5%-26.1%

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 (£1.36) is trading below our estimate of fair value (£3.84)

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


Price To Earnings Ratio

PE vs Industry: GYM is poor value based on its PE Ratio (52x) compared to the Hospitality industry average (17.6x).

PE vs Market: GYM is poor value based on its PE Ratio (52x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: GYM is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: GYM is overvalued based on its PB Ratio (1.2x) compared to the GB Hospitality industry average (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?

57.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GYM's forecast earnings growth (57.6% per year) is above the savings rate (0.5%).

Earnings vs Market: GYM's earnings (57.6% per year) are forecast to grow faster than the UK market (15.4% per year).

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

Revenue vs Market: GYM's revenue (8.3% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: GYM's revenue (8.3% per year) is forecast to grow slower 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?

57.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GYM has a large one-off loss of £6.6M impacting its December 31 2019 financial results.

Growing Profit Margin: GYM's current net profit margins (2.3%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: GYM has become profitable over the past 5 years, growing earnings by 57.3% per year.

Accelerating Growth: GYM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GYM had negative earnings growth (-27%) over the past year, making it difficult to compare to the Hospitality industry average (-3.5%).


Return on Equity

High ROE: GYM's Return on Equity (2.4%) is considered low.


Next Steps

Financial Health

How is Gym Group's financial position?


Financial Position Analysis

Short Term Liabilities: GYM's short term assets (£12.0M) do not cover its short term liabilities (£49.6M).

Long Term Liabilities: GYM's short term assets (£12.0M) do not cover its long term liabilities (£313.3M).


Debt to Equity History and Analysis

Debt Level: GYM's debt to equity ratio (32.7%) is considered satisfactory.

Reducing Debt: GYM's debt to equity ratio has reduced from 205.4% to 32.7% over the past 5 years.

Debt Coverage: GYM's debt is well covered by operating cash flow (147.1%).

Interest Coverage: GYM's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: GYM has a high level of physical assets or inventory.

Debt Coverage by Assets: GYM's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

1.48%

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 payouts.

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

1.5yrs

Average management tenure


CEO

Richard Darwin (51yo)

1.58s

Tenure

UK£338,324

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 ($USD414.25K) is below average for companies of similar size in the UK market ($USD746.31K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Darwin
CEO & Executive Director1.58yrsUK£338.32k0.72% £1.3m
John Treharne
Founder & Executive Directorno dataUK£478.27k2.57% £4.8m
Mark George
CFO, Company Secretary & Director1.5yrsUK£233.25kno data
Nick Henwood
Chief Operating Officer3.67yrsno datano data
Jasper McIntosh
Chief Information Officer1.08yrsno datano data
Ann-marie Murphy
Director of People & Development1.08yrsno datano data
Barney Harrison
Chief Commercial Officer0.75yrno datano data
David Melhuish
Head of Property Developmentno datano datano data

1.5yrs

Average Tenure

51yo

Average Age

Experienced Management: GYM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Darwin
CEO & Executive Director1.58yrsUK£338.32k0.72% £1.3m
John Treharne
Founder & Executive Directorno dataUK£478.27k2.57% £4.8m
Mark George
CFO, Company Secretary & Director1.5yrsUK£233.25kno data
Penelope Hughes
Independent Non-Executive Chairwoman4.42yrsUK£130.00k0.036% £67.8k
David Kelly
Independent Non-Executive Director3.75yrsUK£50.00k0.0036% £6.8k
Paul John Gilbert
Senior Independent Non-Executive Directorno dataUK£52.51k0.14% £254.6k
Emma Woods
Independent Non-Executive Director3.42yrsUK£50.00k0.0065% £12.1k

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: GYM's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


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£187.247m
  • Shares outstanding: 138.09m
  • 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 Analysis2020/04/05 23:05
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.