Planet Fitness, Inc.
Planet Fitness, Inc. Fundamental Analysis
Planet Fitness, Inc. (PLNT) shows moderate financial fundamentals with a PE ratio of 27.94, profit margin of 16.55%, and ROE of -82.94%. The company generates $1.3B in annual revenue with strong year-over-year growth of 12.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -14.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PLNT's fundamental strength across five key dimensions:
Efficiency Score
WeakPLNT struggles to generate sufficient returns from assets.
Valuation Score
WeakPLNT trades at a premium to fair value.
Growth Score
ExcellentPLNT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPLNT maintains a strong and stable balance sheet.
Profitability Score
ModeratePLNT maintains healthy but balanced margins.
Key Financial Metrics
Is PLNT Expensive or Cheap?
P/E Ratio
PLNT trades at 27.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PLNT's PEG of 4.03 indicates potential overvaluation.
Price to Book
The market values Planet Fitness, Inc. at -12.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.09 times EBITDA. This signals the market has high growth expectations.
How Well Does PLNT Make Money?
Net Profit Margin
For every $100 in sales, Planet Fitness, Inc. keeps $16.55 as profit after all expenses.
Operating Margin
Core operations generate 29.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-82.94 in profit for every $100 of shareholder equity.
ROA
Planet Fitness, Inc. generates $7.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Planet Fitness, Inc. generates strong operating cash flow of $400.86M, reflecting robust business health.
Free Cash Flow
Planet Fitness, Inc. generates strong free cash flow of $244.06M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.05 in free cash annually.
FCF Yield
PLNT converts 4.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
-12.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.83
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How PLNT Stacks Against Its Sector Peers
| Metric | PLNT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.94 | 23.78 | Worse (Expensive) |
| ROE | -82.94% | 1098.00% | Weak |
| Net Margin | 16.55% | -626.00% (disorted) | Strong |
| Debt/Equity | -0.92 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 2.11 | 2.64 | Strong Liquidity |
| ROA | 7.06% | -8081.00% (disorted) | Weak |
PLNT outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Planet Fitness, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
213.11%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1505.30%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
1192.02%
Industry Style: Cyclical, Growth, Discretionary
High Growth