Life Time Group Holdings, Inc. (LTH) stock analysis
Close on Nov 11, 2026Market cap $10.67BP/E 25.8Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed12 of 30 checks passed
Life Time passes 12 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 4/6
- Past performance
- 3/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $47.52 is below our fair value estimate of $52.28.
Revenue growing 10%+ a year
Revenue grew 18.0% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 61.0% of total debt.
P/E below its 5-year median
Life Time's P/E of 25.8 is below its own 5-year median of 35.2.
What to watch
Margin of safety under 20%
The price is 9.1% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 13.0% over the last twelve months and averaged -1.9% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 9.4%, below the 10% that usually covers the cost of capital.
High debt
Debt is 43.2% of shareholders' equity, above the 40% we consider low.
Valuation3/6
P/E below its 5-year median
Life Time's P/E of 25.8 is below its own 5-year median of 35.2.
P/E below the industry
Life Time's P/E of 25.8 is below the Miscellaneous Amusement and Recreation median of 35.3.
EV/EBITDA above its 5-year median
Life Time's EV/EBITDA of 13.2 is above its 5-year median of 11.3.
P/B above the industry
Life Time's price-to-book of 3.09 is above the Miscellaneous Amusement and Recreation median of 3.09.
Trading below fair value
The share price of $47.52 is below our fair value estimate of $52.28.
Margin of safety under 20%
The price is 9.1% below fair value, less than the 20% cushion we look for.
Growth4/6
Revenue growing 10%+ a year
Revenue grew 18.0% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 13.0% over the last twelve months; the Miscellaneous Amusement and Recreation median is 9.8%.
Guidance raised
Life Time raised its Year Ending December 31, 2026 Total revenue outlook on Oct 29, 2026.
Gross margin improving
Gross margin was 47.9% over the last twelve months, against 47.4% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 13.0% over the last twelve months and averaged -1.9% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 9.4%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Life Time's return on equity of 13.0% is above the Miscellaneous Amusement and Recreation median of 4.4%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 12.7% over the last twelve months, against a 5-year average of -4.4%.
Net margin above the industry
Life Time's net margin of 12.7% is above the Miscellaneous Amusement and Recreation median of 1.6%.
Financial health2/6
High debt
Debt is 43.2% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 153% five years ago to 43.2%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 61.0% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.73 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 1.86; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Life Time has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$52.28
The share price is 9% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 35.2× | 35.2× | 35.3× | $64.85 | 47% |
| EV/EBITDA | 11.9× | 11.3× | 12.4× | $42.05 | 41% |
| P/B | 2.5× | 1.8× | 3.1× | $37.78 | 12% |
| Earnings powerleft out, too far from the others | 12.6% cost of equity | – | – | $12.86 | – |
| Fair value | $52.28 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 35.2
- Miscellaneous Amusement and Recreation median 35.3
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $145.83M
- Value traded per 1% price move
- $94.82M
Downside
Low risk
- Typical loss in a bad month
- 12.2%
- Volatility (annualized)
- 38%
- Sharpe ratio, 1 year
- 2.28
- Beta to the S&P 500 (5Y)
- 1.55
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +14.3% | +18.0% | +25.9% | – | |
| Gross profit | +16.1% | – | – | – | |
| Operating income | +34.6% | +63.3% | – | – | |
| Net income | +139.2% | – | – | – | |
| EPS, diluted | +124.3% | – | – | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -22.3% | 13.0% | |
| Return on assets | – | – | 4.9% | |
| Current ratio | – | 0.37 | 0.63 | |
| Debt to equity | – | 1.53 | 0.48 | |
| Net debt to EBITDA | – | -20.09× | 1.68× | |
| Inventory turnover | – | – | 24.5× | |
| Capex to revenue | – | 28.0% | 29.8% | |
| Diluted shares | – | 145M | 225M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Life Time generated $2.13B from operations and spent $3.03B on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 12.5% | 0.40× | 2.64× | 13.0% |
| FY2024 | 6.0% | 0.37× | 2.92× | 6.4% |
| FY2023 | 3.4% | 0.32× | 3.12× | 3.5% |
| FY2022 | -0.1% | 0.28× | 3.06× | -0.1% |
| FY2021 | -44.0% | 0.21× | 3.44× | -32.4% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$373.67M
- Cash generatingOperating cash flow above zero$870.53M
- Return on assets improvedROA up on the prior year2.2% → 5.2%
- Earnings backed by cashOperating cash flow above net income$870.53M vs $373.67M
- Less leverageLong-term debt to assets fell21.2% → 18.6%
- Better liquidityCurrent ratio rose0.33 → 0.63
- No dilutionShare count did not rise211M → 225M
- Gross margin improvedGross margin up on the prior year46.87% → 47.63%
- More efficientAsset turnover rose0.37 → 0.42
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