Pedro Sousa, Principal at Oxy Capital, joins the podcast to discuss his thesis on The Gym Group plc (LSE: GYM) - founded in 2007, the Gym Group is the original provider of high quality, low cost gym facilities in the UK.
For more information about Oxy Capital, please visit: https://oxycapital.com/homepage/
Chapters:
[0:00] Introduction + Episode sponsor: Fundamental Edge
[2:05] Overview of Gym Group $GYM.L and why it's interesting to Pedro
[9:09] Competitive analysis: Basic-Fit and PureGym
[18:00] Raising prices and margin expansion
[25:40] Replacement cost and margin of safety
[31:29] Discounting of membership in October 2022
[33:42] New CEO in Summer 2023
[37:29] Three-tier pricing membership
[41:14] Normalized earnings levels looks like and free cash flow
[53:18] EBITDA multiples
[56:35] Bear case on $GYM.L
[1:07:28] Final thoughts
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