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

Today's episode is sponsored by: Fundamental Edge

You’ve probably heard it’s an “apprenticeship” system, or that you’ll “learn by osmosis”? But what if there was a better way to learn the equity analyst job? Fundamental Edge is re-defining training on the buy-side. Use the code "10YAVP" for a 10% discount. Website: https://www.fundamentedge.com/

Whether you’re already in the seat or looking to break in, the Analyst Academy from Fundamental Edge offers a thorough and flexible path to developing the tools and frameworks employed by leading hedge funds. Breaking in: https://www.fundamentedge.com/breaking-in

Check out the Academy syllabus and sign up for future free content: https://fundamental-edge.ck.page/academyinfo

Oxy Capital's Pedro Sousa thesis on high quality, low cost gym facilities in the UK $GYM.L

Yet Another Value Podcast