Life Time Intrinsic Value Calculation – LIFE TIME Reports Record Earnings Results for Q2 of FY 2023
August 3, 2023
🌥️Earnings Overview
On July 25 2023, LIFE TIME ($NYSE:LTH) reported earnings results for the second quarter of fiscal year 2023, as of June 30 2023. Revenue totaled USD 561.7 million, representing a 21.8% increase from the same period in the previous year. Net income was reported at USD 17.0 million, contrasting with a net loss of -2.3 million in the prior year.
Price History
On Tuesday, LIFE TIME reported its earnings results for the second quarter of FY 2023. The company saw a record high in profits, with the stock opening at $21.0 and closing at $18.6, a plunge of 13.6% from the prior closing price of 21.5. This is the first time the company has seen a such a sharp decrease in its stock price in recent years. The earnings reports showed that LIFE TIME had a strong quarter with increased revenues and profits, but investors reacted poorly to the announcement due to an increased level of uncertainty in the market. Analysts suggest that while the numbers looked good, investors were concerned about LIFE TIME’s future prospects and the overall market performance.
Despite the sharp decline in stock prices, LIFE TIME remains optimistic about its future growth prospects and is confident that it can maintain its high level of profitability and performance going forward. The company has already announced plans to continue investing in new projects and initiatives, both domestically and abroad, which could help drive more growth and revenue in the coming quarters. Overall, LIFE TIME’s stock performance for Q2 of FY 2023 was disappointing, but investors are hopeful that the company can turn things around and continue to deliver strong returns going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Life Time. More…
| Total Revenues | Net Income | Net Margin |
| 2.04k | 82.92 | 4.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Life Time. More…
| Operations | Investing | Financing |
| 336.94 | -425.34 | 58.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Life Time. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.83k | 4.63k | 11.28 |
Key Ratios Snapshot
Some of the financial key ratios for Life Time are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.4% | -13.1% | 10.8% |
| FCF Margin | ROE | ROA |
| -16.6% | 6.3% | 2.0% |
Analysis – Life Time Intrinsic Value Calculation
GoodWhale has conducted an analysis of LIFE TIME‘s financials to make an estimation of its intrinsic value. After running our proprietary Valuation Line, we have determined that the intrinsic value of LIFE TIME share is approximately $18.7. This suggests that LIFE TIME stock is neither undervalued nor overvalued. More…
Peers
In the fitness industry, there is intense competition between Life Time Group Holdings Inc and its competitors: F45 Training Holdings Inc, Cedar Fair LP, Fit After Fifty Inc. All of these companies are vying for a share of the market, and each has its own unique approach to fitness.
– F45 Training Holdings Inc ($NYSE:FXLV)
F45 Training Holdings Inc is a global fitness franchise that offers affordable and convenient fitness solutions for its members. The company operates through a network of franchised locations across the United States, Australia, New Zealand, Canada, the United Kingdom, and Asia. As of 2022, the company had a market cap of 300.2M and a ROE of -60.11%.
F45 Training Holdings Inc is a popular fitness franchise because it offers members affordable and convenient fitness solutions. The company has locations in the United States, Australia, New Zealand, Canada, the United Kingdom, and Asia.
– Cedar Fair LP ($NYSE:FUN)
Cedar Fair is a publicly traded partnership headquartered in Sandusky, Ohio. The company owns and operates eleven amusement parks, two outdoor water parks, one indoor water park, and five hotels. Cedar Fair also operates the Gilroy Gardens Family Theme Park in Gilroy, California under a management contract.
Cedar Fair’s revenue for 2021 was $1.32 billion, a decrease of $41 million from the previous year. The decrease was due to the COVID-19 pandemic, which caused the temporary closure of all of the company’s parks in 2020. Cedar Fair’s net income for 2021 was $164 million, a decrease of $41 million from the previous year.
Cedar Fair’s return on equity for 2021 was -24.98%, a decrease from the previous year’s return on equity of -20.21%. The decrease was due to the COVID-19 pandemic, which caused the temporary closure of all of the company’s parks in 2020.
Summary
Investors have reason to be cautious about the stock performance of LIFE TIME after the announcement of earnings results for the second quarter of 2023. Total revenue for the period increased by 21.8% compared to the same period in the prior year, while net income was reported at USD 17.0 million, up from a net loss of -2.3 million in the prior year. However, the stock price dropped on the same day, which indicates that investors remain uncertain about the company’s future prospects. It is important to look at other factors such as the competitive landscape, financial performance, and market trends before deciding whether or not to invest in LIFE TIME.
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