Planet Fitness, Inc. Fundamental Analysis (NYSE: PLNT)
Planet Fitness, Inc. (NYSE: PLNT) shows moderate financial fundamentals with a PE ratio of 17.18, profit margin of 16.88%, and ROE of -53.58%. The company generates $1.5B 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 52.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
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
ExcellentPLNT trades at attractive valuation levels.
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 17.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PLNT's PEG of 0.55 indicates potential undervaluation.
Price to Book
The market values Planet Fitness, Inc. at -6.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.22 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 $16.88 as profit after all expenses.
Operating Margin
Core operations generate 30.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-53.58 in profit for every $100 of shareholder equity.
ROA
Planet Fitness, Inc. generates $7.92 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 $447.57M, reflecting robust business health.
Free Cash Flow
Planet Fitness, Inc. generates strong free cash flow of $269.88M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.40 in free cash annually.
FCF Yield
PLNT converts 6.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
-6.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-4.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.54
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How PLNT Stacks Against Its Sector Peers
| Metric | PLNT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.18 | 27.16 | Better (Cheaper) |
| ROE | -53.58% | 951.00% | Weak |
| Net Margin | 16.88% | -4915.00% (disorted) | Strong |
| Debt/Equity | -4.82 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 1.58 | 2.33 | Neutral |
| ROA | 7.92% | 314.00% | Weak |
PLNT outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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