Life Time Group HoldingsLTH +2.75%82 Gross Margin % is 48.43% as of Mar. 2026, which is 7% above its 10-year median of 45.44. GuruFocus rates LTH with a GF Score™ of 82/100 and a GF Value™ of $27.87 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 793 Travel & Leisure companies, Life Time Group Holdings ranks better than 55.86% on this metric.
Life Time Group Holdings (NYSE:LTH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Life Time Group Holdings had a gross margin of 48.43% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Life Time Group Holdings Gross Margin % Related Terms
Life Time Group Holdings Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Leisure subindustry, Life Time Group Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Life Time Group Holdings Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Life Time Group Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Life Time Group Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Life Time Group Holdings (LTH) has a Gross Margin % of 48.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Life Time Group Holdings and its competitors. This is near median its historical median of 45.44. Over the past decade, Life Time Group Holdings' Gross Margin % has ranged from 30.40 to 47.88. According to the industry distribution chart, Life Time Group Holdings ranks #350 out of 793 companies in the Travel & Leisure industry, placing it in the top 44.1%.
Is Life Time Group Holdings' Gross Margin % too high?
Life Time Group Holdings' current Gross Margin % of 48.43% is near median its 10-year median of 45.44. Over the past 10 years, this metric has ranged from a low of 30.40 to a high of 47.88. The Travel & Leisure industry median Gross Margin % is 44.02. Life Time Group Holdings' value of 48.43% is 10% above this industry median. Based on the distribution chart, Life Time Group Holdings ranks #350 out of 793 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Life Time Group Holdings has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Life Time Group Holdings' Gross Margin % compare to GOLF and MAT?
According to the Travel & Leisure industry distribution chart, Life Time Group Holdings ranks #350 out of 793 companies for Gross Margin %. This puts Life Time Group Holdings in the upper half of its industry. The industry median Gross Margin % is 44.02. Life Time Group Holdings' value of 48.43% is 10% above this benchmark. Historically, Life Time Group Holdings' own Gross Margin % has ranged from 30.40 to 47.88 over the past decade. While the company's 10-year median is 45.44 vs. the industry median of 44.02, Life Time Group Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Life Time Group Holdings's current Gross Margin % of 48.43% is 10% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Life Time Group Holdings and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life Time Group Holdings's current Gross Margin % is 48.43%, which is near median its own 10-year median of 45.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Time Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Life Time Group Holdings (LTH) is currently considered Significantly Overvalued. The stock's GF Value™ is $27.87, compared to a current price of $38.87 — trading 39.5% above its estimated fair value. The current Gross Margin % is 48.43%, which is near median its 10-year median of 45.44 and 10% above the Travel & Leisure industry median of 44.02. Life Time Group Holdings' overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Life Time Group Holdings (LTH), the current Gross Margin % is 48.43% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Life Time Group Holdings (LTH) Overvalued in 2026?
Based on GuruFocus' analysis, Life Time Group Holdings stock appears to be overvalued.
The current stock price of $38.87 is trading 39.5% above its estimated GF Value™ of $27.87.
GuruFocus considers Life Time Group Holdings to be Significantly Overvalued.
Key valuation signals for LTH:
Gross Margin %: 48.43% (near median its 10-year median of 45.44)
GF Value™: $27.87 vs. price of $38.87 (39.5% above fair value)
Industry Position: 10% above the Travel & Leisure median (#350 of 793)
No single metric tells the full story. See the LTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Life Time Group Holdings Inc is a lifestyle and leisure brand offering health, fitness, and wellness experiences to a community. It is engaged in designing, building, and operating distinctive and large, multi-use sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in residential locations of metropolitan areas in the United States and Canada.
82GF Score
Get the complete analysis for LTH
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTH has been successfully added to your 
