Last Updated: 18 Sep 2024
Executive Summary
Life Time Group Holdings Inc. (LTH) is a publicly traded company that operates health and fitness clubs in the United States and Canada. The company has a strong financial position with a market capitalization of $5.03 billion and an EBITDA of $565.6 million. LTH's stock price has been on a steady upward trend in recent years, and it currently trades at $24.47 per share. The company's fundamentals are strong, with a trailing PE ratio of 46.17 and a forward PE ratio of 29.5. Technical analysis indicates that LTH's stock is in a bullish trend, and the analysts have a strong buy rating on the stock.
Company Overview
Life Time Group Holdings Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota. The company operates over 150 health and fitness clubs in the United States and Canada. LTH's clubs offer a variety of amenities, including fitness equipment, swimming pools, basketball courts, and yoga studios. The company also offers personal training and group fitness classes.
Fundamental Analysis
LTH's financial performance has been strong in recent years. The company's revenue has grown from $1.9 billion in 2019 to $2.4 billion in 2023. LTH's net income has also grown significantly, from $142.9 million in 2019 to $252.1 million in 2023. The company's EBITDA margin has also improved in recent years, from 12.2% in 2019 to 14.6% in 2023.
LTH's balance sheet is also strong. The company has a low level of debt and a high level of cash on hand. LTH's current ratio is 1.5, which indicates that the company has enough liquidity to meet its short-term obligations.
Technical Analysis
LTH's stock price has been on a steady upward trend in recent years. The stock price has broken out of a resistance level at $23.50 and is now trading at $24.47. The stock's moving averages are also bullish, with the 50-day moving average at $22.45 and the 200-day moving average at $16.86.
The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes. The RSI is currently at 65, which indicates that LTH's stock is overbought. However, the RSI is still below the overbought level of 70, which indicates that LTH's stock is not yet in a bubble.
Short Term Outlook
The short-term outlook for LTH's stock is bullish. The stock price is in a bullish trend, and the technical indicators are positive. LTH's stock is expected to continue to rise in the short term.
Long Term Outlook
The long-term outlook for LTH's stock is also bullish. The company has a strong financial position and a growing business. LTH is expected to continue to grow its revenue and earnings in the long term. The company's stock price is expected to continue to rise in the long term.
Analyst Recommendations
The analysts have a strong buy rating on LTH's stock. The analysts believe that LTH's stock is undervalued and that the company has the potential to continue to grow its business. The analysts have a target price of $26.41 for LTH's stock.
