Xponential Fitness, Inc. Fundamental Analysis (NYSE: XPOF)
Xponential Fitness, Inc. (NYSE: XPOF) shows moderate financial fundamentals with a PE ratio of -3.34, profit margin of -13.45%, and ROE of 15.21%. The company generates $0.3B in annual revenue with weak year-over-year growth of -1.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze XPOF's fundamental strength across five key dimensions:
Efficiency Score
WeakXPOF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentXPOF trades at attractive valuation levels.
Growth Score
ModerateXPOF shows steady but slowing expansion.
Financial Health Score
ModerateXPOF shows balanced financial health with some risks.
Profitability Score
WeakXPOF struggles to sustain strong margins.
Key Financial Metrics
Is XPOF Expensive or Cheap?
P/E Ratio
XPOF trades at -3.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, XPOF's PEG of -0.20 indicates potential undervaluation.
Price to Book
The market values Xponential Fitness, Inc. at -0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -59.82 times EBITDA. This is generally considered low.
How Well Does XPOF Make Money?
Net Profit Margin
For every $100 in sales, Xponential Fitness, Inc. keeps $-13.45 as profit after all expenses.
Operating Margin
Core operations generate 21.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.21 in profit for every $100 of shareholder equity.
ROA
Xponential Fitness, Inc. generates $-12.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Xponential Fitness, Inc. generates limited operating cash flow of $-5.10M, signaling weaker underlying cash strength.
Free Cash Flow
Xponential Fitness, Inc. generates weak or negative free cash flow of $-7.90M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.21 in free cash annually.
FCF Yield
XPOF converts -4.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
-0.13
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How XPOF Stacks Against Its Sector Peers
| Metric | XPOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.34 | 27.16 | Better (Cheaper) |
| ROE | 15.21% | 951.00% | Weak |
| Net Margin | -13.45% | -4915.00% (disorted) | Weak |
| Debt/Equity | -1.62 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 0.75 | 2.33 | Weak Liquidity |
| ROA | -12.52% | 314.00% | Weak |
XPOF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Xponential Fitness, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
95.17%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-63.67%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
2669.91%
Industry Style: Cyclical, Growth, Discretionary
High Growth