Viva Leisure Ltd. (VVA) AI Stock Analysis

• Market Cap: AU$162.11M
• Dividend Yield: N/A
• Average Volume (3M): 61.83K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.66
• Revenue Growth: 30.36%
• EPS Growth: 47.61%
• Country: AU
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.07
• Shares Outstanding: 98,546,370
• 10 Day Avg. Volume: 67,265
• 30 Day Avg. Volume: 61,832
• PEG Ratio: 0.54
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 3.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: AU$1.50 ▼(-8.54% Downside)

Viva Leisure Ltd.'s stock score is primarily influenced by its strong financial performance, despite high leverage and modest profitability. Technical indicators suggest potential bearish momentum, and the valuation appears high relative to earnings. The absence of dividend yield further impacts the attractiveness of the stock.

Positive Factors

Revenue Growth

Sustained revenue growth indicates a robust market position and effective business strategies, enhancing long-term financial stability.

Operational Efficiency

High gross profit margins reflect strong operational efficiency, which can support sustainable profitability and competitive advantage.

Cash Generation

Robust cash generation from operations ensures liquidity and financial flexibility, supporting ongoing investments and growth initiatives.

Negative Factors

High Leverage

High leverage can increase financial risk and limit strategic options, potentially impacting long-term financial health and stability.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which may hinder the company's ability to reinvest in growth and improve shareholder returns.

Negative Free Cash Flow Growth

Negative free cash flow growth may challenge liquidity management and limit the company's capacity to fund expansion or reduce debt.

Viva Leisure Ltd. Business Overview & Revenue Model

Company Description

Viva Leisure Limited operates health clubs. As of August 18, 2022, the company operated approximately 152 health clubs under the Club Lime and Hiit Republic brand names within the Australian Capital Territory, New South Wales, Victoria, Queensland, and Western Australia; and approximately 200 franchised health clubs under the Plus Fitness brand in Australia, New Zealand, and India. It also provides debit services. The company was founded in 2004 and is based in Mitchell, Australia.

How the Company Makes Money

Viva Leisure generates revenue primarily through membership fees from its fitness clubs, which include both monthly and annual subscription models. The company also earns income from ancillary services such as personal training sessions, group fitness classes, and wellness programs. Additional revenue streams come from retail sales of fitness-related products and partnerships with corporate clients for employee wellness programs. Significant partnerships with health fund providers and community organizations also contribute to its earnings by increasing membership uptake and providing additional services to clients.

Viva Leisure Ltd. Financial Statement Overview

Summary

Viva Leisure Ltd. demonstrates robust revenue growth and operational efficiency, with strong gross profit and EBITDA margins. However, challenges include high leverage and modest profitability. Cash flow generation is solid, but negative free cash flow growth warrants attention.

Income Statement

Viva Leisure Ltd. has shown a strong revenue growth rate of 15.18% in the most recent year, indicating a positive trajectory. The gross profit margin is exceptionally high at 100%, suggesting efficient cost management. However, the net profit margin is relatively low at 2.49%, indicating room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.46, which suggests significant leverage and potential financial risk. However, the equity ratio indicates that 18.11% of the company's assets are financed by equity, which is a moderate level. The return on equity is low, suggesting limited profitability from shareholders' investments.

Cash Flow

Operating cash flow is strong, covering nearly all net income, indicating good cash generation from operations. However, free cash flow growth is negative, which could signal potential challenges in maintaining liquidity. The free cash flow to net income ratio is moderate, suggesting a balanced cash conversion cycle.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	211.30M	210.28M	161.48M	141.04M	90.76M	83.60M
Gross Profit	143.79M	210.28M	48.41M	42.17M	13.02M	18.53M
EBITDA	49.04M	78.71M	59.12M	67.48M	37.73M	35.30M
Net Income	5.23M	5.23M	3.25M	3.40M	-12.14M	-6.38M
Balance Sheet
Total Assets	612.39M	612.39M	542.49M	449.02M	436.14M	398.14M
Cash, Cash Equivalents and Short-Term Investments	12.88M	12.88M	22.27M	6.83M	10.07M	17.29M
Total Debt	383.68M	383.68M	319.34M	266.17M	264.63M	230.17M
Total Liabilities	501.47M	501.47M	433.40M	359.00M	350.33M	311.78M
Stockholders Equity	110.92M	110.92M	109.08M	90.02M	85.81M	86.35M
Cash Flow
Free Cash Flow	45.41M	40.59M	40.57M	33.52M	15.52M	-2.50M
Operating Cash Flow	70.04M	70.04M	59.45M	53.13M	27.95M	25.36M
Investing Cash Flow	-66.39M	-66.19M	-32.89M	-25.15M	-31.84M	-54.80M
Financing Cash Flow	-13.25M	-13.25M	-11.11M	-31.22M	-3.32M	16.63M

Viva Leisure Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VVA, the sentiment is Negative. The current price of 1.64 is below the 20-day moving average (MA) of 1.64, below the 50-day MA of 1.67, and above the 200-day MA of 1.47, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:VVA.

Viva Leisure Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STP	79 Outperform	AU$63.02M	4.98	24.28%	20.00%	2.76%	1.93%
JYC	67 Neutral	AU$157.01M	21.35	21.22%	5.11%	1.82%	-18.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GLB	60 Neutral	AU$104.82M	10.83	12.77%	7.81%	-7.21%	-14.55%
VVA	58 Neutral	AU$162.11M	31.39	4.75%	―	30.36%	47.61%
SHJ	55 Neutral	AU$116.03M	207.58	0.21%	7.30%	4.44%	-90.57%
CEH	51 Neutral	AU$211.77M	-605.56	-0.05%	―	10.76%	95.79%

Viva Leisure Ltd. Corporate Events

Viva Leisure’s 2025 AGM: Key Resolutions and Outcomes

Viva Leisure Limited held its 2025 Annual General Meeting, where several resolutions were voted on by shareholders. Key outcomes included the adoption of the Remuneration Report, re-election of Andrew Burns as a Non-Executive Director, and approval of options issuance to CEO Harry Konstantinou. However, the proposal for a 10% Placement Facility was not carried. These results reflect the company’s ongoing governance and strategic decisions, impacting its operational and market strategies.

Viva Leisure Ltd. Emphasizes Sustainability in 2025 Annual Report

Viva Leisure Ltd.’s 2025 Annual Report highlights the company’s commitment to reducing its environmental footprint by limiting printed copies of the report. This approach reflects the company’s broader sustainability goals and its dedication to operational efficiency, potentially enhancing its reputation among environmentally conscious stakeholders.

Viva Leisure Limited Releases 2025 Corporate Governance Statement

Viva Leisure Limited has released its Corporate Governance Statement for the financial year ending June 30, 2025, outlining its adherence to the ASX Corporate Governance Principles and Recommendations. The statement details the company’s compliance with these guidelines, explaining any deviations and the alternative practices adopted. This transparency in governance is crucial for maintaining investor trust and ensuring the company’s operations align with industry standards, potentially impacting its market positioning and stakeholder relations positively.

Viva Leisure Ltd. Releases 2025 Corporate Governance Statement

Viva Leisure Ltd. has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting its commitment to transparency and accountability. This announcement underscores Viva Leisure’s dedication to maintaining robust governance practices, which is crucial for its stakeholders and enhances its industry position.

Viva Leisure Announces 2025 Annual General Meeting

Viva Leisure Limited has announced its 2025 Annual General Meeting, scheduled for 20 November 2025, at its Beaconsfield, NSW location and online. This meeting will provide shareholders with the opportunity to engage with the company’s strategic direction and operational updates. The announcement underscores Viva Leisure’s commitment to maintaining transparency and communication with its stakeholders, reflecting its position as a leading player in the Australian fitness sector.

Viva Leisure Ltd. Completes On-Market Buy-Back Program

Viva Leisure Ltd. has announced the completion of its on-market buy-back program, repurchasing a total of 3,447,695 ordinary fully paid securities for AUD 4,650,772.75. This move is part of the company’s strategic financial management, potentially enhancing shareholder value and optimizing its capital structure.

Viva Leisure Ltd. Announces Quotation of New Securities on ASX

Viva Leisure Ltd. has announced the quotation of 306,993 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective from October 1, 2025. This move is part of the company’s strategy to enhance its market presence and provide liquidity options for its stakeholders, reflecting its ongoing commitment to growth and shareholder value.

Viva Leisure Ltd. Announces Cessation of Securities

Viva Leisure Ltd. announced the cessation of 306,993 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s operational and financial strategies.

Viva Leisure Announces Director’s Interest Change

Viva Leisure Limited announced a change in the director’s interest, specifically involving Harry Konstantinou. The change involved the vesting and lapsing of options, resulting in an increase in ordinary shares held by the director. This adjustment reflects internal changes in the company’s governance and may impact stakeholders’ perception of the company’s management stability.