Town Sports International Holdings, Inc. (CLUB) Company Bio
Town Sports International Holdings, Inc. owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company was founded in 1973 and is based in New York, New York.
CLUB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Town Sports International Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Town Sports International Holdings Inc ranked in the 99th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 26815.5%; returns of such proportions should be viewed with some skepticism, though. In terms of the factors that were most noteworthy in this DCF analysis for CLUB, they are:
As a business, CLUB is generating more cash flow than just 18.88% of positive cash flow stocks in the Consumer Cyclical.
1% of the company's capital comes from equity, which is greater than merely 0.84% of stocks in our cash flow based forecasting set.
Town Sports International Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.41. This coverage rate is greater than that of merely 22.78% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CLUB, try HMC, SBSAA, BWMX, MSC, and BGFV.
Town Sports International Holdings, Inc. ("TSI" or the "Company") (NASDAQ:CLUB) received a notice on July 7, 2020 from the Listing Qualifications Department of Nasdaq indicating that as a result of the Company’s failure to timely file its Quarterly Report on Form 10-Q for the period ended March 31, 2020 (the "Report"), the Company no longer complies with the continued listing requirements as set forth in Nasdaq Listing Rule 5250(c)(1). The notice has no immediate impact on the listing of the Company’s common stock, which will continue to trade on the Nasdaq Global Market, subject to the Company’s compliance with other applicable continued listing requirements.
Due to the impact of the pandemic, Town Club Sports International (CLUB) says it will take a material impairment charge of the carrying values of the company's right of use assets, fixed assets and other long term assets including goodwill. The company estimates the charge will be around $135M to...
Gym stocks were among some of the biggest winners in the novel coronavirus pandemic. As more Americans were faced with months away from their local fitness centers, all of a sudden the cardio-obsessed Peloton (NASDAQ:PTON) wife didn't look nearly so crazy.However, it seems the bug really never went away. A consistent theme on my social media timeline was the desire of Americans to get back to the gym. It exceeded the cries of people who wanted, or needed, a haircut. It stands a bit in contrast to the statistic from the International Health, Racquet & Sportsclub Association (IHRSA) that approximately 28% of gym members are expected to cancel their memberships.However, in 2018, the IRHSA reported that the fitness industry was worth $94 billion. And the number of health club members cl...
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Town Sports International, LLC and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Town Sports International (CLUB) is down sharply in early trading after reporting that the board is actively considering strategic alternatives to raise capital. A bankruptcy filing is disclosed to be one of the options on the table. Town Sports faces a heavy debt load in the year ahead and says...