Planet Fitness (PLNT) AI Stock Analysis

• Market Cap: $8.77B
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 42.5
• Beta (1Y): 0.62
• Revenue Growth: 14.39%
• EPS Growth: 31.64%
• Country: US
• Employees: 4,173
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.80
• Shares Outstanding: 83,917,430
• 10 Day Avg. Volume: 2,126,557
• 30 Day Avg. Volume: 1,585,217
• PEG Ratio: 2.11
• Price to Book (P/B): -39.30
• Price to Sales (P/S): 7.16
• P/FCF Ratio: 44.83
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 8.39
• Enterprise Value/Gross Profit: 17.16
• Enterprise Value/Ebitda: 19.32
• 1Y Price Target: $132.18
• Price Target Upside: 25.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.02
• Revenue Forecast (FY): $1.31B

• Rating: 61 Neutral
• Price Target: $109.00 ▲(3.83% Upside)

Planet Fitness's strong earnings call and strategic growth initiatives are offset by financial risks from high leverage and overvaluation concerns. Technical indicators suggest caution, but the company's robust membership growth and strategic plans provide optimism.

Positive Factors

Membership Growth

Strong membership growth indicates increasing market penetration and brand strength, supporting long-term revenue expansion and stability.

Strategic Expansion

Continued expansion through new club openings enhances market presence and potential revenue streams, reinforcing growth strategy.

High School Summer Pass Program

Increased participation in the program can lead to future membership conversions, fostering long-term customer base growth and loyalty.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, which could limit strategic flexibility and increase risk during downturns.

Declining Free Cash Flow

Declining free cash flow may hinder future investments and debt repayments, impacting long-term financial health and operational capacity.

Elevated Attrition Rates

High attrition rates can erode membership base and revenue, challenging growth and necessitating increased marketing and retention efforts.

Planet Fitness Business Overview & Revenue Model

Company Description

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. It operates through Franchise, Corporate-Owned Stores, and Equipment segments. The Franchise segment is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. The Corporate-Owned Stores segment operates corporate-owned stores in the United States and Canada. The Equipment segment engages in the sale of fitness equipment to franchisee-owned stores in the United States and Canada. As of December 31,2021, the company had 2,254 stores in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, and Australia. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.

How the Company Makes Money

Planet Fitness generates revenue primarily through membership fees, which are structured as monthly subscriptions. The company offers a variety of membership tiers, including a low-cost basic membership and a more premium option that includes additional benefits. In addition to membership dues, Planet Fitness earns revenue from one-time fees, such as initiation fees and annual fees, which contribute to its overall income. The company's business model also capitalizes on franchise fees and royalties from its franchisees, which are a significant revenue stream as it expands its brand presence. Additionally, ancillary services, such as tanning and massage services, along with retail sales of fitness-related merchandise, provide further revenue opportunities. Planet Fitness emphasizes its low-cost, high-value proposition, which attracts a diverse customer base, contributing to its overall financial success.

Planet Fitness Financial Statement Overview

Summary

Planet Fitness shows strong revenue growth and profitability with solid margins. However, the balance sheet is concerning due to high leverage and negative equity, posing financial risks. Cash flow is strong, but declining free cash flow growth is a potential concern.

Income Statement

Planet Fitness has shown consistent revenue growth with a TTM revenue growth rate of 3.05%, indicating a positive trajectory. The gross profit margin of 59.78% and net profit margin of 15.97% are strong, reflecting efficient cost management and profitability. However, the EBIT margin has decreased from 29.35% in 2024 to 22.50% TTM, which could indicate rising operational costs or other challenges.

Balance Sheet

The balance sheet reveals significant leverage with a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -2.26 TTM. The return on equity is also negative, indicating that the company is not generating sufficient returns on its equity base. These factors suggest financial instability and potential risks if leverage is not managed effectively.

Cash Flow

Operating cash flow is strong with a coverage ratio of 1.19 TTM, indicating good cash generation relative to net income. However, free cash flow growth is negative at -72.4% TTM, which could impact future investments and debt repayments. The free cash flow to net income ratio of 56.58% suggests moderate efficiency in converting net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.18B	1.07B	936.77M	587.02M	406.62M
Gross Profit	629.84M	615.02M	557.59M	474.03M	315.87M	186.61M
EBITDA	559.26M	507.11M	443.53M	374.09M	195.97M	121.43M
Net Income	205.80M	172.04M	138.31M	99.40M	42.77M	-14.99M
Balance Sheet
Total Assets	3.06B	3.07B	2.97B	2.85B	2.02B	1.85B
Cash, Cash Equivalents and Short-Term Investments	499.77M	407.31M	350.74M	409.84M	545.91M	439.48M
Total Debt	2.58B	2.58B	2.37B	2.34B	1.96B	1.94B
Total Liabilities	3.25B	3.29B	3.09B	3.07B	2.66B	2.56B
Stockholders Equity	-194.76M	-215.38M	-115.65M	-199.01M	-645.36M	-705.87M
Cash Flow
Free Cash Flow	202.82M	188.81M	194.27M	140.15M	135.22M	-21.42M
Operating Cash Flow	358.49M	343.87M	330.25M	240.21M	189.29M	31.14M
Investing Cash Flow	-166.44M	-208.71M	-339.99M	-506.57M	-90.92M	-52.28M
Financing Cash Flow	-173.03M	-105.00M	-141.42M	135.72M	-10.25M	57.85M

Planet Fitness Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 104.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLNT, the sentiment is Positive. The current price of 104.98 is above the 20-day moving average (MA) of 99.38, above the 50-day MA of 98.98, and above the 200-day MA of 101.35, indicating a bullish trend. The MACD of 2.14 indicates Negative momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 31.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLNT.

Planet Fitness Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	68 Neutral	$2.02B	28.29	13.53%	0.88%	7.27%	45.12%
LTH	67 Neutral	$5.48B	19.37	10.38%	―	15.77%	86.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PLNT	61 Neutral	$8.77B	42.55	―	―	14.39%	31.64%
MODG	53 Neutral	$1.72B	―	-46.95%	―	-3.58%	-12720.97%
PTON	45 Neutral	$2.87B	―	―	―	-8.74%	74.66%
XPOF	42 Neutral	$280.84M	―	―	―	-3.55%	-111.90%

Planet Fitness Corporate Events

Planet Fitness Reports Strong Q3 2025 Results

Planet Fitness Inc., a leading global franchisor and operator of fitness centers, reported robust financial results for the third quarter of 2025, highlighting significant growth in revenue and net income. The company, known for its Judgement Free Zone® and extensive franchise network, continues to expand its footprint in the fitness industry.

Planet Fitness Inc. Reports Strong Q3 Growth Amid Challenges

During the recent earnings call, Planet Fitness Inc. expressed a generally positive sentiment, highlighting robust growth in both membership and revenue. The company celebrated successful marketing campaigns and strategic achievements, though it acknowledged challenges such as elevated attrition and the impact of the newly introduced click-to-cancel feature.

Planet Fitness Reports Strong Q2 2025 Results

Planet Fitness Inc., a leading global franchisor and operator of fitness centers, is known for its affordable, non-intimidating gym environment and operates in the fitness industry with a significant presence across multiple countries.

Planet Fitness Inc. Reports Strong Q2 Growth Amid Challenges

Planet Fitness Inc. recently held its earnings call, revealing a generally positive sentiment with strong growth in membership and revenue. The company highlighted strategic initiatives aimed at further expansion. However, challenges such as elevated attrition rates due to online cancellation functionality and a cautious outlook amid macroeconomic conditions were also discussed.