Life Time Group Holdings, Inc.
Life Time Group Holdings, Inc. Fundamental Analysis
Life Time Group Holdings, Inc. (LTH) shows moderate financial fundamentals with a PE ratio of 21.56, profit margin of 9.88%, and ROE of 10.28%. The company generates $2.9B in annual revenue with strong year-over-year growth of 18.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LTH's fundamental strength across five key dimensions:
Efficiency Score
WeakLTH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLTH trades at attractive valuation levels.
Growth Score
ExcellentLTH delivers strong and consistent growth momentum.
Financial Health Score
WeakLTH carries high financial risk with limited liquidity.
Profitability Score
WeakLTH struggles to sustain strong margins.
Key Financial Metrics
Is LTH Expensive or Cheap?
P/E Ratio
LTH trades at 21.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LTH's PEG of 0.85 indicates potential undervaluation.
Price to Book
The market values Life Time Group Holdings, Inc. at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.12 times EBITDA. This is generally considered low.
How Well Does LTH Make Money?
Net Profit Margin
For every $100 in sales, Life Time Group Holdings, Inc. keeps $9.88 as profit after all expenses.
Operating Margin
Core operations generate 15.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.28 in profit for every $100 of shareholder equity.
ROA
Life Time Group Holdings, Inc. generates $3.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Life Time Group Holdings, Inc. generates strong operating cash flow of $795.43M, reflecting robust business health.
Free Cash Flow
Life Time Group Holdings, Inc. generates weak or negative free cash flow of $70.65M, restricting financial flexibility.
FCF Per Share
Each share generates $0.32 in free cash annually.
FCF Yield
LTH converts 1.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.85
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How LTH Stacks Against Its Sector Peers
| Metric | LTH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.56 | 24.85 | Better (Cheaper) |
| ROE | 10.28% | 1165.00% | Weak |
| Net Margin | 9.88% | 752.00% | Weak |
| Debt/Equity | 1.38 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.67 | 9.23 | Weak Liquidity |
| ROA | 3.68% | 1280.00% | Weak |
LTH outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Life Time Group Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.97%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
394.14%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
52.25%
Industry Style: Cyclical, Growth, Discretionary
High Growth