Holmes Place (HLMS) AI Stock Analysis

• Market Cap: 688.25M
• Dividend Yield: 5.3%
• Average Volume (3M): 389.59K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.41
• Revenue Growth: 7.70%
• EPS Growth: -34.56%
• Country: IL
• Employees: 221
• Sector: Services
• Sector Strength: N/A
• Industry: Leisure
• EPS (TTM): 6.00
• Shares Outstanding: 101,586,320
• 10 Day Avg. Volume: 655,029
• 30 Day Avg. Volume: 389,591
• PEG Ratio: 0.80
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 4.94
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 711.00 ▲(4.94% Upside)

Holmes Place's stock score is primarily influenced by its stable financial performance and attractive valuation, with a strong dividend yield. However, the technical analysis indicates bearish momentum, which poses a risk to short-term investors. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for Holmes Place's services, supporting long-term business sustainability and market presence.

Operational Efficiency

Strong EBIT and EBITDA margins demonstrate effective cost management and operational efficiency, enhancing profitability and competitive positioning.

Return on Equity

High return on equity reflects efficient capital utilization, contributing to shareholder value and long-term financial health.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Declining Free Cash Flow

Declining free cash flow generation may constrain the company's ability to fund operations and growth initiatives, affecting long-term sustainability.

Net Profit Margin Pressure

Pressure on net profit margins could signal challenges in maintaining profitability, impacting overall financial performance and strategic flexibility.

Holmes Place Business Overview & Revenue Model

Company Description

Holmes Place International Ltd manages and operates health and fitness clubs under the Holmes Place and Go Active brands. The company was founded in 1979 and is based in Caesarea, Israel. Holmes Place International Ltd is a subsidiary of Holmes Place Group.

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	578.77M	552.22M	508.51M	461.19M	311.06M	196.34M
Gross Profit	145.80M	143.32M	133.49M	106.44M	24.78M	-42.59M
EBITDA	226.27M	213.94M	192.81M	165.71M	103.24M	48.79M
Net Income	30.73M	46.50M	40.06M	31.71M	-21.81M	-78.88M
Balance Sheet
Total Assets	1.55B	1.38B	1.27B	1.24B	994.37M	1.05B
Cash, Cash Equivalents and Short-Term Investments	45.28M	27.31M	16.79M	53.34M	18.39M	50.41M
Total Debt	1.24B	1.12B	1.02B	990.89M	817.86M	842.11M
Total Liabilities	1.37B	1.26B	1.14B	1.12B	914.37M	949.66M
Stockholders Equity	177.26M	124.38M	121.47M	123.49M	81.66M	102.14M
Cash Flow
Free Cash Flow	89.97M	102.00M	92.24M	99.65M	23.16M	18.55M
Operating Cash Flow	175.01M	167.55M	142.81M	124.60M	43.56M	35.71M
Investing Cash Flow	-89.83M	-71.84M	-54.05M	-34.56M	-17.93M	-24.95M
Financing Cash Flow	-53.04M	-84.90M	-125.16M	-55.12M	-57.65M	17.77M

Holmes Place Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 677.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 677.5 is below the 20-day moving average (MA) of 681.91, below the 50-day MA of 707.08, and below the 200-day MA of 692.61, indicating a bearish trend. The MACD of -6.76 indicates Negative momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 24.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:HLMS.

Holmes Place Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTO	72 Outperform	820.22M	10.72	―	―	8.20%	-12.69%
HLMS	59 Neutral	688.25M	20.62	―	5.30%	7.70%	-34.56%
GLRS	56 Neutral	576.34M	9.17	―	6.97%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MTRN	49 Neutral	454.22M	-4.07	―	9.81%	-14.49%	-398.74%