NasdaqGM:CLUB

Stock Analysis Report

Town Sports International Holdings

Executive Summary

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States.

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.

Risks

  • Town Sports International Holdings has significant price volatility in the past 3 months.
  • Town Sports International Holdings is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Town Sports International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.1%

NasdaqGM:CLUB

0.4%

US Hospitality

0.8%

US Market


1 Year Return

-84.6%

NasdaqGM:CLUB

-4.1%

US Hospitality

4.8%

US Market

CLUB underperformed the Hospitality industry which returned -4.2% over the past year.

CLUB underperformed the Market in United States of America which returned 4.7% over the past year.


Share holder returns

CLUBIndustryMarket
7 Day-7.1%0.4%0.8%
30 Day-20.5%2.6%4.3%
90 Day-47.9%-1.4%2.8%
1 Year-84.6%-84.6%-1.8%-4.1%7.1%4.8%
3 Year-15.3%-15.3%55.4%45.8%47.6%37.9%
5 Year-67.8%-67.8%41.4%25.5%61.5%43.5%

Price Volatility Vs. Market

How volatile is Town Sports International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Town Sports International Holdings 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

Town Sports International Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Town Sports International Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Town Sports International Holdings is loss making, we can't compare its value to the US Hospitality industry average.

Town Sports International Holdings is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Town Sports International Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Town Sports International Holdings has negative assets, we can't compare the value of its assets to the US Hospitality industry average.


Next Steps

Future Growth

How is Town Sports International Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

-12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Town Sports International Holdings's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

Town Sports International Holdings is not considered high growth as it is expected to be loss making for the next 1-3 years.

Town Sports International Holdings's revenue growth is positive but not above the United States of America market average.

Unable to compare Town Sports International Holdings's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Town Sports International Holdings's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Town Sports International Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Town Sports International Holdings performed over the past 5 years?

31.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Town Sports International Holdings does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Town Sports International Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Town Sports International Holdings's 1-year growth to the US Hospitality industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Town Sports International Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Town Sports International Holdings used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Town Sports International Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Town Sports International Holdings's financial position?


Financial Position Analysis

Town Sports International Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Town Sports International Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Town Sports International Holdings has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Town Sports International Holdings's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Town Sports International Holdings has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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.

Whilst loss making Town Sports International Holdings has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Town Sports International Holdings has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by % per year.


Next Steps

Dividend

What is Town Sports International Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Town Sports International Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Town Sports International Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Town Sports International Holdings has not reported any payouts.

Unable to verify if Town Sports International Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Town Sports International Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Town Sports International Holdings's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Patrick Walsh (43yo)

2.8yrs

Tenure

US$2,164,000

Compensation

Mr. Patrick Dennis Walsh has been Chief Executive Officer at Town Sports International, LLC since September 30, 2016. Mr. Walsh has been the Executive Chairman of Town Sports International Holdings, Inc. s ...


CEO Compensation Analysis

Patrick's remuneration is higher than average for companies of similar size in United States of America.

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


Management Age and Tenure

3.0yrs

Average Tenure

46yo

Average Age

The tenure for the Town Sports International Holdings management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

47yo

Average Age

The tenure for the Town Sports International Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by Town Sports International Holdings individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$897,20702 May 19
Patrick Walsh
EntityIndividual
Role
Executive Chairman & CEO
Chairman of the Board
Shares247,895
Max PriceUS$3.72
BuyUS$205,30418 Mar 19
Patrick Walsh
EntityIndividual
Role
Executive Chairman & CEO
Chairman of the Board
Shares38,303
Max PriceUS$5.36
SellUS$215,43114 Mar 19
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Shares38,333
Max PriceUS$5.62
SellUS$12,43013 Mar 19
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Shares2,319
Max PriceUS$5.36
SellUS$313,52606 Mar 19
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Shares58,168
Max PriceUS$5.39
SellUS$3,91906 Mar 19
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Shares723
Max PriceUS$5.42
SellUS$75,24218 Dec 18
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Shares12,223
Max PriceUS$6.16
SellUS$10,99618 Dec 18
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Shares1,769
Max PriceUS$6.22
BuyUS$37,85918 Dec 18
Patrick Walsh
EntityIndividual
Role
Executive Chairman & CEO
Chairman of the Board
Shares6,331
Max PriceUS$5.98
SellUS$6,16610 Dec 18
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Shares903
Max PriceUS$6.83
SellUS$23,60510 Dec 18
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Shares3,480
Max PriceUS$6.78
BuyUS$37,84918 Sep 18
Patrick Walsh
EntityIndividual
Role
Executive Chairman & CEO
Chairman of the Board
Shares4,301
Max PriceUS$8.80
SellUS$147,22416 Aug 18
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Shares15,728
Max PriceUS$9.36
SellUS$360,79306 Aug 18
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Shares35,584
Max PriceUS$10.14

Ownership Breakdown


Management Team

  • Stuart Steinberg (62yo)

    General Counsel

    • Tenure: 2.2yrs
    • Compensation: $560.00k
  • Patrick Walsh (43yo)

    Executive Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: $2.16m
  • Carolyn Spatafora (53yo)

    Chief Financial Officer

    • Tenure: 5.2yrs
    • Compensation: $723.81k
  • Nitin Ajmera (46yo)

    Chief Accounting Officer

    • Tenure: 0.3yrs
    • Compensation: $479.81k
  • Long Dang

    Chief Information Officer

    • Tenure: 3.3yrs
  • Michelle Ryan (46yo)

    Chief Marketing Officer

    • Tenure: 3.8yrs

Board Members

  • Thomas Galligan (74yo)

    Lead Independent Director

    • Tenure: 4.4yrs
    • Compensation: $155.00k
  • Marty Annese (60yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: $140.00k
  • Patrick Walsh (43yo)

    Executive Chairman & CEO

    • Tenure: 4.1yrs
    • Compensation: $2.16m
  • Louis Wells (49yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: $153.50k
  • Marcus Dunlop (32yo)

    Director

    • Tenure: 2.0yrs
  • Mandy Lam (45yo)

    Director

    • Tenure: 2.0yrs

Company Information

Town Sports International Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Town Sports International Holdings, Inc.
  • Ticker: CLUB
  • Exchange: NasdaqGM
  • Founded: 1973
  • Industry: leisure facilities
  • Sector: consumer services
  • Market Cap: US$55.843m
  • Shares outstanding: 26.59m
  • Website: Click here

Number of Employees


Location

  • Town Sports International Holdings, Inc.
  • 1001 US North Highway 1
  • Suite 201
  • Jupiter
  • Florida
  • 33477
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLUBNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDJun 2006
T3DDB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2006

Biography

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company’s clubs offer special p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/14 23:59
End of Day Share Price2019/07/12 00:00
Earnings2019/03/31
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.