Holmes Place (HLMS) AI Stock Analysis

• Market Cap: 641.93M
• Dividend Yield: 594.54%
• Average Volume (3M): 33.98K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.68
• Revenue Growth: 10.00%
• EPS Growth: -11.23%
• Country: IL
• Employees: 221
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Leisure
• EPS (TTM): 8.70
• Shares Outstanding: 91,822,440
• 10 Day Avg. Volume: 53,770
• 30 Day Avg. Volume: 33,984
• PEG Ratio: -1.15
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.39
• 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: 68 Neutral
• Price Target: 775.00 ▲(8.70%Upside)

Holmes Place's strong financial performance is its most significant strength, driven by robust revenue and profit growth, despite high leverage. Technical analysis presents mixed signals, with bearish momentum and neutral indicators. Valuation concerns arise from the unsustainable dividend yield.

Holmes Place Business Overview & Revenue Model

Company Description

Holmes Place (HLMS) is a premium health club chain that operates fitness and wellness centers across various locations. The company focuses on providing comprehensive health and fitness services, including state-of-the-art gym facilities, personal training, group exercise classes, spa services, and nutrition counseling. Holmes Place aims to enhance the well-being of its members by offering a holistic approach to fitness and health.

How the Company Makes Money

Holmes Place generates revenue primarily through membership fees, which provide access to their fitness facilities and services. Additional income is derived from personal training sessions, specialized fitness programs, and group classes that require separate charges. The company also earns from spa and wellness services, including massage and beauty treatments. Merchandise sales, such as fitness apparel and nutritional products, further contribute to revenue. Strategic partnerships with health and wellness brands can also enhance earnings through promotional activities and co-branded offerings.

Holmes Place Financial Statement Overview

Summary

Holmes Place demonstrates strong revenue growth and operational profitability with high EBIT and EBITDA margins. However, a high debt-to-equity ratio poses potential risks despite strong returns on equity and cash flow management.

Income Statement

Holmes Place has demonstrated robust revenue growth over the years, with a notable increase from $196 million in 2020 to $567 million in TTM 2025. Gross profit margin has improved significantly, reaching approximately 25.7% in TTM 2025, highlighting efficiency in managing costs. Net profit margin has stabilized, with a respectable 7% in TTM 2025. EBIT and EBITDA margins are strong at 16.7% and 38.7%, respectively, indicating healthy operational profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 11.22 in TTM 2025, indicating significant leverage which could pose risks during downturns. However, a positive return on equity of 37.5% in TTM 2025 reflects effective use of equity to generate profits. The equity ratio is relatively low at 7.3%, suggesting a reliance on debt financing.

Cash Flow

Holmes Place shows a healthy trend in operating cash flows, with a notable increase to $183 million in TTM 2025. The free cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate has slightly declined compared to previous periods.

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: 713.00
• 50DMA: Negative
• 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 713 is below the 20-day moving average (MA) of 720.88, below the 50-day MA of 726.46, and above the 200-day MA of 611.11, indicating a neutral trend. The MACD of -5.16 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.19 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
GLRS	81 Outperform	751.61M	10.23		775.82%	―	―
HLMS	68 Neutral	641.93M	16.11		594.54%	10.00%	-11.23%
MTRN	60 Neutral	491.31M	11.31		915.91%	-16.69%	-159.50%
Sector *	57 Neutral	HK$25.90B	4.13	-2.03%	5.77%	-0.31%	-67.64%

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.