LSE:GYM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


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


Market Performance


7 Day Return

2.1%

LSE:GYM

1.1%

GB Hospitality

-1.1%

GB Market


1 Year Return

-20.7%

LSE:GYM

-2.1%

GB Hospitality

-5.7%

GB Market

GYM underperformed the Hospitality industry which returned -2.4% over the past year.

GYM underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.3% over the past year.


Share holder returns

GYMIndustryMarket
7 Day2.1%1.1%-1.1%
30 Day-8.2%0.6%-4.4%
90 Day1.9%4.4%-2.7%
1 Year-20.3%-20.7%1.4%-2.1%-1.3%-5.7%
3 Year22.0%20.2%18.8%7.1%17.6%3.9%
5 Yearn/a66.1%41.4%26.8%0.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Gym Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Gym Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Gym Group is overvalued based on earnings compared to the GB Hospitality industry average.

Gym Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Gym Group is poor value based on expected growth next year.


Price Based on Value of Assets

Gym Group is overvalued based on assets compared to the GB Hospitality industry average.


Next Steps

Future Growth

How is Gym Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Gym Group's revenue is expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).

Gym Group's earnings are expected to grow significantly at over 20% yearly.

Gym Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Gym Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Gym Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Gym Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Gym Group performed over the past 5 years?

66.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Gym Group has delivered over 20% year on year earnings growth in the past 5 years.

Gym Group's 1-year earnings growth is less than its 5-year average (0.5% vs 66.3%)

Gym Group's earnings growth has not exceeded the GB Hospitality industry average in the past year (0.5% vs 4.7%).


Return on Equity

Gym Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Gym Group used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Gym Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Gym Group's financial position?


Financial Position Analysis

Gym Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Gym Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Gym Group's level of debt (32.1%) compared to net worth is satisfactory (less than 40%).

Gym Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (76.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

0.85%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Gym Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Gym Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.7%).

Gym Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.

Gym Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Gym Group's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.


Future Payout to Shareholders

No need to calculate the sustainability of Gym Group's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.


Next Steps

Management

What is the CEO of Gym Group's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Richard Darwin (51yo)

0.9yrs

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

Richard's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Richard's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.8yrs

Average Tenure

51yo

Average Age

The average tenure for the Gym Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

57yo

Average Age

The tenure for the Gym Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£52,61127 Mar 19
Penelope Hughes
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairwoman
Shares23,911
Max PriceUK£2.20
BuyUK£24,02727 Mar 19
Richard Darwin
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares11,000
Max PriceUK£2.18
SellUK£620,00028 Sep 18
Paul J. Gilbert
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares200,000
Max PriceUK£3.10

Ownership Breakdown


Management Team

  • John Treharne (65yo)

    Founder & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£478.27k
  • Nick Henwood

    Chief Operating Officer

    • Tenure: 3.0yrs
  • Richard Darwin (51yo)

    CEO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£338.32k
  • Jasper McIntosh (46yo)

    Chief Information Officer

    • Tenure: 0.4yrs
  • Barney Harrison

    Chief Commercial Officer

    • Tenure: 0.1yrs
  • Mark George

    CFO, Company Secretary & Director

    • Tenure: 0.8yrs
    • Compensation: UK£233.25k
  • Ann-marie Murphy

    Director of People & Development

    • Tenure: 0.4yrs
  • David Melhuish

    Head of Property Development

    • Tenure: 0.0yrs

Board Members

  • John Treharne (65yo)

    Founder & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£478.27k
  • Penny Hughes (60yo)

    Independent Non-Executive Chairwoman

    • Tenure: 3.8yrs
    • Compensation: UK£130.00k
  • David Kelly (56yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£50.00k
  • Richard Darwin (51yo)

    CEO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£338.32k
  • Paul J. Gilbert (57yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£52.51k
  • Emma Woods

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£50.00k
  • Mark George

    CFO, Company Secretary & Director

    • Tenure: 0.8yrs
    • Compensation: UK£233.25k

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£330.933m
  • Shares outstanding: 137.89m
  • Website: https://www.tggplc.com

Number of Employees


Location

  • The Gym Group plc
  • OneCroydon
  • 5th Floor
  • Croydon
  • 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. As of March 19, 2019, it operated 160 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 Analysis2019/08/20 22:00
End of Day Share Price2019/08/20 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.