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

3.1%

GYM

-0.03%

GB Hospitality

1.1%

GB Market


1 Year Return

-6.2%

GYM

14.7%

GB Hospitality

2.7%

GB Market

Return vs Industry: GYM underperformed the UK Hospitality industry which returned 14.7% over the past year.

Return vs Market: GYM underperformed the UK Market which returned 2.7% over the past year.


Shareholder returns

GYMIndustryMarket
7 Day3.1%-0.03%1.1%
30 Day5.2%0.7%-1.7%
90 Day4.1%2.8%-2.7%
1 Year-5.6%-6.2%18.9%14.7%7.8%2.7%
3 Year28.9%26.9%29.3%15.7%19.3%4.7%
5 Yearn/a68.6%41.9%38.0%8.1%

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?

49.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GYM (£2.65) is trading below our estimate of fair value (£5.26)

Significantly Undervalued: 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 (40.1x) compared to the Hospitality industry average (24.1x).

PE vs Market: GYM is poor value based on its PE Ratio (40.1x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: GYM is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: GYM is overvalued based on its PB Ratio (2.5x) compared to the GB Hospitality industry average (1.3x).


Next Steps

Future Growth

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

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GYM's forecast earnings growth (29.7% per year) is above the savings rate (1.2%).

Earnings vs Market: GYM's earnings (29.7% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: GYM's revenue (11.9% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: GYM's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

67.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GYM's earnings have grown significantly by 67.9% per year over the past 5 years.

Accelerating Growth: GYM's earnings growth over the past year (87.3%) exceeds its 5-year average (67.9% per year).

Earnings vs Industry: GYM earnings growth over the past year (87.3%) exceeded the Hospitality industry 5.6%.


Return on Equity

High ROE: GYM's Return on Equity (6.3%) is considered low.


Return on Assets

ROA vs Industry: GYM's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: GYM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gym Group's financial position?


Financial Position Analysis

Short Term Liabilities: GYM's short term assets (£14.4M) do not cover its short term liabilities (£44.2M)

Long Term Liabilities: GYM's short term assets (14.4M) do not cover its long term liabilities (282.4M)


Debt to Equity History and Analysis

Debt Level: GYM's debt to equity ratio (34.8%) is considered satisfactory

Reducing Debt: GYM's debt to equity ratio has reduced from 598% to 34.8% over the past 5 years.

Debt Coverage: GYM's debt is well covered by operating cash flow (85%).

Interest Coverage: GYM's interest payments on its debt are well covered by EBIT (7.1x 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 0.3x debt).


Next Steps

Dividend

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

0.49%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GYM's dividend (0.49%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: GYM's dividend (0.49%) is low compared to the top 25% of dividend payers in the UK market (5.44%).

Stable Dividend: GYM is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: GYM is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


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

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

1.0yrs

Average management tenure


CEO

Richard Darwin (51yo)

1.1yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

1.0yrs

Average Tenure

51yo

Average Age

Experienced Management: GYM's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: GYM's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£24,02727 Mar 19
Richard Darwin
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares11,000
Max PriceUK£2.18
BuyUK£52,61127 Mar 19
Penelope Hughes
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairwoman
Shares23,911
Max PriceUK£2.20

Ownership Breakdown


Management Team

  • John Treharne (65yo)

    Founder & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£478.27k
  • Nick Henwood

    Chief Operating Officer

    • Tenure: 3.2yrs
  • Richard Darwin (51yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£338.32k
  • Jasper McIntosh (46yo)

    Chief Information Officer

    • Tenure: 0.6yrs
  • Barney Harrison

    Chief Commercial Officer

    • Tenure: 0.3yrs
  • Mark George

    CFO, Company Secretary & Director

    • Tenure: 1yrs
    • Compensation: UK£233.25k
  • Ann-marie Murphy

    Director of People & Development

    • Tenure: 0.6yrs
  • David Melhuish

    Head of Property Development

    • Tenure: 0yrs

Board Members

  • John Treharne (65yo)

    Founder & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£478.27k
  • Penny Hughes (60yo)

    Independent Non-Executive Chairwoman

    • Tenure: 3.9yrs
    • Compensation: UK£130.00k
  • David Kelly (56yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£50.00k
  • Richard Darwin (51yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£338.32k
  • Paul J. Gilbert (57yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£52.51k
  • Emma Woods

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£50.00k
  • Mark George

    CFO, Company Secretary & Director

    • Tenure: 1yrs
    • 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£365.411m
  • 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 Analysis2019/10/14 21:30
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.