Holmes Place (HLMS) AI Stock Analysis

• Market Cap: 674.85M
• Dividend Yield: 7.48%
• Average Volume (3M): 69.90K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.69
• Revenue Growth: 9.24%
• EPS Growth: -20.24%
• Country: IL
• Employees: 221
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Leisure
• EPS (TTM): 5.40
• Shares Outstanding: 91,915,790
• 10 Day Avg. Volume: 109,131
• 30 Day Avg. Volume: 69,904
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 862.00
• Price Target Upside: 11.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: 862.00 ▲(11.54% Upside)

Holmes Place's stock is supported by strong technical momentum and an attractive dividend yield, which are significant strengths. However, the high leverage and declining free cash flow growth present risks that need to be managed. The fair valuation further supports a positive outlook, but financial performance concerns slightly temper the overall score.

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 profitability, with efficient operations reflected in solid margins. However, the high leverage and recent decline in free cash flow growth pose potential risks. The company should focus on managing debt levels and improving cash flow generation to sustain its growth trajectory.

Income Statement

Holmes Place has shown strong revenue growth with a TTM increase of 13.1%, indicating a positive trajectory. The gross profit margin is stable at around 25.7%, and the net profit margin is healthy at 7.0%. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures. The EBIT and EBITDA margins remain robust, reflecting efficient operations.

Balance Sheet

The company has a high debt-to-equity ratio of 11.22, indicating significant leverage, which could pose risks in a downturn. However, the return on equity is strong at 34.9%, suggesting effective use of equity. The equity ratio is low, highlighting reliance on debt financing.

Cash Flow

Operating cash flow is solid, covering 71.3% of net income, and the free cash flow to net income ratio is healthy at 55.6%. However, the free cash flow has decreased by 10.4% in the TTM, which could impact future investments. The company needs to manage cash flows carefully to maintain financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	573.01M	552.22M	508.51M	461.19M	311.06M	196.34M
Gross Profit	144.92M	143.32M	133.49M	106.44M	24.78M	-42.59M
EBITDA	221.40M	213.94M	192.81M	165.71M	103.24M	48.79M
Net Income	34.86M	46.50M	40.06M	31.71M	-21.81M	-78.88M
Balance Sheet
Total Assets	1.45B	1.38B	1.27B	1.24B	994.37M	1.05B
Cash, Cash Equivalents and Short-Term Investments	7.38M	27.31M	16.79M	53.34M	18.39M	50.41M
Total Debt	1.20B	1.12B	1.02B	990.89M	817.86M	842.11M
Total Liabilities	1.35B	1.26B	1.14B	1.12B	914.37M	949.66M
Stockholders Equity	100.99M	124.38M	121.47M	123.49M	81.66M	102.14M
Cash Flow
Free Cash Flow	90.99M	102.00M	92.24M	99.65M	23.16M	18.55M
Operating Cash Flow	174.07M	167.55M	142.81M	124.60M	43.56M	35.71M
Investing Cash Flow	-91.07M	-71.84M	-54.05M	-34.56M	-17.93M	-24.95M
Financing Cash Flow	-87.14M	-84.90M	-125.16M	-55.12M	-57.65M	17.77M

Holmes Place Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 772.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 772.8 is above the 20-day moving average (MA) of 730.10, above the 50-day MA of 714.36, and above the 200-day MA of 651.49, indicating a bullish trend. The MACD of 7.66 indicates Negative momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 72.84 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	73 Outperform	674.85M	19.32		7.48%	9.24%	-20.24%
Sector *	61 Neutral	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
NTO	―	652.59M	7.30		―	―	―
MTRN	50 Neutral	490.66M	11.31		8.73%	-16.14%	-261.85%
MGOR	―	6.02B	6.22		2.12%	―	―
GLRS	56 Neutral	618.52M	8.87		9.53%	―	―
MRG	―	285.65M	―		―	―	―