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The Gym (GB:GYM)
:GYM
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The Gym (GYM) AI Stock Analysis

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GB:GYM

The Gym

(LSE:GYM)

Rating:61Neutral
Price Target:
155.00p
▲(5.30% Upside)
The Gym's overall stock score is driven by strong financial recovery and positive corporate events, indicating growth potential. However, high valuation and neutral technical indicators present challenges.
Positive Factors
Earnings
The Gym Group has delivered FY24 EBITDA 4% ahead of consensus expectations.
Financial Performance
Revenue increased by 8% due to a 4% increase in average members and a 4% yield growth.
Financial Strategy
Commitment to an opening programme funded from free cash flow should reduce leverage over time.
Negative Factors
Interest Costs
Interest costs are slightly higher than previously expected.

The Gym (GYM) vs. iShares MSCI United Kingdom ETF (EWC)

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 generates revenue primarily through membership fees, which can be structured as monthly subscriptions, annual contracts, or pay-per-visit options. Additionally, the company earns income from personal training sessions and specialized fitness classes, which often carry extra fees beyond the standard membership. Merchandise sales, including fitness apparel and supplements, also contribute to the revenue stream. The Gym may engage in partnerships with health-related brands for promotions and sponsorships, which can provide additional financial support. Seasonal promotions and referral programs help drive membership growth and retention, further bolstering the company's earnings.

The Gym Financial Statement Overview

Summary
The Gym has shown impressive financial recovery with strong revenue growth and improved profitability. However, high leverage and volatility in net income pose risks.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue226.30M204.00M172.90M106.00M80.47M
Gross Profit223.40M201.20M111.40M51.60M29.42M
EBITDA83.40M70.80M56.20M25.10M16.29M
Net Income4.40M-8.40M-19.30M-35.40M-36.37M
Balance Sheet
Total Assets585.60M571.50M595.60M564.70M532.49M
Cash, Cash Equivalents and Short-Term Investments3.00M1.50M5.40M7.30M3.74M
Total Debt401.80M398.10M420.40M380.60M355.50M
Total Liabilities454.00M443.50M461.60M412.60M378.04M
Stockholders Equity131.60M128.00M134.00M152.10M154.44M
Cash Flow
Free Cash Flow55.10M55.80M19.40M11.40M-15.79M
Operating Cash Flow95.10M79.50M63.10M37.10M13.46M
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 Price147.20
Price Trends
50DMA
149.38
Negative
100DMA
144.73
Positive
200DMA
145.34
Positive
Market Momentum
MACD
-2.15
Negative
RSI
48.15
Neutral
STOCH
73.85
Neutral
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 147.2 is above the 20-day moving average (MA) of 146.13, below the 50-day MA of 149.38, and above the 200-day MA of 145.34, indicating a neutral trend. The MACD of -2.15 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 73.85 is Neutral, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
£424.45M15.2118.88%4.81%7.46%-18.88%
67
Neutral
£778.00M13.9916.38%2.04%3.70%57.10%
64
Neutral
£469.12M37.011.27%3.95%24.95%-16.86%
63
Neutral
£469.12M54.751.27%2.67%24.95%-16.86%
63
Neutral
AU$3.11B28.6925.32%4.52%2.39%-30.11%
61
Neutral
£259.42M58.163.39%10.93%
55
Neutral
£501.22M48.146.87%9.45%-57.24%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GYM
The Gym
145.40
-3.80
-2.55%
GB:BOWL
Hollywood Bowl
252.00
-47.75
-15.93%
GB:JDW
J D Wetherspoon
734.00
-8.99
-1.21%
GB:YNGA
Young & Co'S Brewery
848.00
-89.26
-9.52%
GB:YNGN
Young & Co'S Brewery
584.00
-73.01
-11.11%
GB:AO
AO World
89.50
-25.50
-22.17%

The Gym Corporate Events

Regulatory Filings and Compliance
The Gym Group PLC Announces Total Voting Rights Update
Neutral
Aug 4, 2025

The Gym Group PLC announced that as of July 31, 2025, its issued share capital consists of 179,343,858 ordinary shares, each carrying one vote. This information is crucial for shareholders to determine their notification requirements under the UKLA’s Disclosure Guidance and Transparency Rules, impacting how they manage their investments and interests in the company.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Business Operations and Strategy
Goldman Sachs Increases Stake in The Gym Group
Neutral
Jul 22, 2025

The Gym Group PLC has announced a significant change in its shareholder structure, with The Goldman Sachs Group, Inc. acquiring a substantial voting interest. As of July 17, 2025, Goldman Sachs holds a 10.685137% voting interest in The Gym Group, marking a notable increase from their previous position. This shift in ownership could influence the company’s strategic direction and potentially impact its market positioning, given Goldman Sachs’ substantial influence and resources.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Private Placements and Financing
Blantyre Capital Reduces Stake in The Gym Group Amid Strong Investor Demand
Neutral
Jul 22, 2025

The Gym Group PLC announced that Blantyre Capital Limited has sold a portion of its shares in the company through a secondary placing, altering its shareholding and voting rights. Despite the sale, Blantyre retains a significant stake and has agreed to a six-month lock-up on further share disposals. The transaction was oversubscribed, indicating strong investor interest, but The Gym Group will not receive any proceeds from this transaction.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Business Operations and Strategy
FORUM European Smallcaps GmbH Increases Stake in The Gym Group
Neutral
Jul 21, 2025

The Gym Group PLC has announced a change in its shareholder structure, as FORUM European Smallcaps GmbH, based in Munich, Germany, has increased its voting rights in the company from 3.70% to 4.17%. This acquisition of voting rights signifies a growing interest and investment in The Gym Group, potentially impacting its strategic decisions and market positioning.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Business Operations and Strategy
Astaris Capital Increases Stake in The Gym Group
Neutral
Jul 18, 2025

The Gym Group PLC has announced a change in its major holdings, with Astaris Capital Management LLP acquiring a significant portion of voting rights. This acquisition increases Astaris’s total voting rights to 6.357808%, indicating a strategic move that could influence the company’s decision-making processes and potentially impact its market positioning.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.60 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Business Operations and Strategy
The Gym Group PLC Announces Change in Major Holdings
Neutral
Jul 17, 2025

The Gym Group PLC has announced a change in its major holdings, as Oxy Capital – SGOIC, S.A., based in Lisbon, Portugal, has acquired a 3.487941% voting rights stake in the company. This acquisition reflects a significant shift in the ownership structure and could influence the company’s strategic direction, potentially impacting stakeholders and the overall market positioning of The Gym Group.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
The Gym Group Reports Strong H1 2025 Performance and Expansion Plans
Positive
Jul 9, 2025

The Gym Group reports a positive trading update for the first half of 2025, with an 8% increase in revenue to £121.0m and a 4% rise in average membership. The company opened three new gyms and plans to open 14-16 in total by year-end, while also reducing net debt. A one-year extension and increase in bank facilities have been secured, enhancing financial flexibility. The company remains optimistic about its full-year outlook, driven by strong membership growth and strategic site developments.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Regulatory Filings and Compliance
Royal Bank of Canada Reduces Stake in The Gym Group PLC
Neutral
Jul 3, 2025

The Gym Group PLC has announced a change in its major holdings, with the Royal Bank of Canada reducing its voting rights from 7.007392% to 6.812129%. This adjustment in holdings was notified on June 30, 2025, following the crossing of the threshold on June 26, 2025. The change reflects a slight decrease in the Royal Bank of Canada’s influence over the company’s voting rights, which may impact future decision-making processes within the company.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

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

The Gym Group plc announced that as of June 30, 2025, its issued share capital consists of 179,335,918 ordinary shares, each with one vote. This information is crucial for shareholders to determine their interests under the UKLA’s Disclosure Guidance and Transparency Rules, impacting how they manage their investments in the company.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
The Gym Group PLC Announces Major Holdings Change
Neutral
Jun 27, 2025

The Gym Group PLC has announced a change in its major holdings, with Astaris Capital Management LLP acquiring a significant portion of voting rights through financial instruments. This acquisition, facilitated through Goldman Sachs Securities, indicates a strategic move that could influence the company’s future decision-making processes and potentially impact its market positioning.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Business Operations and Strategy
The Gym Group Showcases Strategic Expansion at Elephant & Castle
Positive
Jun 11, 2025

The Gym Group is hosting a site visit and presentation at its Elephant & Castle gym, highlighting its strategic evolution and expansion plans. The company is accelerating its self-funded rollout, aiming to open 14-16 new gyms in 2025 and approximately 50 over three years, focusing on a scalable, cost-effective model. The Elephant & Castle site exemplifies the Group’s evolving proposition, appealing particularly to Gen Z gym-goers, and demonstrates its commitment to maintaining high-quality, low-cost fitness options.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Financial Disclosures
The Gym Group to Release Pre-Close Trading Update
Neutral
Jun 9, 2025

The Gym Group announced its intention to release a pre-close trading update for the first half of 2025 on July 9. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational progress, potentially influencing market perceptions and investment decisions.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Regulatory Filings and Compliance
The Gym Group PLC Announces Total Voting Rights Update
Neutral
Jun 2, 2025

The Gym Group PLC announced that as of May 31, 2025, its issued share capital consists of 179,332,517 ordinary shares, each with one vote, and holds no shares in treasury. This information is crucial for shareholders to calculate their interests according to the UKLA’s Disclosure Guidance and Transparency Rules, impacting how they manage their investments in the company.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 15, 2025