Key insights
- An analyst expresses a bullish outlook on Life Time Group Holdings ($LTH), citing strong growth metrics, a share repurchase program, and potential valuation upside compared to Planet Fitness ($PLNT). The analyst highlights increasing revenue, net income, and shareholder equity, along with expansion plans and rising customer spend. The analyst has also disclosed opening a position in $LTH.
I finally did it, I found what I would consider a real value stock. This is the first company I have found where I can see a clear path to a 3-5x return. The company is Life Time Group Holdings ($LTH). It is a high-end health and fitness club that should thrive in the K-shaped economy.
Here's a quick summary:
4/6/2026 Market Cap: 6.20B P/E ratio: 16.76 Forward P/E 14.16
Revenue:
2023 2.22B
2024 2.62B
2025 3.00B
Net Cash Flow from Operations
2023 463.0 million
2024 575.12 million
2025 870.52 million
Net Income:
2023 76.06 million
2024 156.24 million
2025 373.67 million
Profit Margin:
2023- 3%
2024- 6%
2025- 12%
Shareholder Equity:
2023 2.25B
2024 2.61B
2025 3.13B
They currently operate over 180 locations in the United States and plan on opening 12-14 new locations in 2026 and 12-14 more in 2027.*
30% of their locations have a waitlist to join.
Average annual customer spend has increased from $2,810 in 2023 to $3,351 in 2025.
Comparable center growth is expected to be 6-7%.
Recently announced a $500 million share repurchase program representing about 9% of outstanding shares at the current market cap.
The founder is still CEO and holds approx 10% of outstanding shares. Insiders hold a total of 15%.
PLNT is another health and fitness company that has been experiencing similar growth to LTH over the last 5 years, it trades at a P/E multiple of 28! That's a potential 60% increase just from valuation parity.
I have to disclose that I did open a position in $LTH today at $27.50.
If you have any comments or questions please let me know.
* 2026 earnings will be affected by 6-7 locations opening in Q4 2026. ($1.61-$1.64 '26 est. vs. 1.66 '25)