Life Time Group Holdings (LTH) AI Stock Analysis

• Market Cap: $6.77B
• Dividend Yield: N/A
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 43.6
• Beta (1Y): 1.21
• Revenue Growth: 18.24%
• EPS Growth: 99.18%
• Country: US
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Leisure
• EPS (TTM): 0.74
• Shares Outstanding: 209,616,030
• 10 Day Avg. Volume: 1,579,206
• 30 Day Avg. Volume: 2,011,784
• PEG Ratio: 0.44
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.44
• Price Target Upside: 6.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Life Time Group Holdings' overall stock score reflects its strong financial performance and positive earnings call, indicating robust growth prospects. The company's effective leverage management and significant improvements in revenue and cash flow generation are key strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals, warranting cautious optimism.

Positive Factors

Digital Expansion

The company's digital app has more than 1.7 million subscribers and is growing rapidly, which could exceed 3 million by the end of the next fiscal year.

Financial Performance

The company raised its revenue outlook and adjusted EBITDA margins, suggesting confidence in its future growth and profitability.

Membership and Revenue Growth

The company has set new records in member retention and in-center revenue, reflecting strong business momentum.

Negative Factors

Capacity and Demand

There is a significant embedded pricing opportunity as membership demand exceeds desired capacity.

Economic Environment

LTH is a premium gym operator catering to higher income demographics, which are expected to be more resilient in the current macroeconomic environment.

Market Competition

LTH is quickly adapting to fast-growing leisure trends, expanding offerings like pickleball and cold plunge tubs.

Life Time Group Holdings Business Overview & Revenue Model

Company Description

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. Its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content, as well as access to Apple Fitness+ that offers members content and wellness data monitoring. The company is also involved in media activities, conducting athletic events, and provision of related services. As of December 31, 2021, it operated 151 centers in 29 states and one Canadian Province, 63 of which were owned, including ground leases and 88 of which were leased. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.

How the Company Makes Money

Life Time Group Holdings generates revenue primarily through membership subscriptions, which provide access to its fitness and wellness centers and the various services and amenities offered therein. In addition to membership fees, the company earns money from personal training services, spa and salon services, and the sale of food and beverages. Life Time also hosts athletic events and programs, which can contribute to additional revenue streams. The company may engage in partnerships or sponsorships that align with its brand and wellness-focused mission, further enhancing its revenue potential. Real estate development associated with its centers can also play a role in its financial strategy.

Life Time Group Holdings Financial Statement Overview

Summary

Life Time Group Holdings shows strong revenue growth and improved leverage management. The company improved its gross profit margin significantly and turned its cash flow from negative to positive. However, there is still room for improvement in profitability margins and return on equity.

Income Statement

Life Time Group Holdings has shown a consistent revenue growth trajectory with a notable increase in total revenue year-over-year. The gross profit margin has significantly improved from 32% in 2023 to 88% in 2024, indicating a more efficient cost structure. The net profit margin improved from 3% in 2023 to 6% in 2024, reflecting better profitability. However, the EBIT and EBITDA margins suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio improved from 1.89 in 2023 to 0.95 in 2024, signifying better leverage management. The equity ratio increased slightly, indicating a stronger balance sheet. However, the return on equity remains moderate, suggesting that while leverage has improved, profitability could still be enhanced further.

Cash Flow

Life Time Group Holdings demonstrated a turnaround in free cash flow from negative in 2023 to positive in 2024, a strong indicator of improved cash generation capacity. The operating cash flow to net income ratio is robust, showcasing effective cash flow management. Yet, the free cash flow to net income ratio reveals potential for further optimization.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.62B	2.22B	1.82B	1.32B	948.38M
	Gross Profit
2.32B	708.96M	754.35M	473.95M	288.33M
	EBIT
357.48M	233.18M	110.62M	-495.19M	-359.15M
	EBITDA
632.16M	469.98M	339.50M	-260.07M	-111.64M
	Net Income Common Stockholders
156.24M	76.06M	-1.79M	-579.37M	-360.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.88M	29.97M	25.51M	31.64M	33.20M
	Total Assets
7.15B	7.03B	6.63B	6.26B	6.02B
	Total Debt
2.47B	4.26B	4.04B	3.76B	4.06B
	Net Debt
2.45B	4.23B	4.01B	3.72B	4.03B
	Total Liabilities
4.54B	4.78B	4.50B	4.17B	4.54B
	Stockholders Equity
2.61B	2.25B	2.12B	2.09B	1.48B
Cash Flow		Free Cash Flow
50.58M	-230.90M	-390.21M	-348.94M	-361.60M
	Operating Cash Flow
575.12M	463.00M	200.97M	-20.03M	-95.98M
	Investing Cash Flow
-292.74M	-574.16M	-243.54M	-269.92M	-6.12M
	Financing Cash Flow
-284.38M	115.55M	36.80M	288.40M	87.39M

Life Time Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.32
• 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 LTH, the sentiment is Positive. The current price of 32.32 is above the 20-day moving average (MA) of 30.55, above the 50-day MA of 30.53, and above the 200-day MA of 26.12, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 58.32 is Neutral, neither overbought nor oversold. The STOCH value of 79.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTH.

Life Time Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTH	70 Outperform	$6.77B	43.64	6.42%	―	18.24%	99.18%
HGV	70 Outperform	$3.57B	83.46	1.90%	―	25.21%	-83.25%
MTN	67 Neutral	$5.32B	20.91	38.12%	6.32%	3.57%	13.75%
CHDN	66 Neutral	$6.73B	16.59	44.13%	0.44%	11.75%	24.31%
PLNT	61 Neutral	$8.36B	49.39	-79.88%	―	10.30%	23.45%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
CZR	58 Neutral	$5.78B	―	-5.56%	―	-1.25%	-130.83%

Life Time Group Holdings Corporate Events

Life Time Group Holdings Appoints New Board Director

On April 25, 2025, Life Time Group Holdings, Inc. appointed Jennifer Pomerantz to its Board of Directors following the annual meeting of stockholders. Ms. Pomerantz will serve as a Class II director until 2026 and will be part of the Nominating and Corporate Governance Committee and the Capital Allocation Committee. Her appointment increases the number of independent directors on the board to ten out of thirteen members. During the same meeting, stockholders elected four Class I directors to serve until 2028, approved the executive officer compensation, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025.

Spark’s Take on LTH Stock

According to Spark, TipRanks’ AI Analyst, LTH is a Outperform.

Life Time Group Holdings’ overall stock score reflects its strong financial performance and positive earnings call, indicating robust growth prospects. The company’s effective leverage management and significant improvements in revenue and cash flow generation are key strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals, warranting cautious optimism.

To see Spark’s full report on LTH stock, click here.