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The Gym (GB:GYM)
:GYM

The Gym (GYM) AI Stock Analysis

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The Gym

(LSE:GYM)

67Neutral
GB:GYM's overall score reflects strong financial recovery and positive corporate actions. However, high leverage and valuation concerns present risks. Technical indicators are favorable but suggest caution due to potential overbought conditions. The stock's outlook is moderately positive, hinging on effective debt management and sustained operational growth.
Positive Factors
Earnings
EPS is projected to increase significantly.
Expansion and Growth
12 new sites opened with 14-16 targeted for future expansion, indicating growth and expansion efforts.
Financial Performance
New estimates reflect new EBITDA guidance at the top of the consensus range.
Negative Factors
Debt
Zero tax charge is expected due to previous losses.
Interest Costs
Interest costs are slightly higher than previously expected.
Valuation
The DCF-based price target remains unchanged at 180p.

The Gym (GYM) vs. S&P 500 (SPY)

The Gym Business Overview & Revenue Model

Company DescriptionThe Gym Group plc operates a chain of health and fitness facilities in the United Kingdom. As of December 31, 2021, it operated 202 gym sites under The Gym Group brand. The company was founded in 2007 and is based in Croydon, the United Kingdom.
How the Company Makes MoneyThe Gym primarily generates revenue through membership fees, which are offered at competitive prices to attract a broad customer base. The company's memberships typically include access to gym facilities, group exercise classes, and sometimes additional perks like sauna access or discounted personal training sessions. The Gym also earns money from ancillary services such as personal training packages, merchandise sales, and vending machine sales within its facilities. Strategic partnerships with fitness equipment manufacturers or health and wellness brands can also contribute to The Gym's revenue streams, either through direct sales or sponsorship agreements.

The Gym Financial Statement Overview

Summary
The Gym has shown impressive financial recovery with strong revenue and profitability growth. Cash flow generation is solid, but high leverage and debt levels pose potential risks. The overall financial health is positive, but careful debt management is essential.
Income Statement
75
Positive
The Gym has demonstrated a strong recovery with a significant increase in revenue from 2023 to 2024, growing by 10.98%. Gross profit margin remains robust, and the company has improved its net income position from a loss to a profit. EBIT and EBITDA margins are healthy, indicating operational efficiency. However, historical volatility in net income highlights some underlying risks.
Balance Sheet
65
Positive
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses potential risks. The equity ratio is moderate, reflecting an average reliance on equity financing. Return on equity has improved as the company returned to profitability, but the high level of total debt warrants caution.
Cash Flow
70
Positive
The Gym's cash flow is strong with substantial operating cash flow growth and positive free cash flow. The free cash flow to net income ratio is favorable, highlighting effective cash conversion. However, fluctuations in capital expenditures and high debt levels may impact future cash flow stability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
226.30M204.00M172.90M106.00M80.47M
Gross Profit
223.40M201.20M111.40M51.60M29.42M
EBIT
22.90M13.30M9.20M-27.10M-32.54M
EBITDA
83.40M70.80M56.20M25.10M16.29M
Net Income Common Stockholders
4.40M-8.40M-19.30M-35.40M-36.37M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.00M1.50M5.40M7.30M3.74M
Total Assets
585.60M571.50M595.60M564.70M532.49M
Total Debt
401.80M398.10M420.40M380.60M355.50M
Net Debt
398.80M396.60M415.00M373.30M351.76M
Total Liabilities
454.00M443.50M461.60M412.60M378.04M
Stockholders Equity
131.60M128.00M134.00M152.10M154.44M
Cash FlowFree Cash Flow
55.10M55.80M19.40M11.40M-15.79M
Operating Cash Flow
95.10M79.50M63.10M37.10M13.46M
Investing Cash Flow
-39.50M-23.40M-48.70M-25.70M-30.21M
Financing Cash Flow
-54.10M-60.00M-16.30M-7.80M17.89M

The Gym Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price142.60
Price Trends
50DMA
136.30
Positive
100DMA
138.95
Positive
200DMA
146.01
Negative
Market Momentum
MACD
3.27
Positive
RSI
49.88
Neutral
STOCH
11.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GYM, the sentiment is Neutral. The current price of 142.6 is below the 20-day moving average (MA) of 144.54, above the 50-day MA of 136.30, and below the 200-day MA of 146.01, indicating a neutral trend. The MACD of 3.27 indicates Positive momentum. The RSI at 49.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:GYM.

The Gym Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£515.85M17.1619.93%3.95%7.25%-12.60%
72
Outperform
£525.56M44.681.81%2.34%16.73%-55.22%
GBGYM
67
Neutral
£253.67M57.043.39%10.93%
GBJDW
63
Neutral
£789.61M13.6616.38%1.67%3.70%57.10%
GBAO
63
Neutral
£567.22M21.6720.28%-0.39%2.68%
61
Neutral
$6.98B11.362.87%3.90%2.65%-21.76%
60
Neutral
£525.56M30.131.81%3.34%16.73%-55.22%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GYM
The Gym
142.60
16.60
13.17%
GB:BOWL
Hollywood Bowl
305.50
-15.05
-4.70%
GB:JDW
J D Wetherspoon
720.00
-66.46
-8.45%
GB:YNGA
Young & Co'S Brewery
958.00
-63.05
-6.18%
GB:YNGN
Young & Co'S Brewery
670.00
40.87
6.50%
GB:AO
AO World
99.70
-8.90
-8.20%

The Gym Corporate Events

Executive/Board ChangesShareholder Meetings
The Gym Group Successfully Passes All AGM Resolutions Amid Shareholder Engagement
Neutral
May 8, 2025

The Gym Group plc announced that all resolutions at its recent Annual General Meeting were passed, including the re-election of several directors and the approval of the Directors’ Remuneration Report. Notably, the re-election of John Treharne as a director received over 20% opposition, prompting the company to engage with shareholders for further discussions. This outcome reflects the company’s ongoing commitment to governance and shareholder engagement, potentially impacting its strategic direction and stakeholder relations.

Spark’s Take on GB:GYM Stock

According to Spark, TipRanks’ AI Analyst, GB:GYM is a Neutral.

GB:GYM’s overall score reflects strong financial recovery and positive corporate actions. However, high leverage and valuation concerns present risks. Technical indicators are favorable but suggest caution due to potential overbought conditions. The stock’s outlook is moderately positive, hinging on effective debt management and sustained operational growth.

To see Spark’s full report on GB:GYM stock, click here.

Regulatory Filings and Compliance
The Gym Group Announces Total Voting Rights Update
Neutral
May 1, 2025

The Gym Group PLC announced that as of April 30, 2025, its issued share capital consists of 179,322,111 ordinary shares, each with one vote, and no shares held in treasury. This information is crucial for shareholders to determine their voting rights and obligations under the UKLA’s Disclosure Guidance and Transparency Rules.

Spark’s Take on GB:GYM Stock

According to Spark, TipRanks’ AI Analyst, GB:GYM is a Neutral.

GB:GYM’s overall score reflects strong financial recovery and positive corporate actions. However, high leverage and valuation concerns present risks. Technical indicators are favorable but suggest caution due to potential overbought conditions. The stock’s outlook is moderately positive, hinging on effective debt management and sustained operational growth.

To see Spark’s full report on GB:GYM stock, click here.

Other
The Gym Group CEO Acquires Significant Shareholding
Positive
Apr 30, 2025

The Gym Group plc announced a transaction involving its CEO, Will Orr, who acquired 14,385 ordinary shares at a price of £1.400599 per share, totaling £20,147.62. This acquisition, conducted off-exchange on April 29, 2025, reflects a significant investment by the CEO, potentially signaling confidence in the company’s future performance and stability.

Spark’s Take on GB:GYM Stock

According to Spark, TipRanks’ AI Analyst, GB:GYM is a Neutral.

The Gym Group displays strong financial recovery and positive corporate actions, suggesting good future potential. However, the high valuation and leverage pose risks. Technical indicators imply positive momentum but indicate possible overbought conditions, necessitating cautious optimism.

To see Spark’s full report on GB:GYM stock, click here.

Business Operations and Strategy
The Gym Group Relocates Headquarters to London
Neutral
Apr 28, 2025

The Gym Group has announced a change in its registered and head office addresses, moving from Croydon to a new location in London, effective April 28, 2025. This relocation may reflect strategic positioning within the industry, potentially enhancing operational efficiencies and aligning with business growth objectives.

Spark’s Take on GB:GYM Stock

According to Spark, TipRanks’ AI Analyst, GB:GYM is a Neutral.

The Gym Group displays strong financial recovery and positive corporate actions, suggesting good future potential. However, the high valuation and leverage pose risks. Technical indicators imply positive momentum but indicate possible overbought conditions, necessitating cautious optimism.

To see Spark’s full report on GB:GYM stock, click here.

Other
The Gym Group CEO Acquires Significant Shareholding
Positive
Apr 22, 2025

The Gym Group PLC announced a transaction involving its CEO, Will Orr, who acquired 22,000 ordinary shares at a price of £1.368 per share, totaling £30,096.00. This acquisition, conducted off-exchange on April 16, 2025, reflects a significant investment by the CEO, potentially signaling confidence in the company’s future performance and aligning executive interests with those of shareholders.

Spark’s Take on GB:GYM Stock

According to Spark, TipRanks’ AI Analyst, GB:GYM is a Neutral.

The Gym Group shows strong financial recovery and positive corporate actions supporting growth. However, high leverage and valuation concerns pose risks. Technical indicators suggest a positive trend but caution is warranted due to potential overbought conditions.

To see Spark’s full report on GB:GYM stock, click here.

Shareholder MeetingsFinancial Disclosures
The Gym Group Releases 2024 Annual Report and AGM Notice
Neutral
Apr 8, 2025

The Gym Group has announced the release of its Annual Report and Accounts for the year ended 31 December 2024, along with the Notice of its Annual General Meeting (AGM) scheduled for 8 May 2025. These documents have been made available to shareholders and submitted to the National Storage Mechanism for public inspection. This announcement is part of the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its market positioning by reinforcing trust and communication with stakeholders.

Spark’s Take on GB:GYM Stock

According to Spark, TipRanks’ AI Analyst, GB:GYM is a Neutral.

The Gym demonstrates strong financial recovery and strategic expansion, contributing positively to its outlook. However, high leverage and technical pressure on the stock price pose risks. The high P/E ratio suggests potential overvaluation, but recent positive corporate events reflect confidence in long-term growth.

To see Spark’s full report on GB:GYM stock, click here.

Regulatory Filings and Compliance
The Gym Group PLC Updates Share Capital and Voting Rights
Neutral
Apr 1, 2025

The Gym Group PLC announced that as of March 31, 2025, its issued share capital consists of 179,307,108 ordinary shares, each carrying one vote. This update is significant for shareholders as it determines the denominator for calculating their interests under the UKLA’s Disclosure Guidance and Transparency Rules.

Executive/Board Changes
The Gym Group Appoints Tamsin Todd as Non-Executive Director
Positive
Mar 28, 2025

The Gym Group has announced the appointment of Tamsin Todd as a Non-Executive Director, effective from May 1, 2025. Tamsin brings a wealth of experience in business strategy, product management, and technology, having held significant roles at companies like Auction Technology Group, Findmypast, and TUI Group. Her expertise is expected to contribute significantly to The Gym Group’s board, particularly in supporting innovation and growth, which will benefit both customers and shareholders.

Financial DisclosuresRegulatory Filings and Compliance
The Gym Group Releases 2024 Annual Report
Neutral
Mar 14, 2025

The Gym Group PLC has published its 2024 Annual Report and Accounts following the announcement of its full-year results for 2024. This publication is in compliance with relevant regulatory requirements and is available on the company’s website and the National Storage Mechanism, ensuring transparency and accessibility for stakeholders.

Executive/Board ChangesStock BuybackBusiness Operations and Strategy
The Gym Group Announces Executive Share Awards and Strategic Share Purchases
Positive
Mar 13, 2025

The Gym Group plc has announced the grant of share awards under its Incentive Plan to its Executive Directors, involving over 1 million ordinary shares. This move aligns with the company’s remuneration policy and aims to motivate executives by tying their rewards to performance targets. Additionally, the company plans to purchase shares worth up to £2 million to satisfy future share option exercises, indicating a strategic effort to align management interests with shareholder value.

Financial Disclosures
The Gym Group to Present 2024 Full Year Results
Neutral
Mar 12, 2025

The Gym Group announced that CEO Will Orr and CFO Luke Tait will present the company’s Full Year Results for 2024 via a live session on Investor Meet Company. This presentation, scheduled for March 20, 2025, is accessible to all current and potential shareholders, allowing them to submit questions beforehand or during the event, highlighting the company’s commitment to transparency and stakeholder engagement.

Business Operations and StrategyFinancial Disclosures
The Gym Group’s 2024 Success: Strong Growth and Strategic Expansion
Positive
Mar 12, 2025

The Gym Group reported strong financial results for 2024, with an 11% increase in revenue and significant improvements in profitability metrics. The company’s ‘Next Chapter’ growth plan is driving operational success, with 12 new sites opened and high member satisfaction rates. The plan aims to strengthen existing operations and expand with 50 new sites over three years, funded by free cash flow. This strategic focus is expected to enhance the company’s market position and deliver sustained growth, benefiting stakeholders through improved returns and increased social value.

Regulatory Filings and Compliance
The Gym Group Announces Total Voting Rights Update
Neutral
Mar 3, 2025

The Gym Group PLC announced that as of February 28, 2025, its issued share capital consists of 179,297,507 ordinary shares, each carrying one vote. This information is crucial for shareholders to determine their voting rights and obligations under the UK’s Disclosure Guidance and Transparency Rules.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.