The Gym (GYM) AI Stock Analysis

• Market Cap: £241.48M
• Dividend Yield: N/A
• Average Volume (3M): 174.96K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.43
• Revenue Growth: 8.74%
• EPS Growth: N/A
• Country: UK
• Employees: 1,837
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.03
• Shares Outstanding: 179,370,500
• 10 Day Avg. Volume: 162,883
• 30 Day Avg. Volume: 174,959
• PEG Ratio: -0.39
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 4.79
• 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: £182.50
• Price Target Upside: 29.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: 161.00p ▲(14.18% Upside)

The Gym's strong financial recovery and positive earnings call sentiment are significant strengths. However, high leverage and a relatively high P/E ratio present risks. The stock's technical indicators suggest neutral momentum.

Positive Factors

Revenue Growth

The Gym's consistent revenue and membership growth indicate strong market demand and effective customer retention strategies, supporting long-term financial stability.

Debt Reduction

Reducing debt levels enhances financial flexibility and reduces interest expenses, improving the company's ability to invest in growth opportunities.

Market Trends

Rising gym penetration and increased fitness engagement among younger demographics suggest a favorable long-term demand trend for The Gym's services.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, particularly if revenue growth slows or interest rates rise, impacting long-term stability.

Central Costs Growth

Rising central costs can pressure margins and reduce profitability, necessitating careful cost management to maintain financial performance.

Inflationary Pressures

Inflationary pressures on site costs could erode margins and profitability, requiring strategic adjustments to pricing or cost structures to sustain earnings.

The Gym Business Overview & Revenue Model

Company Description

The Gym Group plc operates a chain of health and fitness facilities in the United Kingdom. As of December 31, 2021, it operated 202 gym sites under The Gym Group brand. The company was founded in 2007 and is based in Croydon, the United Kingdom.

How the Company Makes Money

The Gym generates revenue primarily through membership fees, which can be structured as monthly subscriptions, annual contracts, or pay-per-visit options. Additionally, the company earns income from personal training sessions and specialized fitness classes, which often carry extra fees beyond the standard membership. Merchandise sales, including fitness apparel and supplements, also contribute to the revenue stream. The Gym may engage in partnerships with health-related brands for promotions and sponsorships, which can provide additional financial support. Seasonal promotions and referral programs help drive membership growth and retention, further bolstering the company's earnings.

The Gym Financial Statement Overview

Summary

The Gym has shown impressive financial recovery with a strong increase in revenue and profitability. Operational efficiency is evident, but high leverage and potential risks associated with debt levels require careful management.

Income Statement

The Gym has demonstrated a strong recovery with a significant increase in revenue from 2023 to 2024, growing by 10.98%. Gross profit margin remains robust, and the company has improved its net income position from a loss to a profit. EBIT and EBITDA margins are healthy, indicating operational efficiency. However, historical volatility in net income highlights some underlying risks.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses potential risks. The equity ratio is moderate, reflecting an average reliance on equity financing. Return on equity has improved as the company returned to profitability, but the high level of total debt warrants caution.

Cash Flow

The Gym's cash flow is strong with substantial operating cash flow growth and positive free cash flow. The free cash flow to net income ratio is favorable, highlighting effective cash conversion. However, fluctuations in capital expenditures and high debt levels may impact future cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	235.20M	226.30M	204.00M	172.90M	106.00M	80.47M
Gross Profit	201.90M	223.40M	201.20M	111.40M	51.60M	29.42M
EBITDA	72.70M	83.40M	70.80M	56.20M	25.10M	-9.10M
Net Income	7.50M	4.40M	-8.40M	-19.30M	-35.40M	-36.37M
Balance Sheet
Total Assets	589.20M	585.60M	571.50M	595.60M	564.70M	532.49M
Cash, Cash Equivalents and Short-Term Investments	9.30M	3.00M	1.50M	5.40M	7.30M	3.74M
Total Debt	398.60M	401.80M	398.10M	420.40M	380.60M	355.50M
Total Liabilities	454.40M	454.00M	443.50M	461.60M	412.60M	378.04M
Stockholders Equity	134.80M	131.60M	128.00M	134.00M	152.10M	154.44M
Cash Flow
Free Cash Flow	58.80M	55.10M	55.80M	19.40M	11.40M	-15.79M
Operating Cash Flow	96.50M	95.10M	79.50M	63.10M	37.10M	13.46M
Investing Cash Flow	-42.90M	-39.50M	-23.40M	-48.70M	-25.70M	-30.21M
Financing Cash Flow	-49.00M	-54.10M	-60.00M	-16.30M	-7.80M	16.10M

The Gym Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 141.00
• 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 GB:GYM, the sentiment is Neutral. The current price of 141 is above the 20-day moving average (MA) of 138.65, below the 50-day MA of 142.98, and below the 200-day MA of 142.13, indicating a neutral trend. The MACD of -1.50 indicates Negative momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 75.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:GYM.

The Gym Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOWL	76 Outperform	£454.67M	16.39	18.88%	4.47%	7.46%	-18.88%
GYM	70 Neutral	£241.48M	32.16	5.72%	―	8.74%	―
YNGN	66 Neutral	£440.49M	38.78	1.27%	3.77%	24.95%	-16.86%
JDW	64 Neutral	£683.68M	10.69	17.81%	1.71%	4.52%	50.39%
AO	63 Neutral	£577.26M	55.74	6.87%	―	9.45%	-57.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YNGA	58 Neutral	£440.49M	48.86	1.27%	2.96%	24.95%	-16.86%

The Gym Corporate Events

The Gym Group Launches 2025 Employee Share Option Scheme

The Gym Group PLC has announced the launch of its 2025 Save As You Earn Scheme, allowing eligible employees to subscribe for options over the company’s ordinary shares at a set exercise price. This initiative, which has seen participation from 101 employees, aims to enhance employee engagement and investment in the company’s future, potentially impacting its operational dynamics and stakeholder relations.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £161.00 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

The Gym Group’s Director Takes Chair Role at Beauty Tech Group

The Gym Group has announced that Elaine O’Donnell, a Non-Executive Director, has taken on the role of Non-Executive Chair at The Beauty Tech Group plc, which has commenced trading on the London Stock Exchange. This move highlights the interconnectedness of leadership roles across industries and may influence strategic decisions within The Gym Group as it navigates its market position.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £155.00 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

The Gym Group Announces Total Voting Rights Update

The Gym Group PLC announced that as of September 30, 2025, its total issued share capital consists of 179,362,989 ordinary shares, each with one vote. This figure is significant for shareholders as it serves as the denominator for calculating their interest in the company under the UKLA’s Disclosure Guidance and Transparency Rules, impacting how they report changes in their shareholding.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £155.00 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

The Gym Group’s Earnings Call Highlights Strong Growth

The Gym Group’s recent earnings call painted a largely positive picture, underscored by robust growth in revenue, EBITDA, and membership numbers. The company demonstrated effective cost management and made strides in reducing debt. Despite these achievements, there were some concerns about the growth of central costs and anticipated inflationary pressures on site costs. Overall, the sentiment was optimistic, driven by significant accomplishments and strategic progress.

The Gym Group Reports Strong Interim Results and Continued Growth

The Gym Group announced strong interim results for the first half of 2025, with an 8% increase in revenue and a 24% rise in Group Adjusted EBITDA Less Normalised Rent. The company’s strategic ‘Next Chapter’ growth plan is driving significant progress, with new site openings, enhanced member management, and targeted marketing efforts, particularly towards Gen Z. The company is on track to open 14-16 new sites this year, funded by free cash flow, and expects full-year results to meet the top end of market expectations. The Gym Group’s focus on pricing optimization and member engagement has resulted in increased membership and revenue, positioning it well for sustained growth in the competitive gym industry.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £155.00 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

The Gym Group Announces Total Voting Rights Update

The Gym Group PLC announced that as of August 31, 2025, its issued share capital consists of 179,353,179 ordinary shares, each with one vote, and holds no shares in treasury. This information is crucial for shareholders to determine their interests in accordance with the UK’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £153.00 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.

The Gym Group PLC Announces Total Voting Rights Update

The Gym Group PLC announced that as of July 31, 2025, its issued share capital consists of 179,343,858 ordinary shares, each carrying one vote. This information is crucial for shareholders to determine their notification requirements under the UKLA’s Disclosure Guidance and Transparency Rules, impacting how they manage their investments and interests in the company.

The most recent analyst rating on (GB:GYM) stock is a Hold with a £1.45 price target. To see the full list of analyst forecasts on The Gym stock, see the GB:GYM Stock Forecast page.