Planet Fitness (PLNT) AI Stock Analysis

• Market Cap: $7.71B
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 40.9
• Beta (1Y): 0.69
• Revenue Growth: 12.47%
• EPS Growth: 22.74%
• Country: US
• Employees: 4,173
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.86
• Shares Outstanding: 83,917,430
• 10 Day Avg. Volume: 1,108,107
• 30 Day Avg. Volume: 1,197,220
• 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: 1.47
• Enterprise Value/Revenue: 9.03
• Enterprise Value/Gross Profit: 17.29
• Enterprise Value/Ebitda: 21.15
• 1Y Price Target: $126.00
• Price Target Upside: 40.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 59 Neutral
• Price Target: $94.00 ▲(4.47% Upside)

Planet Fitness's overall stock score is driven by strong earnings call performance and robust revenue growth. However, high leverage, declining cash flow, and bearish technical indicators weigh down the score. The stock's high valuation further limits its appeal.

Positive Factors

Membership Growth

Strong membership growth indicates robust consumer demand and effective marketing strategies, supporting long-term revenue expansion and brand loyalty.

International Expansion

Positive international expansion suggests potential for revenue diversification and growth, enhancing the company's global footprint and market reach.

High School Summer Pass Success

The success of the High School Summer Pass program fosters early brand engagement, potentially converting young participants into long-term members.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Elevated Attrition Rates

Increased attrition rates could impact revenue stability and growth, as maintaining a stable membership base is crucial for subscription-based models.

Decline in Free Cash Flow Growth

A decline in free cash flow growth may hinder the company's ability to fund operations, pay down debt, or invest in strategic initiatives.

Planet Fitness Business Overview & Revenue Model

Company Description

Planet Fitness, Inc. is a leading fitness franchise based in the United States, primarily operating within the health and wellness sector. Established in 1992, the company focuses on providing affordable and accessible gym memberships to a broad demographic, promoting a judgment-free workout environment. With thousands of locations across North America and expanding internationally, Planet Fitness offers a range of fitness services, including access to gym equipment, group fitness classes, personal training, and amenities such as tanning and massage chairs.

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 net profit margin of 14.84%. However, high leverage with a negative equity and declining free cash flow growth pose significant risks.

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	135.22M	-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: Negative
• Last Price: 89.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLNT, the sentiment is Negative. The current price of 89.98 is below the 20-day moving average (MA) of 95.09, below the 50-day MA of 99.92, and below the 200-day MA of 101.76, indicating a bearish trend. The MACD of -2.06 indicates Positive momentum. The RSI at 32.84 is Neutral, neither overbought nor oversold. The STOCH value of 13.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLNT.

Planet Fitness Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	―	$2.39B	31.16	―	0.69%	7.27%	45.12%
LTH	―	$5.51B	24.50	8.66%	―	17.25%	93.88%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PLNT	―	$7.71B	40.86	―	―	12.47%	22.74%
MODG	―	$1.75B	―	-46.53%	―	-2.35%	-7104.57%
PTON	―	$3.05B	―	―	―	-7.76%	79.66%
XPOF	―	$317.91M	―	―	―	-3.02%	-517.53%

Planet Fitness Corporate Events

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.