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Holmes Place International Ltd. (IL:HLMS)
:HLMS
Israel Market
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Holmes Place (HLMS) AI Stock Analysis

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IL:HLMS

Holmes Place

(HLMS)

Rating:68Neutral
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 (HLMS) vs. iShares MSCI Israel ETF (EIS)

Holmes Place Business Overview & Revenue Model

Company DescriptionHolmes 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 MoneyHolmes 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
85
Very Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue552.22M508.51M461.19M311.06M196.34M
Gross Profit143.32M133.49M106.44M24.78M-42.59M
EBITDA213.94M192.81M165.71M103.24M48.79M
Net Income46.50M40.06M31.71M-21.81M-78.88M
Balance Sheet
Total Assets1.38B1.27B1.24B994.37M1.05B
Cash, Cash Equivalents and Short-Term Investments27.31M16.79M53.34M18.39M50.41M
Total Debt1.12B1.02B990.89M817.86M842.11M
Total Liabilities1.26B1.14B1.12B914.37M949.66M
Stockholders Equity124.38M121.47M123.49M81.66M102.14M
Cash Flow
Free Cash Flow102.00M92.24M99.65M23.16M18.55M
Operating Cash Flow167.55M142.81M124.60M43.56M35.71M
Investing Cash Flow-71.84M-54.05M-34.56M-17.93M-24.95M
Financing Cash Flow-84.90M-125.16M-55.12M-57.65M17.77M

Holmes Place Technical Analysis

Technical Analysis Sentiment
Positive
Last Price713.00
Price Trends
50DMA
726.46
Negative
100DMA
679.77
Positive
200DMA
611.11
Positive
Market Momentum
MACD
-5.16
Positive
RSI
44.60
Neutral
STOCH
60.19
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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
751.61M10.23
775.82%
68
Neutral
641.93M16.11
594.54%10.00%-11.23%
60
Neutral
491.31M11.31
915.91%-16.69%-159.50%
57
Neutral
HK$25.90B4.13-2.03%5.77%-0.31%-67.64%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:HLMS
Holmes Place
713.00
276.18
63.23%
IL:GLRS
Globrands
60,770.00
23,424.14
62.72%
IL:MTRN
Maytronics
456.20
-1,117.16
-71.00%

Holmes Place Corporate Events

Holmes Place Faces Class Action Over Subscription Fee Increase
Feb 11, 2025

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.

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: Jul 24, 2025