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

Good 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

-9.5%

GNC

1.5%

US Specialty Retail

0.4%

US Market


1 Year Return

-52.4%

GNC

8.0%

US Specialty Retail

6.9%

US Market

Return vs Industry: GNC underperformed the US Specialty Retail industry which returned 8% over the past year.

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


Shareholder returns

GNCIndustryMarket
7 Day-9.5%1.5%0.4%
30 Day-18.0%3.2%-1.2%
90 Day7.5%4.4%-0.4%
1 Year-52.4%-52.4%9.8%8.0%9.3%6.9%
3 Year-90.2%-90.4%42.6%35.3%45.8%36.4%
5 Year-94.6%-94.9%57.5%43.6%62.9%45.1%

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

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GNC ($2.01) is trading below our estimate of fair value ($2.24)

Significantly Undervalued: GNC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GNC is good value based on its PE Ratio (4.1x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: GNC is good value based on its PE Ratio (4.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: GNC is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

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


Next Steps

Future Growth

How is GNC Holdings forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNC's forecast earnings growth (63.5% per year) is above the savings rate (2.7%).

Earnings vs Market: GNC's earnings (63.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: GNC's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: GNC's revenue is forecast to decline over the next 3 years (-2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if GNC's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: GNC's earnings have declined by -43.9% per year over the past 5 years.

Accelerating Growth: GNC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GNC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (8.3%).


Return on Equity

High ROE: Whilst GNC's Return on Equity (135.96%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: GNC has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is GNC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GNC's short term assets ($628.1M) exceeds its short term liabilities ($363.1M)

Long Term Liabilities: GNC's short term assets (628.1M) do not cover its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: GNC's debt to equity ratio (2299.9%) is considered high

Reducing Debt: GNC's debt to equity ratio has increased from 180.8% to 2299.9% over the past 5 years.

Debt Coverage: GNC's debt is not well covered by operating cash flow (13%).

Interest Coverage: GNC's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: GNC's 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 vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate GNC'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 GNC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GNC'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 GNC Holdings's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Ken Martindale (59yo)

2.1yrs

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

Compensation vs. Market: Ken has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

4.8yrs

Average Tenure

57yo

Average Age

Experienced Management: GNC's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

62yo

Average Age

Experienced Board: GNC's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


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

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
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP of Finance
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: 2.5yrs
  • Ken Martindale (59yo)

    Chairman & CEO

    • Tenure: 2.1yrs
    • Compensation: US$6.59m
  • Guru Ramanathan (56yo)

    Senior VP & Chief Innovation Officer

    • Tenure: 9.8yrs
    • Compensation: US$722.45k
  • Steve Piano (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.8yrs
    • Compensation: US$864.27k
  • Cameron Lawrence (39yo)

    Chief Accounting Officer & Senior VP of Finance

    • Tenure: 0.5yrs
  • Jay Kent (58yo)

    Chief Supply Chain Officer

    • Tenure: 7yrs
  • Ron Hallock

    Senior Vice President

    • Tenure: 9.8yrs
  • Greg Szabo (58yo)

    Senior Vice President of Manufacturing

    • Tenure: 6.3yrs
  • Carl Seletz

    Chief Global Officer

    • Tenure: 5.1yrs
  • Tricia Tolivar (50yo)

    Executive VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$1.91m

Board Members

  • Alan Feldman (68yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$222.50k
  • Bob Moran (68yo)

    Lead Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$285.00k
  • Phillip Mallott (61yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$230.00k
  • Ken Martindale (59yo)

    Chairman & CEO

    • Tenure: 2.1yrs
    • Compensation: US$6.59m
  • Amy Lane (66yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$222.50k
  • Mike Hines (63yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$212.50k
  • Michele Meyer (54yo)

    Independent Director

    • Tenure: 0.5yrs
  • Yong Kai Wong

    Director

    • Tenure: 0.8yrs
  • Hsing Chow (52yo)

    Director

    • Tenure: 0.8yrs

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$170.007m
  • 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 Analysis2019/10/19 00:14
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.