Planet Fitness (PLNT) AI Stock Analysis

• Market Cap: $8.89B
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 47.2
• Beta (1Y): 0.71
• Revenue Growth: 12.47%
• EPS Growth: 22.74%
• Country: US
• Employees: 4,173
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Leisure
• EPS (TTM): 0.86
• Shares Outstanding: 83,917,430
• 10 Day Avg. Volume: 1,001,110
• 30 Day Avg. Volume: 1,371,729
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 9.03
• Enterprise Value/Gross Profit: 17.29
• Enterprise Value/Ebitda: 21.15
• 1Y Price Target: $125.22
• Price Target Upside: 17.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 55 Neutral
• Price Target: $107.00 ▲(0.19% Upside)

Planet Fitness's overall stock score is primarily influenced by its financial performance and technical analysis. While the company demonstrates strong revenue growth and profitability, significant leverage and declining free cash flow growth pose risks. The technical analysis indicates a lack of strong momentum, and the high P/E ratio suggests overvaluation. These factors collectively result in a moderate stock score.

Positive Factors

Earnings

Planet Fitness reported robust Q2 earnings that were nicely ahead of expectations.

Membership Growth

The company added 200k net new members sequentially in Q2, ending the quarter with 20.8 million.

Negative Factors

Churn

The rollout of click-to-cancel functionality resulted in a slightly higher-than-expected uptick in churn.

Guidance

Reiterated guidance of 160-170 system-wide new club openings reduces the likelihood of significant upside.

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 a solid gross profit margin of 72.68% and a net profit margin of 14.84%. However, the company faces significant balance sheet risks due to high leverage, with a negative equity and a debt-to-equity ratio of -2.07. The decline in free cash flow growth by 13.53% also poses a concern.

Income Statement

Planet Fitness shows a solid revenue growth trajectory with a 3.3% increase in TTM, although this is a slowdown compared to previous years. The company maintains healthy profit margins, with a TTM gross profit margin of 72.68% and a net profit margin of 14.84%. However, the EBIT and EBITDA margins have slightly decreased, indicating potential cost pressures.

Balance Sheet

The balance sheet reveals significant leverage, with a negative equity and a debt-to-equity ratio of -2.07 in TTM. This high leverage poses a risk, although the company has managed to maintain operations. The negative return on equity indicates challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 13.53% in TTM, which is concerning. However, the operating cash flow to net income ratio of 1.35 suggests strong cash generation relative to net income. The free cash flow to net income ratio of 0.61 indicates reasonable cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.18B	1.07B	936.77M	587.02M	406.62M
Gross Profit	653.19M	615.02M	557.59M	474.03M	315.87M	186.61M
EBITDA	533.99M	507.11M	443.53M	374.09M	195.97M	121.43M
Net Income	188.98M	172.04M	138.31M	99.40M	42.77M	-14.99M
Balance Sheet
Total Assets	3.12B	3.07B	2.97B	2.85B	2.02B	1.85B
Cash, Cash Equivalents and Short-Term Investments	442.72M	407.31M	350.74M	409.84M	545.91M	439.48M
Total Debt	2.59B	2.58B	2.37B	2.34B	1.96B	1.94B
Total Liabilities	3.28B	3.29B	3.09B	3.07B	2.66B	2.56B
Stockholders Equity	-158.69M	-215.38M	-115.65M	-199.01M	-645.36M	-705.87M
Cash Flow
Free Cash Flow	204.30M	188.81M	194.27M	140.15M	133.33M	-21.42M
Operating Cash Flow	353.82M	343.87M	330.25M	240.21M	189.29M	31.14M
Investing Cash Flow	-189.24M	-208.71M	-339.99M	-506.57M	-90.92M	-52.28M
Financing Cash Flow	-67.39M	-105.00M	-141.42M	135.72M	-10.25M	57.85M

Planet Fitness Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 106.8 is below the 20-day moving average (MA) of 106.85, below the 50-day MA of 108.31, and above the 200-day MA of 101.84, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 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	69 Neutral	$2.34B	33.64	13.16%	0.70%	8.51%	31.24%
LTH	68 Neutral	$6.20B	27.35	8.66%	―	17.25%	93.88%
Sector *	61 Neutral	$17.78B	13.97	-5.40%	3.03%	1.50%	-15.71%
MODG	57 Neutral	$1.82B	―	-46.53%	―	-2.35%	-7104.57%
PLNT	55 Neutral	$8.89B	47.19	-79.88%	―	12.47%	22.74%
XPOF	52 Neutral	$421.61M	―	22.27%	―	-3.02%	-517.53%
PTON	50 Neutral	$3.09B	―	58.47%	―	-7.76%	79.66%

Planet Fitness Corporate Events

Planet Fitness Approves Key Amendments at Annual Meeting

On May 6, 2025, Planet Fitness held its Annual Meeting where stockholders approved several significant amendments to the company’s Second Restated Certificate of Incorporation. These amendments included the removal of supermajority voting requirements, the elimination of obsolete provisions, and the limitation of liability for certain officers. Additionally, stockholders elected three directors, ratified KPMG LLP as the independent registered public accounting firm for 2025, and approved the 2025 Omnibus Incentive Plan. However, a stockholder proposal regarding the adoption of an EEO-1 report disclosure policy was not approved.

The most recent analyst rating on (PLNT) stock is a Hold with a $99.00 price target. To see the full list of analyst forecasts on Planet Fitness stock, see the PLNT Stock Forecast page.