Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
The Gym Group plc is a United Kingdom-based provider of high-quality, low-cost gym facilities, operating as a carbon-neutral chain with 24/7 access and flexible, no-contract memberships. Founded in 2007 by John Treharne with its first location in Hounslow, West London, the company has expanded to over 230 sites across the UK, serving approximately 850,000 members through subsidiaries like The Gym Group Operations Limited. Key features include a gym member app for online workouts, personal training bookings, multi-gym access, fitness tracking, on-demand classes, and refillable sports water options, all available for additional fees. The Gym Group plc emphasizes affordability starting from £14.99 monthly with a £10 joining fee, top-tier equipment, free classes in lifting, cardio, and yoga, and a mission to break down barriers to fitness for all. Headquartered in London, it plays a significant role in the leisure and recreation sector by delivering value-driven health and fitness services exclusively within the UK market.
£2.15
+£0.01 (+0.47%)
EOD Jul 3, 2026
12.62% operating margin is respectable but not wide. ROIC at 5.70%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 8.2%, steady but not accelerating.
At 54x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of £407M represents 8.0x FCF, leverage limits flexibility.
53.8x earnings, 7.4x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£245M
▲ +8.2% YoY
Net Income (TTM)
£7M
▲ +68.2% YoY
Op. Margin
12.62%
▲ +2.1pp YoY
ROIC
5.70%
▲ +1.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
£51M
▼ -7.3% YoY
Op. Cash Flow (TTM)
£92M
▲ +4.7% YoY
Net Debt
£407M
Cash & Equiv.
£3M
3Y CAGR: +12.3%
3Y CAGR: +33.0%
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At a P/E of 53.8 and a price-to-free-cash-flow of 7.4, Gym Group (GYM.XLON) trades below a two-stage DCF intrinsic value of about £12.34 per share, so at £2.15 the stock looks undervalued (474.1% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Gym Group scores 72/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £12.34 per share for GYM.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £9.26. At today's £2.15, that puts the stock about 474.1% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Gym Group scores 72 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 12.6% operating margin and a 5.7% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. GYM.XLON currently trades below its estimated intrinsic value and scores 72/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.