Holmes Place (HLMS) AI Stock Analysis

• Market Cap: 670.30M
• Dividend Yield: 6.57%
• Average Volume (3M): 17.02K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.71
• Revenue Growth: 10.00%
• EPS Growth: -11.23%
• Country: IL
• Employees: 221
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Leisure
• EPS (TTM): 8.70
• Shares Outstanding: 91,822,440
• 10 Day Avg. Volume: 28,374
• 30 Day Avg. Volume: 17,020
• PEG Ratio: -0.05
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.92
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: 881.00 ▲(16.63%Upside)

Holmes Place demonstrates strong financial growth and profitability, supported by robust cash flow. The technical indicators show positive momentum, though caution is advised due to overbought signals. Valuation metrics are favorable, making the stock attractive for income-focused investors. High leverage remains a notable risk factor.

Holmes Place Business Overview & Revenue Model

Company Description

Holmes Place is a premium health and fitness company offering a range of services centered on wellness, fitness, and lifestyle improvements. The company operates in the health and wellness sector, providing members with access to state-of-the-art fitness facilities, personalized training programs, group exercise classes, and wellness services such as nutrition consultations and spa amenities. Holmes Place is dedicated to promoting a holistic approach to health, catering to individuals seeking to improve their physical and mental well-being.

How the Company Makes Money

Holmes Place generates revenue primarily through membership fees, which grant individuals access to its fitness centers and a variety of wellness services. These memberships often include different tiers, providing various levels of access and benefits, such as personal training sessions and exclusive amenities. Additionally, the company earns income from personal training services, wellness programs, and specialized classes that members can purchase separately. Holmes Place may also form partnerships with corporate clients to offer employee wellness programs, providing another revenue stream. Ancillary services, such as spa treatments, nutritional consultations, and retail sales of health and fitness products, further contribute to the company's earnings.

Holmes Place Financial Statement Overview

Summary

Holmes Place shows strong revenue and profit growth, with robust cash flow generation. However, the high debt level poses a risk, necessitating careful leverage management.

Income Statement

Holmes Place has shown robust revenue growth with a significant increase from $311M in 2021 to $552M in 2024. The gross profit margin has improved steadily, reaching 25.9% in 2024. Net profit margin has also strengthened to 8.4%, reflecting improved profitability. EBIT and EBITDA margins have shown consistent growth, indicating strong operational efficiency. Overall, the company demonstrates solid growth and profitability trends.

Balance Sheet

The company has a high debt-to-equity ratio of 9.01 as of 2024, indicating significant leverage which could pose risks. However, the return on equity (ROE) improved to 37.4%, showing effective use of equity to generate profits. The equity ratio is relatively low at 9.0%, suggesting limited equity buffer against liabilities. While profitability metrics are strong, high leverage remains a concern.

Cash Flow

Holmes Place has displayed strong free cash flow growth, reaching $102M in 2024. The operating cash flow to net income ratio is 3.6, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio is also favorable at 2.2. Cash flow metrics highlight the company's solid cash generation and efficient capital management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	552.22M	508.51M	461.19M	311.06M	196.34M
Gross Profit	143.32M	133.49M	106.44M	24.78M	-42.59M
EBITDA	213.94M	192.81M	165.71M	103.24M	48.79M
Net Income	46.50M	40.06M	31.71M	-21.81M	-78.88M
Balance Sheet
Total Assets	1.38B	1.27B	1.24B	994.37M	1.05B
Cash, Cash Equivalents and Short-Term Investments	27.31M	16.79M	53.34M	18.39M	50.41M
Total Debt	1.12B	1.02B	990.89M	817.86M	842.11M
Total Liabilities	1.26B	1.14B	1.12B	914.37M	949.66M
Stockholders Equity	124.38M	121.47M	123.49M	81.66M	102.14M
Cash Flow
Free Cash Flow	102.00M	92.24M	99.65M	23.16M	18.55M
Operating Cash Flow	167.55M	142.81M	124.60M	43.56M	35.71M
Investing Cash Flow	-71.84M	-54.05M	-34.56M	-17.93M	-24.95M
Financing Cash Flow	-84.90M	-125.16M	-55.12M	-57.65M	17.77M

Holmes Place Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 755.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:HLMS, the sentiment is Positive. The current price of 755.4 is above the 20-day moving average (MA) of 731.80, above the 50-day MA of 718.90, and above the 200-day MA of 598.39, indicating a neutral trend. The MACD of 3.10 indicates Positive momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 26.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:HLMS.

Holmes Place Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLMS	79 Outperform	670.30M	16.82		6.57%	10.00%	-11.23%
GLRS	73 Outperform	751.41M	10.28		7.45%	―	―
Sector *	66 Neutral	£1.85B	11.29	6.20%	3.10%	0.61%	-17.57%
MTRN	54 Neutral	519.63M	11.31		15.39%	-16.69%	-159.50%

Holmes Place Corporate Events

Holmes Place Faces Class Action Over Subscription Fee Increase

Holmes Place faces a class action lawsuit in the Tel Aviv District Court, following a claim by a subscriber that the company unlawfully increased monthly subscription fees by 1% due to a VAT rate hike. The lawsuit, representing all affected subscribers, seeks compensation estimated at 2.5 million NIS, although the company believes the legal grounds for the fee adjustment make the lawsuit’s success unlikely.