Life Time Group Holdings LTH
United StatesConsumer Cyclical · LeisureUSD
56.07 USD (+38.4%)
14 analysts
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Life Time Group Holdings operates a network of premium health and lifestyle clubs in the United States and Canada, combining gyms, pools, coworking, and family spaces under a membership model.
Key points
from its scores- ✓Good share-price trend9.6
- ✓Strong growth8.1
- ✕Little or no dividend1.5
- ✕Fragile balance sheet3.3
- ✕Unfavourable risk and backdrop3.4
AI analysis
bottom line, main risk, context and newsSolid growth and positive momentum are offset by a highly leveraged balance sheet and sensitivity to rising interest rates; wait for an improvement in free cash flow generation (negative conversion of -40.69%) before adding to the position.
Life Time shows strong growth (revenue +13.7%, earnings +40.6%) and exceptional momentum (score 9.61), but its high leverage (Net Debt/EBITDA of 4.77x) and long-duration business make it vulnerable to the recent rise in US interest rates, which moderates its appeal despite a forward P/E of 19.84x.
The main risk is financial: with a Net Debt/EBITDA of 4.77x and negative free cash flow conversion (-40.69%), the company is highly sensitive to a prolonged high-interest-rate environment, which would make its debt more expensive and limit its investment capacity.
Context and risks
Life Time operates a high-end health and lifestyle club model with high leverage (Net Debt/EBITDA of 4.77x). The recent rise in long-term US interest rates (10-year Treasury at 5.28%) makes its debt service more expensive and pressures its long-duration valuation, although its luxury discretionary consumer business is not directly exposed to commodities or shipping routes.
Is Life Time Group Holdings stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 31% above the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 22.1 | 17.8 | +24% |
| EV / EBITDA | 15.4 | 11.2 | +37% |
| Price / book | 2.7 | 2.9 | −5% |
| Price / sales | 2.8 | 1.3 | +127% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.3 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 56.07 USD, +38.4% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.1 (sector 5.7), Growth 8.1 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 22.1
- Forward P/E
- 19.8
- EV / EBITDA
- 15.4
- Price / book
- 2.7
- Price / sales
- 2.8
- PEG
- 0.57
- Market cap
- 9.1B USD
- Enterprise value
- 13.1B USD
Profitability
- ROE
- 13.4%
- ROA
- 4.2%
- ROIC (approx.)
- 7.2%
- Gross margin
- 48.0%
- Operating margin
- 17.1%
- Net margin
- 13.0%
- Free cash flow
- −345.2M USD
- FCF yield
- −3.8%
- Cash conversion
- −41%
Solvency
- Total debt
- 4.3B USD
- Net debt
- 4.0B USD
- Cash
- 228.5M USD
- EBITDA
- 848.2M USD
- Net debt / EBITDA
- 4.77
- Debt / equity
- 129.48
- Current ratio
- 0.66
- Quick ratio
- 0.39
Growth
- Revenue growth
- +13.7%
- Earnings growth
- +40.6%
- EPS (TTM)
- 1.83 USD
- EPS (forward)
- 2.04 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.49
- Analyst consensus
- Strong buy (14)
- Target price
- 56.07 USD
- 52-week range
- 24.14 – 47.23
Recent news
All LTH news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Life Time Group Holdings
Is Life Time Group Holdings stock cheap or expensive?
On P/E and EV / EBITDA, it trades 31% above the Consumer Cyclical median on average. Valuation score: 5.3 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 56.07 USD, +38.4% versus the price. This is not investment advice.
What score does Life Time Group Holdings get on MeridIAn Screener?
It scores 5.0 out of 10, rank 1,702 of 2,130 (better than 19% of the companies analysed). Its strongest category is Momentum (9.6) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Life Time Group Holdings's P/E ratio?
Its P/E is 22.1: the share price equals 22.1 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 19.8.
How much is Life Time Group Holdings worth on the stock market?
Its market capitalisation is 9.1B USD and its enterprise value, debt included, is 13.1B USD.
How much debt does Life Time Group Holdings have?
Its net debt (debt minus cash) is 4.0B USD. That is 4.77 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Life Time Group Holdings pay a dividend?
It pays no dividend, or almost none.
How has Life Time Group Holdings stock performed over the last year?
It has risen 59.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 24.14 and 47.23 USD. Past performance does not guarantee future results.
What do analysts think of Life Time Group Holdings?
14 analysts cover it; their average recommendation is “Strong buy” and their average target is 56.07 USD (+38.4% versus the price). It is an estimate, not market data.