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The Gym (GYM) AI Stock Analysis
The Gym
(LSE:GYM)
The score is driven primarily by improving operating results and solid cash generation, tempered by high leverage on the balance sheet. The earnings call/guidance was a meaningful positive tailwind, but the stock is penalized by a high P/E valuation and only neutral-to-soft technical momentum (negative MACD and price below key short-term moving averages).
The Gym (GYM) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 315.90M
- Dividend Yield
- ―
- Average Volume (3M)
- 165.59K
- Price to Earnings (P/E)
- 38.2
- Beta (1Y)
- 0.46
- Revenue Growth
- 9.27%
- EPS Growth
- 12.91%
- Country
- UK
- Employees
- 2,003
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Leisure
The Gym Business Overview & Revenue Model
Company Description
The Gym Group plc is a UK-based operator managing a chain of health and fitness centers. As of December 31, 2021, the company oversaw 202 gym locations, all operating under its proprietary "The Gym Group" brand. Established in 2007, its corporate hea...
How the Company Makes Money
The Gym Group primarily makes money through recurring gym membership fees paid by customers for access to its fitness clubs. A secondary source of revenue comes from in-gym ancillary income (e.g., add-on services and products sold at gym locations)....
The Gym Earnings Call Summary
The call was strongly positive overall. The company reported broad-based growth in membership, revenue, EBITDA, adjusted profit before tax, and free cash flow; maintained 1x leverage; continued its share buyback; and reported strong returns from new sites and refurbishments. Management also raised confidence in the full-year EBITDA outlook and highlighted multiple market, technology, pricing, and expansion opportunities. The main challenges were higher year-on-year net debt, site-cost and lease inflation, higher financing and non-cash charges, a back-weighted rollout, competitive pressure on like-for-like volume, and a small number of loss-making sites.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For full year 2026, The Gym Group expects like-for-like revenue growth of approximately 3%, like-for-like site cost inflation at the lower end of its guided range of 3%-4%, EBITDA less normalized rent at the top end of current analyst forecast range of GBP 60.5 million-GBP 62 million, total capital expenditure of GBP 60 million-GBP 65 million, at least 20 new openings, six further major refurbishments by year-end, and the GBP 10 million share buyback to be completed by year-end; property maintenance CapEx is expected to remain at approximately 6% of revenue over the full year, the full year effective tax rate is expected to be circa 18% with no cash tax charge, and no cash tax is expected until 2030; the three-year rollout target is approximately 75 new sites with an average ROIC of at least 30%.
The Gym Financial Statement Overview
Summary
Operating performance and cash generation have improved meaningfully (positive profitability in 2024–2025, ~12.6% operating margin and ~£57m free cash flow in 2025). The key constraint is balance-sheet risk: leverage remains high (2025 debt ~£410m vs equity ~£142m; ~2.9x debt-to-equity), which reduces flexibility if trading or refinancing conditions weaken.
Income Statement
72PositiveBalance Sheet
48NeutralCash Flow
67Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 257.00M | 244.90M | 226.30M | 204.00M | 172.90M | 106.00M |
| Gross Profit | 188.80M | 179.50M | 223.40M | 201.20M | 111.40M | 51.60M |
| EBITDA | 97.50M | 90.80M | 83.40M | 70.80M | 56.20M | 25.10M |
| Net Income | 8.40M | 7.40M | 4.40M | -8.40M | -19.30M | -35.40M |
Balance Sheet | ||||||
| Total Assets | 618.40M | 615.90M | 585.60M | 571.50M | 595.60M | 564.70M |
| Cash, Cash Equivalents and Short-Term Investments | 9.00M | 3.00M | 3.00M | 1.50M | 5.40M | 7.30M |
| Total Debt | 413.40M | 409.70M | 401.80M | 398.10M | 420.40M | 380.60M |
| Total Liabilities | 477.70M | 474.20M | 454.00M | 443.50M | 461.60M | 412.60M |
| Stockholders Equity | 140.70M | 141.70M | 131.60M | 128.00M | 134.00M | 152.10M |
Cash Flow | ||||||
| Free Cash Flow | 58.50M | 56.80M | 55.10M | 55.80M | 19.40M | 11.40M |
| Operating Cash Flow | 102.10M | 97.90M | 95.10M | 79.50M | 63.10M | 37.10M |
| Investing Cash Flow | -56.90M | -51.20M | -39.50M | -23.40M | -48.70M | -25.70M |
| Financing Cash Flow | -45.50M | -46.70M | -54.10M | -60.00M | -16.30M | -7.80M |
The Gym Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GYM, the sentiment is Negative. The current price of 183.50 is below the 20-day moving average (MA) of 183.63, below the 50-day MA of 188.81, and below the 200-day MA of 188.70, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GYM.
The Gym Peers Comparison
Overall Rating
GB:RFX76Outperform
GB:BOWL75.2Outperform
GB:MAB69Neutral
GB:WTB68Neutral
GB:JDW67Neutral- GB:GYM61Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:RFX | 76Outperform | GBP 206.11M | 10.34 | 29.66% | 2.38% | 43.98% | 97.22% |
| GB:BOWL | 75Outperform | GBP 456.52M | 13.57 | 21.75% | 5.00% | 9.35% | 20.14% |
| GB:MAB | 69Neutral | GBP 1.91B | 10.39 | 6.41% | ― | 2.96% | 9.30% |
| GB:WTB | 68Neutral | GBP 4.59B | 79.16 | 1.85% | 3.54% | 1.99% | -75.93% |
| GB:JDW | 67Neutral | GBP 1.04B | 18.63 | 17.99% | 1.13% | 5.19% | -3.45% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GB:GYM | 61Neutral | GBP 312.94M | 38.23 | 5.95% | ― | 9.27% | 12.91% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:GYM | The Gym | 183.50 | 45.10 | 32.59% | |
| GB:BOWL | Hollywood Bowl | 274.00 | 16.15 | 6.26% | |
| GB:MAB | Mitchells & Butlers | 322.00 | 78.50 | 32.24% | |
| GB:RFX | Ramsdens Holdings | 631.00 | 303.94 | 92.93% | |
| GB:JDW | J D Wetherspoon | 1062.00 | 424.78 | 66.66% | |
| GB:WTB | Whitbread plc | 2739.00 | -24.02 | -0.87% |
The Gym Corporate Events
The Gym Group Cuts Share Count with Targeted Buyback
PositiveThe Gym Group plc has repurchased 255,824 ordinary shares between 28 September and 2 October 2026, at prices ranging from 179.50p to 183.00p and a volume weighted average price of 182.18p. The shares were bought through Peel Hunt LLP on the London St...
The Gym Group Adds Further Ordinary Shares to London Listing
NeutralThe Gym Group plc has admitted 4,355 additional ordinary shares of £0.0001 each to trading on the London Stock Exchange’s Main Market, under an existing block admission. Following this move, the company’s total number of ordinary sha...
The Gym Group Confirms Total Voting Share Capital
NeutralThe Gym Group plc has confirmed that its issued share capital currently comprises 176,207,315 ordinary shares, each carrying voting rights, with none of these shares held in treasury. This disclosure clarifies the total number of voting shares that i...
The Gym Group Cuts Share Count with Latest Buyback and Cancellation
PositiveThe Gym Group has repurchased 168,262 ordinary shares between 21 and 25 September 2026 at prices ranging from 181.50p to 192.00p, with a volume-weighted average price of 186.96p. All of these shares will be cancelled, reducing the company’s sha...
The Gym Group Cancels 199,040 Shares After Buyback
PositiveThe Gym Group plc has executed a share buyback, purchasing 199,040 ordinary shares between 14 and 18 September 2026 on the London Stock Exchange through Peel Hunt LLP. The company intends to cancel these shares, reducing its issued share capital and...
The Gym Group Cuts Share Count With Targeted Buyback and Cancellation
PositiveThe Gym Group plc has executed a share buyback, purchasing 155,448 ordinary shares between 7 and 11 September 2026 through Peel Hunt LLP at prices ranging from 193.00p to 205.00p, with a volume-weighted average of 199.52p. The company plans to cancel...
The Gym Group Posts Strong H1 2026 Results and Accelerates Expansion
PositiveThe Gym Group reported a strong first half to 2026, with revenue up 10% to £133.1 million and membership averaging 1 million, driven by a 5% increase in average revenue per member and disciplined cost control. Adjusted profit before tax rose 31%...
The Gym Group Cancels Shares After Targeted Buyback
PositiveThe Gym Group plc has undertaken a small share buyback, purchasing 48,918 ordinary shares between 1 and 4 September 2026 on the London Stock Exchange at prices ranging from 195.50p to 206.00p. The company intends to cancel these shares, reducing tota...
The Gym Group Confirms Total Voting Share Capital
NeutralThe Gym Group plc has confirmed that its issued share capital currently comprises 176,925,829 ordinary shares, all of which carry voting rights and none of which are held in treasury. This disclosure, made in line with the Financial Conduct Authority...
The Gym Group Adds Further Shares to London Listing
NeutralThe Gym Group plc has admitted a further 6,411 ordinary shares of £0.0001 each to trading on the London Stock Exchange’s Main Market, bringing its total issued share capital to 176,925,829 ordinary shares. The newly admitted shares are ful...
The Gym Group cancels 90,835 shares after buyback
PositiveThe Gym Group has repurchased 90,835 of its own ordinary shares on the London Stock Exchange between 24 and 28 August 2026 at prices ranging from 202p to 208p, with a volume-weighted average price of 204.86p. The company plans to cancel these shares,...
The Gym Group Tightens Share Base With Targeted Buyback
PositiveThe Gym Group plc has repurchased 67,871 ordinary shares between 17 and 21 August through Peel Hunt LLP at a volume-weighted average price of 209.25 pence, with prices ranging from 208.50 to 210.00 pence. The company intends to cancel these shares, l...
The Gym Group Cancels 176,729 Shares After Buyback
PositiveThe Gym Group has repurchased 176,729 of its ordinary shares between 10 and 14 August 2026, at prices ranging from 208p to 210p per share, with a volume-weighted average price of 209.21p. The buyback was executed through Peel Hunt and forms part of t...
The Gym Group Cancels 150,224 Shares After Buyback
PositiveThe Gym Group has repurchased 150,224 ordinary shares between 3 and 7 August through Peel Hunt at a volume-weighted average price of 205.58 pence, with individual trades executed between 203 and 209 pence. The company plans to cancel these shares, re...
The Gym Group Updates Total Voting Rights to 177.4 Million Shares
NeutralThe Gym Group plc has confirmed that its issued share capital comprises 177,405,077 ordinary shares of £0.0001 each, with none held in treasury. As a result, the total number of voting rights in the company stands at 177,405,077, providing the r...
The Gym Group cancels 177,507 shares after buyback
PositiveThe Gym Group has bought back 177,507 ordinary shares between 27 and 31 July at prices ranging from 203p to 210p, with a volume-weighted average price of 206.08p. The purchases were made through Peel Hunt and the company plans to cancel all repurchas...
The Gym Group Admits Additional Shares to London Market
NeutralThe Gym Group plc has admitted 4,520 new ordinary shares of £0.0001 each to trading on the London Stock Exchange’s Main Market, issued between 1 and 31 July 2026 under an existing block admission. Following this move, the company’s t...
The Gym Group Cancels Share Buyback Stock to Tighten Equity Base
PositiveThe Gym Group plc has repurchased 77,934 ordinary shares between 20 and 24 July 2026 at prices ranging from 200p to 207p, with a volume-weighted average price of 203.24p. The buyback was executed through Peel Hunt LLP and forms part of the company...
The Gym Group Tightens Share Count With Targeted Buyback
PositiveThe Gym Group plc has executed a share buyback, purchasing 40,520 ordinary shares at a price of 200 pence each via Peel Hunt LLP and intends to cancel them. The move marginally reduces the company’s share count and can be seen as a signal of ma...
The Gym Group Lifts Revenue and Funding as Expansion Accelerates
PositiveThe Gym Group reported continued positive trading momentum in the first half of 2026, with revenue rising 10% year on year to £133.1 million and like-for-like sales up 3%. Average membership climbed 5% to just over one million and revenue per me...
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: Sep 11, 2026