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The Gym
(LSE:GYM)
Select Model
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Rating:61Neutral
Price Target:
209.00 p
â–²(6.63% Upside)
Action:Reiterated
Date:09/12/26
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).
Positive Factors
Membership and revenue growth
Growing membership and revenue indicate continued demand for The Gym Group’s low-cost proposition and expanding customer reach. The combination of volume growth and higher revenue per member supports recurring income durability and provides a foundation for further operating leverage.
Negative Factors
High balance-sheet leverage
High leverage reduces financial flexibility and leaves less capacity to absorb weaker trading, rising financing costs, or tighter refinancing conditions. Although returns have recovered, modest profitability relative to debt means deleveraging remains an important constraint.
Read all positive and negative factors
Positive Factors
Negative Factors
Membership and revenue growth
Growing membership and revenue indicate continued demand for The Gym Group’s low-cost proposition and expanding customer reach. The combination of volume growth and higher revenue per member supports recurring income durability and provides a foundation for further operating leverage.
Read all positive factors
The Gym (GYM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£342.47M
Dividend Yield0.55%
Average Volume (3M)160.49K
Price to Earnings (P/E)41.3
Beta (1Y)0.42
Revenue Growth9.27%
EPS Growth12.91%
CountryUK
Employees2,003
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.05
Shares Outstanding176,876,900
10 Day Avg. Volume223,637
30 Day Avg. Volume160,488
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)1.85
Price to Sales (P/S)1.07
P/FCF Ratio4.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£271.25Price Target Upside38.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.05
Revenue Forecast (FY)£268.88M
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 ...
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
Earnings Call Date:Sep 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 17, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Strong First-Half Financial Performance
Average membership increased 5% to just over 1 million, revenue rose 10% to GBP 133.1 million, EBITDA less normalized rent increased 12% to GBP 30.8 million, adjusted profit before tax rose 31% to GBP 6.4 million, and statutory profit before tax increased 48% to GBP 4.9 million.
Negative Updates
Net Debt Higher Year on Year
Non-property net debt of GBP 58 million was GBP 6.8 million higher than June last year, reflecting new-gym investment and the share buyback program, although it was GBP 1.3 million lower than the 2025 year-end position.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong First-Half Financial Performance
Average membership increased 5% to just over 1 million, revenue rose 10% to GBP 133.1 million, EBITDA less normalized rent increased 12% to GBP 30.8 million, adjusted profit before tax rose 31% to GBP 6.4 million, and statutory profit before tax increased 48% to GBP 4.9 million.
Read all positive 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
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
67
Positive
| 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
Negative
196.00
Price Trends
204.50
Negative
199.74
Negative
182.68
Positive
Market Momentum
-2.10
Positive
46.47
Neutral
54.17
Neutral
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 196 is below the 20-day moving average (MA) of 202.40, below the 50-day MA of 204.50, and above the 200-day MA of 182.68, indicating a neutral trend. The MACD of -2.10 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | £212.32M | 10.59 | 29.66% | 2.08% | 43.98% | 97.22% | |
74 Outperform | £417.34M | 12.21 | 21.75% | 5.56% | 9.35% | 20.14% | |
69 Neutral | £1.61B | 8.63 | 6.41% | 2.89% | 2.96% | 9.30% | |
69 Neutral | £765.77M | 15.97 | 15.81% | 1.53% | 5.39% | -3.64% | |
68 Neutral | £3.92B | 19.30 | 6.73% | 4.13% | -0.06% | -13.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £342.47M | 41.25 | 5.95% | 0.55% | 9.27% | 12.91% |
* Consumer Cyclical Sector Average
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The Gym Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
The Gym Group Posts Strong H1 2026 Results and Accelerates Expansion
Positive
Sep 9, 2026
The 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 ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
The Gym Group Cancels Shares After Targeted Buyback
Positive
Sep 7, 2026
The 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 t...
Regulatory Filings and Compliance
The Gym Group Confirms Total Voting Share Capital
Neutral
Sep 1, 2026
The 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 Author...
Business Operations and StrategyDelistings and Listing Changes
The Gym Group Adds Further Shares to London Listing
Neutral
Sep 1, 2026
The 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 ...
Stock BuybackRegulatory Filings and Compliance
The Gym Group cancels 90,835 shares after buyback
Positive
Sep 1, 2026
The 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 shar...
Stock BuybackRegulatory Filings and Compliance
The Gym Group Tightens Share Base With Targeted Buyback
Positive
Aug 24, 2026
The 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...
Business Operations and StrategyStock Buyback
The Gym Group Cancels 176,729 Shares After Buyback
Positive
Aug 17, 2026
The 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 o...
Stock BuybackRegulatory Filings and Compliance
The Gym Group Cancels 150,224 Shares After Buyback
Positive
Aug 10, 2026
The 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,...
Regulatory Filings and Compliance
The Gym Group Updates Total Voting Rights to 177.4 Million Shares
Neutral
Aug 3, 2026
The 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 th...
Stock BuybackRegulatory Filings and Compliance
The Gym Group cancels 177,507 shares after buyback
Positive
Aug 3, 2026
The 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 repurc...
Private Placements and FinancingRegulatory Filings and Compliance
The Gym Group Admits Additional Shares to London Market
Neutral
Aug 3, 2026
The 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’...
Business Operations and StrategyStock Buyback
The Gym Group Cancels Share Buyback Stock to Tighten Equity Base
Positive
Jul 27, 2026
The 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...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
The Gym Group Tightens Share Count With Targeted Buyback
Positive
Jul 20, 2026
The 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...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
The Gym Group Lifts Revenue and Funding as Expansion Accelerates
Positive
Jul 8, 2026
The 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...
Business Operations and StrategyExecutive/Board Changes
The Gym Group Director Takes New Non-Executive Role at Funding Circle
Positive
Jul 3, 2026
The Gym Group Plc operates in the U.K. fitness industry, running a chain of low-cost gyms aimed at budget-conscious consumers seeking flexible, no-frills membership options. The company focuses on accessible locations and value-based services, pos...
Regulatory Filings and Compliance
The Gym Group Confirms Total Voting Rights at 177.7 Million Shares
Neutral
Jul 1, 2026
The Gym Group plc has reported that its issued share capital now comprises 177,696,518 ordinary shares of £0.0001 each, with none held in treasury. This sets the total number of voting shares at 177,696,518, establishing the official denomina...
Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing
The Gym Group Expands Share Capital with Additional LSE Admission
Neutral
Jul 1, 2026
The Gym Group plc has increased its issued share capital by admitting 47,144 additional ordinary shares of £0.0001 each to trading on the London Stock Exchange’s Main Market. Following this admission, which was carried out under an exis...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.