Peloton Interactive, Inc. Fundamental Analysis (NASDAQ: PTON)
Peloton Interactive, Inc. (NASDAQ: PTON) shows weak financial fundamentals with a PE ratio of 106.95, profit margin of 0.95%, and ROE of -6.18%. The company generates $2.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.2/100 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 PTON's fundamental strength across five key dimensions:
Efficiency Score
WeakPTON struggles to generate sufficient returns from assets.
Valuation Score
ModeratePTON shows balanced valuation metrics.
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 106.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PTON's PEG of 0.23 indicates potential undervaluation.
Price to Book
The market values Peloton Interactive, Inc. at -6.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.70 times EBITDA. This signals the market has high growth expectations.
How Well Does PTON Make Money?
Net Profit Margin
For every $100 in sales, Peloton Interactive, Inc. keeps $0.95 as profit after all expenses.
Operating Margin
Core operations generate 5.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.18 in profit for every $100 of shareholder equity.
ROA
Peloton Interactive, Inc. generates $1.09 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 $409.87M, showing steady but balanced cash generation.
Free Cash Flow
Peloton Interactive, Inc. generates strong free cash flow of $397.68M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.95 in free cash annually.
FCF Yield
PTON converts 15.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
106.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
-6.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.06
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How PTON Stacks Against Its Sector Peers
| Metric | PTON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 106.95 | 26.38 | Worse (Expensive) |
| ROE | -6.18% | 892.00% | Weak |
| Net Margin | 0.95% | -2999.00% (disorted) | Weak |
| Debt/Equity | -2.49 | 0.63 | Strong (Low Leverage) |
| Current Ratio | 1.79 | 2.47 | Neutral |
| ROA | 1.09% | 2861.00% | Weak |
PTON outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
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
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary