We assign a fundamental rating of 4 out of 10 to LTH. LTH was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While LTH is still in line with the averages on profitability rating, there are concerns on its financial health. LTH is not overvalued while it is showing excellent growth. This is an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

LTH had positive earnings in the past year.
LTH had a positive operating cash flow in the past year.
In multiple years LTH reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: LTH reported negative operating cash flow in multiple years.

1.2 Ratios

LTH has a Return On Assets (3.68%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.64%, LTH is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
LTH has a Return On Invested Capital (4.72%) which is in line with its industry peers.
LTH had an Average Return On Invested Capital over the past 3 years of 2.87%. This is significantly below the industry average of 10.34%.
The last Return On Invested Capital (4.72%) for LTH is above the 3 year average (2.87%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	3.68%
ROE	9.64%
ROIC	4.72%

ROA(3y)1.08%

ROA(5y)-2.4%

ROE(3y)3.09%

ROE(5y)-8.55%

ROIC(3y)2.87%

ROIC(5y)N/A

1.3 Margins

LTH has a better Profit Margin (9.88%) than 73.68% of its industry peers.
LTH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 15.06%, LTH is doing good in the industry, outperforming 68.42% of the companies in the same industry.
LTH's Operating Margin has improved in the last couple of years.
LTH's Gross Margin of 47.38% is in line compared to the rest of the industry. LTH outperforms 51.13% of its industry peers.
In the last couple of years the Gross Margin of LTH has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	15.06%
PM (TTM)	9.88%
GM	47.38%

OM growth 3YN/A

OM growth 5Y9.18%

PM growth 3YN/A

PM growth 5Y30.44%

GM growth 3Y9.24%

GM growth 5Y0.72%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LTH is destroying value.
Compared to 1 year ago, LTH has more shares outstanding
LTH has more shares outstanding than it did 5 years ago.
LTH has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.28, we must say that LTH is in the distress zone and has some risk of bankruptcy.
LTH has a worse Altman-Z score (1.28) than 60.15% of its industry peers.
LTH has a debt to FCF ratio of 21.46. This is a negative value and a sign of low solvency as LTH would need 21.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 21.46, LTH is in line with its industry, outperforming 46.62% of the companies in the same industry.
LTH has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
LTH has a Debt to Equity ratio of 0.50. This is in the better half of the industry: LTH outperforms 66.92% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.5
Debt/FCF	21.46
Altman-Z	1.28

ROIC/WACC0.56

WACC8.38%

2.3 Liquidity

A Current Ratio of 0.67 indicates that LTH may have some problems paying its short term obligations.
The Current ratio of LTH (0.67) is worse than 66.92% of its industry peers.
LTH has a Quick Ratio of 0.67. This is a bad value and indicates that LTH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.55, LTH is doing worse than 69.17% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.67
Quick Ratio	0.55

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 71.83% over the past year.
Measured over the past years, LTH shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.83% on average per year.
Looking at the last year, LTH shows a quite strong growth in Revenue. The Revenue has grown by 15.77% in the last year.
The Revenue has been growing slightly by 6.64% on average over the past years.

EPS 1Y (TTM)71.83%

EPS 3YN/A

EPS 5Y35.83%

EPS Q2Q%114.29%

Revenue 1Y (TTM)15.77%

Revenue growth 3Y25.75%

Revenue growth 5Y6.64%

Sales Q2Q%12.9%

3.2 Future

Based on estimates for the next years, LTH will show a very strong growth in Earnings Per Share. The EPS will grow by 33.22% on average per year.
LTH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.21% yearly.

EPS Next Y82.9%

EPS Next 2Y41.45%

EPS Next 3Y33.04%

EPS Next 5Y33.22%

Revenue Next Year14.16%

Revenue Next 2Y12.52%

Revenue Next 3Y12.27%

Revenue Next 5Y11.21%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 24.34, which indicates a rather expensive current valuation of LTH.
Based on the Price/Earnings ratio, LTH is valued a bit cheaper than 62.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. LTH is around the same levels.
With a Price/Forward Earnings ratio of 19.53, LTH is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LTH is valued a bit cheaper than the industry average as 63.91% of the companies are valued more expensively.
LTH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	24.34
Fwd PE	19.53

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LTH is valued a bit cheaper than the industry average as 61.65% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as LTH.

		Industry Rank	Sector Rank
P/FCF	92.89
EV/EBITDA	10.52

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LTH's earnings are expected to grow with 33.04% in the coming years.

PEG (NY)0.29

PEG (5Y)0.68

EPS Next 2Y41.45%

EPS Next 3Y33.04%

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5. Dividend

5.1 Amount

No dividends for LTH!.

		Industry Rank	Sector Rank
Dividend Yield	0%

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LIFE TIME GROUP HOLDINGS INC / LTH FAQ

Can you provide the ChartMill fundamental rating for LIFE TIME GROUP HOLDINGS INC?

ChartMill assigns a fundamental rating of 4 / 10 to LTH.

Can you provide the valuation status for LIFE TIME GROUP HOLDINGS INC?

ChartMill assigns a valuation rating of 5 / 10 to LIFE TIME GROUP HOLDINGS INC (LTH). This can be considered as Fairly Valued.

Can you provide the profitability details for LIFE TIME GROUP HOLDINGS INC?

LIFE TIME GROUP HOLDINGS INC (LTH) has a profitability rating of 5 / 10.

What are the PE and PB ratios of LIFE TIME GROUP HOLDINGS INC (LTH) stock?

The Price/Earnings (PE) ratio for LIFE TIME GROUP HOLDINGS INC (LTH) is 24.34 and the Price/Book (PB) ratio is 2.19.

What is the expected EPS growth for LIFE TIME GROUP HOLDINGS INC (LTH) stock?

The Earnings per Share (EPS) of LIFE TIME GROUP HOLDINGS INC (LTH) is expected to grow by 82.9% in the next year.