Planet Fitness, Inc.
Planet Fitness, Inc. Fundamental Analysis
Planet Fitness, Inc. (PLNT) shows moderate financial fundamentals with a PE ratio of 36.88, profit margin of 15.97%, and ROE of -1.04%. The company generates $1.3B in annual revenue with strong year-over-year growth of 10.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
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 36.88 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PLNT's PEG of 4.15 indicates potential overvaluation.
Price to Book
The market values Planet Fitness, Inc. at -38.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.67 times EBITDA. This is generally considered low.
How Well Does PLNT Make Money?
Net Profit Margin
For every $100 in sales, Planet Fitness, Inc. keeps $15.97 as profit after all expenses.
Operating Margin
Core operations generate 28.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.04 in profit for every $100 of shareholder equity.
ROA
Planet Fitness, Inc. generates $6.73 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 $361.57M, reflecting robust business health.
Free Cash Flow
Planet Fitness, Inc. generates strong free cash flow of $204.56M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.43 in free cash annually.
FCF Yield
PLNT converts 2.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
-38.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-13.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.04
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 | 36.88 | 25.25 | Worse (Expensive) |
| ROE | -104.37% | 1170.00% | Weak |
| Net Margin | 15.97% | 742.00% | Weak |
| Debt/Equity | -13.22 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.08 | 9.19 | Strong Liquidity |
| ROA | 6.73% | -6467.00% (disorted) | Weak |
PLNT outperforms its industry in 2 out of 6 key metrics, 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
66.25%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
41.66%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
63.11%
Industry Style: Cyclical, Growth, Discretionary
High Growth