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.


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

10.2%

CLUB

0.3%

US Hospitality

0.4%

US Market


1 Year Return

-78.1%

CLUB

5.3%

US Hospitality

6.9%

US Market

Return vs Industry: CLUB underperformed the US Hospitality industry which returned 5.3% over the past year.

Return vs Market: CLUB underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

CLUBIndustryMarket
7 Day10.2%0.3%0.4%
30 Day25.0%-3.2%-1.1%
90 Day2.6%-3.6%-0.5%
1 Year-78.1%-78.1%7.9%5.3%9.3%6.9%
3 Year-22.0%-22.0%42.7%33.4%45.8%36.4%
5 Year-67.9%-67.9%41.0%25.4%62.9%45.1%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CLUB ($1.95) is trading below our estimate of fair value ($5.45)

Significantly Undervalued: CLUB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLUB is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: CLUB is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CLUB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CLUB has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLUB is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CLUB is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CLUB is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CLUB's revenue (1.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CLUB's revenue (1.4% 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 CLUB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

33.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CLUB is unprofitable, but has reduced losses over the past 5 years at a rate of 33.3% per year.

Accelerating Growth: Unable to compare CLUB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CLUB is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-13.9%).


Return on Equity

High ROE: CLUB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: CLUB is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CLUB is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Town Sports International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CLUB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CLUB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CLUB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CLUB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: CLUB 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.

Stable Cash Runway: Whilst unprofitable CLUB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CLUB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 78.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CLUB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Stable Dividend: Insufficient data to determine if CLUB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CLUB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CLUB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CLUB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


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?

3.3yrs

Average management tenure


CEO

Patrick Walsh (43yo)

3.1yrs

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

Compensation vs. Market: Patrick's total compensation ($USD2.16M) is above average for companies of similar size in the US market ($USD489.74K).

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


Management Age and Tenure

3.3yrs

Average Tenure

46yo

Average Age

Experienced Management: CLUB's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

47yo

Average Age

Experienced Board: CLUB's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: CLUB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$32,55018 Sep 19
Patrick Walsh
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares16,607
Max PriceUS$1.96
BuyUS$664,63029 Aug 19
Patrick Walsh
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares395,126
Max PriceUS$1.87
BuyUS$897,20702 May 19
Patrick Walsh
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares247,895
Max PriceUS$3.72
BuyUS$205,30418 Mar 19
Patrick Walsh
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares38,303
Max PriceUS$5.36
SellUS$215,43114 Mar 19
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares38,333
Max PriceUS$5.62
SellUS$12,43013 Mar 19
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares2,319
Max PriceUS$5.36
SellUS$313,52606 Mar 19
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares58,168
Max PriceUS$5.39
SellUS$3,91906 Mar 19
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares723
Max PriceUS$5.42
SellUS$75,24218 Dec 18
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares12,223
Max PriceUS$6.16
SellUS$10,99618 Dec 18
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares1,769
Max PriceUS$6.22
BuyUS$37,85918 Dec 18
Patrick Walsh
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares6,331
Max PriceUS$5.98
SellUS$6,16610 Dec 18
Nitin Ajmera
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares903
Max PriceUS$6.83
SellUS$23,60510 Dec 18
Carolyn Spatafora
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,480
Max PriceUS$6.78

Ownership Breakdown


Management Team

  • Stuart Steinberg (62yo)

    General Counsel

    • Tenure: 2.4yrs
    • Compensation: US$560.00k
  • Patrick Walsh (43yo)

    Executive Chairman & CEO

    • Tenure: 3.1yrs
    • Compensation: US$2.16m
  • Carolyn Spatafora (53yo)

    Chief Financial Officer

    • Tenure: 5.4yrs
    • Compensation: US$723.81k
  • Nitin Ajmera (46yo)

    Chief Accounting Officer

    • Tenure: 0.6yrs
    • Compensation: US$479.81k
  • Long Dang

    Chief Information Officer

    • Tenure: 3.5yrs
  • Michelle Ryan (46yo)

    Chief Marketing Officer

    • Tenure: 4yrs

Board Members

  • Thomas Galligan (74yo)

    Lead Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$155.00k
  • Marty Annese (60yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$140.00k
  • Patrick Walsh (43yo)

    Executive Chairman & CEO

    • Tenure: 3.1yrs
    • Compensation: US$2.16m
  • Louis Wells (49yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$153.50k
  • Marcus Dunlop (32yo)

    Independent Director

    • Tenure: 2.3yrs
  • Mandy Lam (45yo)

    Independent Director

    • Tenure: 2.3yrs

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$51.852m
  • Shares outstanding: 26.59m
  • Website: https://www.townsportsinternational.com

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 Analysis2019/10/19 23:53
End of Day Share Price2019/10/18 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.