Peloton Interactive, Inc.
Peloton Interactive, Inc. Fundamental Analysis
Peloton Interactive, Inc. (PTON) shows moderate financial fundamentals with a PE ratio of -33.77, profit margin of -2.09%, and ROE of 12.90%. The company generates $2.4B in annual revenue with weak year-over-year growth of -7.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 106.0/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze PTON's fundamental strength across five key dimensions:
Efficiency Score
WeakPTON struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPTON trades at attractive valuation levels.
Growth Score
ModeratePTON shows steady but slowing expansion.
Financial Health Score
ExcellentPTON maintains a strong and stable balance sheet.
Profitability Score
WeakPTON struggles to sustain strong margins.
Key Financial Metrics
Is PTON Expensive or Cheap?
P/E Ratio
PTON trades at -33.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PTON's PEG of -0.61 indicates potential undervaluation.
Price to Book
The market values Peloton Interactive, Inc. at -5.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.20 times EBITDA. This is generally considered low.
How Well Does PTON Make Money?
Net Profit Margin
For every $100 in sales, Peloton Interactive, Inc. keeps $-2.09 as profit after all expenses.
Operating Margin
Core operations generate 2.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.90 in profit for every $100 of shareholder equity.
ROA
Peloton Interactive, Inc. generates $-2.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Peloton Interactive, Inc. produces operating cash flow of $351.12M, showing steady but balanced cash generation.
Free Cash Flow
Peloton Interactive, Inc. generates strong free cash flow of $339.14M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.83 in free cash annually.
FCF Yield
PTON converts 20.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-33.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
-5.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-7.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How PTON Stacks Against Its Sector Peers
| Metric | PTON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -33.77 | 24.85 | Better (Cheaper) |
| ROE | 12.90% | 1165.00% | Weak |
| Net Margin | -2.09% | 752.00% | Weak |
| Debt/Equity | -7.12 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 1.98 | 9.23 | Neutral |
| ROA | -2.35% | 1280.00% | Weak |
PTON outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Peloton Interactive, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-22.72%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
5.93%
Industry Style: Cyclical, Growth, Discretionary
GrowingFCF CAGR
-49.88%
Industry Style: Cyclical, Growth, Discretionary
Declining