Life Time Group Holdings (NYSE:LTH) - Share price, News & Analysis

LTH fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	0/6
Dividends	0/6

LTH Stock Overview

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada.

Rewards

Trading at 67.4% below our estimate of its fair value

Earnings are forecast to grow 66.33% per year

Risk Analysis

Has less than 1 year of cash runway

Life Time Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Life Time Group Holdings
Historical stock prices
Current Share Price	US$14.45
52 Week High	US$23.37
52 Week Low	US$10.53
Beta	0
1 Month Change	-1.10%
3 Month Change	-0.14%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-18.59%

Shareholder Returns

	LTH	US Hospitality	US Market
7D	4.4%	4.6%	6.6%
1Y	n/a	-30.2%	-18.4%

Return vs Industry: Insufficient data to determine how LTH performed against the US Hospitality industry.

Return vs Market: Insufficient data to determine how LTH performed against the US Market.

Price Volatility

Is LTH's price volatile compared to industry and market?
LTH volatility
LTH Average Weekly Movement	8.4%
Hospitality Industry Average Movement	9.2%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: LTH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LTH's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	31,000	Bahram Akradi	https://www.lifetime.life

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces.

Life Time Group Holdings Fundamentals Summary

How do Life Time Group Holdings's earnings and revenue compare to its market cap?
LTH fundamental statistics
Market Cap	US$2.80b
Earnings (TTM)	-US$460.25m
Revenue (TTM)	US$1.46b

1.9x

P/S Ratio

-6.1x

P/E Ratio

Is LTH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LTH income statement (TTM)
Revenue	US$1.46b
Cost of Revenue	US$909.06m
Gross Profit	US$551.95m
Other Expenses	US$1.01b
Earnings	-US$460.25m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-2.38
Gross Margin	37.78%
Net Profit Margin	-31.50%
Debt/Equity Ratio	88.0%

How did LTH perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is LTH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LTH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LTH. This is calculated by dividing LTH's market cap by their current preferred multiple.
What is LTH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.80b

LTH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.5x
Enterprise Value/EBITDA	-30.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does LTH's PS Ratio compare to its peers?

LTH PS Ratio vs Peers

The above table shows the PS ratio for LTH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.8x

Forward PS

Price-To-Sales vs Peers: LTH is expensive based on its Price-To-Sales Ratio (1.9x) compared to the peer average (1.8x).

Price to Earnings Ratio vs Industry

How does LTH's PE Ratio compare vs other companies in the U.S. Hospitality Industry?

Price-To-Sales vs Industry: LTH is expensive based on its Price-To-Sales Ratio (1.9x) compared to the US Hospitality industry average (1.7x)

Price to Sales Ratio vs Fair Ratio

What is LTH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LTH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.9x
Fair PS Ratio	2.6x

Price-To-Sales vs Fair Ratio: LTH is good value based on its Price-To-Sales Ratio (1.9x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).

Share Price vs Fair Value

What is the Fair Price of LTH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LTH ($14.45) is trading below our estimate of fair value ($44.27)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Life Time Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

66.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: LTH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LTH is expected to become profitable in the next 3 years.

Revenue vs Market: LTH's revenue (16.4% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: LTH's revenue (16.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LTH's Return on Equity is forecast to be low in 3 years time (4.8%).

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Past Performance

How has Life Time Group Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-56.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LTH is currently unprofitable.

Growing Profit Margin: LTH is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LTH is unprofitable, and losses have increased over the past 5 years at a rate of 56.8% per year.

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

Earnings vs Industry: LTH is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (119.6%).

Return on Equity

High ROE: LTH has a negative Return on Equity (-22.37%), as it is currently unprofitable.

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Financial Health

How is Life Time Group Holdings's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: LTH's short term assets ($143.1M) do not cover its short term liabilities ($413.8M).

Long Term Liabilities: LTH's short term assets ($143.1M) do not cover its long term liabilities ($3.8B).

Debt to Equity History and Analysis

Debt Level: LTH's net debt to equity ratio (86%) is considered high.

Reducing Debt: Insufficient data to determine if LTH's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

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: LTH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LTH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is Life Time Group Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LTH has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

8.7yrs

Average management tenure

CEO

Bahram Akradi (60 yo)

30.42yrs

Tenure

US$41,930,718

Compensation

Mr. Bahram Akradi has been Chairman of the Board of Northern Oil and Gas, Inc. since February 01, 2018 and has been its Independent Director since July 2017. He founded Life Time Group Holdings, Inc. (form...

CEO Compensation Analysis

Compensation vs Market: Bahram's total compensation ($USD41.93M) is above average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Bahram's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: LTH's management team is seasoned and experienced (8.7 years average tenure).

Board Members

Experienced Board: LTH's board of directors are considered experienced (7 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: LTH only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31