The Gym (GYM) AI Stock Analysis

• Market Cap: £265.78M
• Dividend Yield: N/A
• Average Volume (3M): 194.32K
• Price to Earnings (P/E): 35.4
• Beta (1Y): 0.41
• 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: 179,353,180
• 10 Day Avg. Volume: 149,665
• 30 Day Avg. Volume: 194,316
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £179.43
• Price Target Upside: 18.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Neutral
• Price Target: 161.00p ▲(6.76% Upside)

The Gym's strong financial recovery and positive earnings call sentiment are the most significant factors driving the score. However, high leverage and valuation concerns, along with neutral technical indicators, moderate the overall outlook.

Positive Factors

Revenue Growth

The Gym's consistent revenue growth indicates strong market demand and effective business strategies, enhancing its competitive position.

Debt Reduction

Reducing debt levels improves financial stability and flexibility, enabling The Gym to invest in growth opportunities and withstand economic fluctuations.

Market Trends

Positive market trends and increased consumer engagement suggest a growing customer base, supporting long-term revenue and membership growth.

Negative Factors

High Leverage

High leverage poses risks to financial health, potentially limiting The Gym's ability to invest in growth and manage economic downturns effectively.

Central Costs Growth

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

Inflationary Pressures

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

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 10.98% revenue increase and improved profitability. However, high leverage and debt levels pose risks, requiring 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	226.30M	204.00M	172.90M	106.00M	80.47M
Gross Profit	223.40M	201.20M	111.40M	51.60M	29.42M
EBITDA	83.40M	70.80M	56.20M	25.10M	16.29M
Net Income	4.40M	-8.40M	-19.30M	-35.40M	-36.37M
Balance Sheet
Total Assets	585.60M	571.50M	595.60M	564.70M	532.49M
Cash, Cash Equivalents and Short-Term Investments	3.00M	1.50M	5.40M	7.30M	3.74M
Total Debt	401.80M	398.10M	420.40M	380.60M	355.50M
Total Liabilities	454.00M	443.50M	461.60M	412.60M	378.04M
Stockholders Equity	131.60M	128.00M	134.00M	152.10M	154.44M
Cash Flow
Free Cash Flow	55.10M	55.80M	19.40M	11.40M	-15.79M
Operating Cash Flow	95.10M	79.50M	63.10M	37.10M	13.46M
Investing Cash Flow	-39.50M	-23.40M	-48.70M	-25.70M	-30.21M
Financing Cash Flow	-54.10M	-60.00M	-16.30M	-7.80M	17.89M

The Gym Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 150.80
• 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 GB:GYM, the sentiment is Positive. The current price of 150.8 is above the 20-day moving average (MA) of 144.03, above the 50-day MA of 145.94, and above the 200-day MA of 143.23, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 58.57 is Neutral, neither overbought nor oversold. The STOCH value of 77.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GYM.

The Gym Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOWL	73 Outperform	421.39M	15.18	19.65%	4.82%	7.46%	-18.88%
GYM	70 Neutral	£265.78M	35.40	5.72%	―	8.74%	―
YNGN	64 Neutral	452.64M	36.38	1.27%	4.02%	24.95%	-16.86%
JDW	64 Neutral	738.04M	13.27	0.00%	2.16%	3.70%	57.10%
YNGA	63 Neutral	452.64M	52.41	1.27%	2.79%	24.95%	-16.86%
AO	59 Neutral	563.80M	54.15	7.27%	―	9.45%	-57.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

The Gym Corporate Events

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.

Goldman Sachs Increases Stake in The Gym Group

The Gym Group PLC has announced a significant change in its shareholder structure, with The Goldman Sachs Group, Inc. acquiring a substantial voting interest. As of July 17, 2025, Goldman Sachs holds a 10.685137% voting interest in The Gym Group, marking a notable increase from their previous position. This shift in ownership could influence the company’s strategic direction and potentially impact its market positioning, given Goldman Sachs’ substantial influence and resources.

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.