Basic-Fit (BFIT) Initiating Coverage
One of the highest potential multi-baggers in Europe
We have initiated a position in $BFIT.AMS, and as a standard disclaimer are noting that nothing written below represents investment advice. Please consult your fiduciary prior to making any investment decisions.
This post exceeds the word limit imposed by Substack for e-mails, so if you are receiving this in your inbox and are a paying subscriber please visit our website to read the full article.
We are now including comprehensive financial models to accompany our write-ups on individual securities. To access/download our financial model, please upgrade to a paid subscription (the link is located behind the paywall).
Introduction
Basic-Fit NV is a rapidly growing European business that has established itself as a leader in the low-cost fitness industry. The company’s innovative, tech-driven approach and disciplined cost structure have allowed it to dominate the market, offering an unmatched value proposition to consumers while delivering superior unit economics. With over 1,570 clubs and 4.2 million members as of late 2024, it has more than doubled its footprint since 2019, all while maintaining strong margins and robust returns on invested capital.
The business is benefiting from two key trends: the growing demand for affordable fitness options and the low market penetration of gym memberships in Europe, which creates significant room for expansion. As the share of its mature gyms grows, margins are set to improve further, fueling strong cash flow generation. Recent developments, including pricing adjustments, a shift toward higher-value memberships, and expansion into new markets, add further upside to the investment case.
Additionally, an activist investor has called for share buybacks, citing the company’s undervaluation relative to its earnings potential. With a low trading multiple and EBITDA expected to grow meaningfully over the coming years, this special situation presents a compelling opportunity for investors.