NYSE:GNC

Stock Analysis Report

Executive Summary

GNC Holdings, Inc., together with its subsidiaries, operates as a specialty retailer of health, wellness, and performance products.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.9%

NYSE:GNC

3.0%

US Specialty Retail

-1.6%

US Market


1 Year Return

-43.6%

NYSE:GNC

-8.0%

US Specialty Retail

-3.0%

US Market

GNC underperformed the Specialty Retail industry which returned -5.3% over the past year.

GNC underperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

GNCIndustryMarket
7 Day5.9%3.0%-1.6%
30 Day-1.1%-4.6%-5.8%
90 Day16.1%2.0%0.2%
1 Year-43.6%-43.6%-6.4%-8.0%-0.8%-3.0%
3 Year-90.6%-90.8%22.8%16.4%38.0%29.1%
5 Year-94.9%-95.3%44.9%32.0%50.8%34.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GNC Holdings undervalued based on future cash flows and its price relative to the stock market?

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

GNC Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

GNC Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

GNC Holdings is good value based on earnings compared to the US Specialty Retail industry average.

GNC Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

GNC Holdings is good value based on expected growth next year.


Price Based on Value of Assets

GNC Holdings has negative assets, we can't compare the value of its assets to the US Specialty Retail industry average.


Next Steps

Future Growth

How is GNC Holdings expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

63.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GNC Holdings's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

GNC Holdings's earnings are expected to grow significantly at over 20% yearly.

GNC Holdings's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

GNC Holdings's earnings growth is expected to exceed the United States of America market average.

GNC Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has GNC Holdings performed over the past 5 years?

-43.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GNC Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

GNC Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

GNC Holdings has become profitable in the last year making it difficult to compare the US Specialty Retail industry average.


Return on Equity

Whilst GNC Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

GNC Holdings used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

GNC Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is GNC Holdings's financial position?


Financial Position Analysis

GNC Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

GNC Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

GNC Holdings's level of debt (2299.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (180.8% vs 2299.9% today).

Debt is not well covered by operating cash flow (13%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is GNC Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

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

Unable to evaluate GNC 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 GNC Holdings has not reported any payouts.

Unable to verify if GNC 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 GNC 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 GNC Holdings's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Ken Martindale (59yo)

1.9yrs

Tenure

US$6,594,147

Compensation

Mr. Kenneth A. Martindale, also known as Ken, has been Chairman of GNC Holdings Inc. since August 3, 2018. Mr. Martindale has been the Chief Executive Officer of GNC Holdings, Inc. since September 11, 2017 ...


CEO Compensation Analysis

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

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


Management Age and Tenure

4.7yrs

Average Tenure

57yo

Average Age

The tenure for the GNC Holdings management team is about average.


Board Age and Tenure

1.0yrs

Average Tenure

62yo

Average Age

The average tenure for the GNC Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by GNC Holdings individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$7,45031 May 19
Steven Piano
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares5,000
Max PriceUS$1.49
BuyUS$9,40016 May 19
Steven Piano
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares5,000
Max PriceUS$1.88
BuyUS$9,30014 May 19
Cameron Lawrence
EntityIndividual
Shares5,000
Max PriceUS$1.86
BuyUS$4,91515 Nov 18
Susan Canning
EntityIndividual
Shares1,500
Max PriceUS$3.28

Ownership Breakdown


Management Team

  • Kevin Nowe (67yo)

    Senior VP

    • Tenure: 2.3yrs
  • Ken Martindale (59yo)

    Chairman & CEO

    • Tenure: 1.9yrs
    • Compensation: US$6.59m
  • Guru Ramanathan (56yo)

    Senior VP & Chief Innovation Officer

    • Tenure: 9.7yrs
    • Compensation: US$722.45k
  • Steve Piano (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.6yrs
    • Compensation: US$864.27k
  • Jay Kent (58yo)

    Chief Supply Chain Officer

    • Tenure: 6.8yrs
  • Ron Hallock

    Senior Vice President

    • Tenure: 9.6yrs
  • Greg Szabo (58yo)

    Senior Vice President of Manufacturing

    • Tenure: 6.2yrs
  • Carl Seletz

    Chief Global Officer

    • Tenure: 4.9yrs
  • Tricia Tolivar (50yo)

    Executive VP & CFO

    • Tenure: 4.4yrs
    • Compensation: US$1.91m
  • Cameron Lawrence (39yo)

    CAO & Senior VP of Finance

    • Tenure: 0.3yrs

Board Members

  • Alan Feldman (68yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$222.50k
  • Bob Moran (68yo)

    Lead Independent Director

    • Tenure: 1.0yrs
    • Compensation: US$285.00k
  • Phillip Mallott (61yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$230.00k
  • Ken Martindale (59yo)

    Chairman & CEO

    • Tenure: 1.9yrs
    • Compensation: US$6.59m
  • Amy Lane (66yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$222.50k
  • Mike Hines (63yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$212.50k
  • Michele Meyer (54yo)

    Director

    • Tenure: 0.3yrs
  • Yong Kai Wong

    Director

    • Tenure: 0.6yrs
  • Hsing Chow (52yo)

    Director

    • Tenure: 0.6yrs

Company Information

GNC Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GNC Holdings, Inc.
  • Ticker: GNC
  • Exchange: NYSE
  • Founded: 1935
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$152.245m
  • Shares outstanding: 84.58m
  • Website: https://www.gnc.com

Number of Employees


Location

  • GNC Holdings, Inc.
  • 300 Sixth Avenue
  • Pittsburgh
  • Pennsylvania
  • 15222
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNCNYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2011
IGNDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2011
GNC *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNApr 2011
0IT2LSE (London Stock Exchange)YesClass A Common StockGBUSDApr 2011

Biography

GNC Holdings, Inc., together with its subsidiaries, operates as a specialty retailer of health, wellness, and performance products. The company operates through three segments: U.S. and Canada, Internation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 00:14
End of Day Share Price2019/08/23 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.