Planet Fitness (PLNT) AI Stock Analysis

• Market Cap: $8.06B
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 47.6
• Beta (1Y): 0.86
• Revenue Growth: 10.30%
• EPS Growth: 23.45%
• Country: US
• Employees: 4,173
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): 2.01
• Shares Outstanding: 84,037,530
• 10 Day Avg. Volume: 1,251,933
• 30 Day Avg. Volume: 1,336,186
• PEG Ratio: 2.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.55
• Price to Cash Flow (P/CF): 43.10
• P/FCF Ratio: 300.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $109.38
• Price Target Upside: 12.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Planet Fitness demonstrates strong operational performance with robust revenue growth and strategic expansions. However, high financial leverage poses risks, and the stock is currently trading with bearish technical indicators. While the earnings call and corporate events provide some optimism for future growth, the high valuation and financial instability present cautionary factors.

Positive Factors

Expansion Plans

Crunch Fitness plans for 'massive expansion' under new owner as TPG sells to Leonard Green.

Market Position

Crunch Fitness is ranked #1 in the fitness category for the second year in a row and #32 overall in the annual Entrepreneur Franchise 500.

Membership Growth

Crunch Fitness added over 2.1 million members and significantly expanded its gym footprint, adding 275 locations.

Negative Factors

Churn Impact

Click-to-cancel continues to drive a small, initial uptick in churn before normalizing, impacting membership stability.

Corporate Structure Concerns

Fears center around whether PLNT's becoming more corporate/capital intensive, along with no leverage on revenue growth.

Economic Uncertainty

Management noted potential mitigating factors should a recession hit, such as trade-down from luxury fitness offerings and more favorable interest rates for franchisee leverage/build-outs.

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 through a combination of membership fees, franchise fees, and equipment sales. The company operates a franchise model, where a significant portion of its revenue comes from franchisee-owned stores. Franchisees pay initial franchise fees and ongoing royalties based on a percentage of their revenue. Additionally, Planet Fitness sells fitness equipment to its franchisees. The company also earns revenue from corporate-owned stores through membership fees. These memberships often include different tiers, providing access to various amenities and services. Planet Fitness leverages its brand recognition and extensive network of locations to maintain a steady revenue stream while expanding its market presence.

Planet Fitness Financial Statement Overview

Summary

Planet Fitness shows strong revenue growth and profitability, but the high leverage and negative equity present significant financial risks. Cash flows are robust, but careful management of debt and investment is crucial.

Income Statement

Planet Fitness has demonstrated a strong revenue growth trajectory over the years, with 2024 revenue increasing by about 10.3% compared to 2023. The gross profit and net profit margins are healthy at approximately 83.3% and 14.6% respectively for 2024, indicating effective cost management. However, the company experienced a slight decline in EBITDA margin from 41.4% in 2023 to 25.5% in 2024, which may suggest rising operational costs or increased competition.

Balance Sheet

The company's balance sheet reveals a significant leverage with a negative stockholder's equity of -$215 million as of 2024, indicating high liabilities compared to assets. The debt-to-equity ratio is not applicable due to negative equity, posing a potential risk of financial instability. The equity ratio is negative, which suggests the company is primarily financed through debt. Despite these concerns, the company has managed to maintain a substantial cash position.

Cash Flow

The cash flow statement shows a robust operating cash flow, which increased to $343 million in 2024, supporting its operations efficiently. The free cash flow, however, saw a slight decline, indicating increased capital expenditures. The operating cash flow to net income ratio is strong, showing good cash generation relative to earnings. The company needs to balance its investment and financing activities carefully to sustain growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.18B	1.07B	936.77M	587.02M	406.62M
	Gross Profit
984.53M	557.59M	474.03M	315.87M	186.61M
	EBIT
324.20M	272.86M	230.08M	143.40M	59.76M
	EBITDA
507.11M	443.53M	359.11M	223.66M	121.49M
	Net Income Common Stockholders
172.04M	138.31M	99.40M	42.77M	-15.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
407.31M	350.74M	409.84M	545.91M	439.48M
	Total Assets
3.07B	2.97B	2.85B	2.02B	1.85B
	Total Debt
427.82M	2.40B	2.34B	1.96B	1.94B
	Net Debt
134.67M	2.09B	1.93B	1.41B	1.50B
	Total Liabilities
3.29B	3.09B	3.07B	2.66B	2.56B
	Stockholders Equity
-215.37M	-115.65M	-199.01M	-645.36M	-705.87M
Cash Flow		Free Cash Flow
188.81M	194.27M	140.15M	133.33M	-21.42M
	Operating Cash Flow
343.87M	330.25M	240.21M	189.29M	31.14M
	Investing Cash Flow
-208.71M	-339.99M	-506.57M	-90.92M	-52.28M
	Financing Cash Flow
-105.00M	-141.42M	135.72M	-10.25M	57.85M

Planet Fitness Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.98
• 50DMA: Positive
• 100DMA: Negative
• 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 96.98 is above the 20-day moving average (MA) of 95.69, above the 50-day MA of 96.61, and above the 200-day MA of 90.61, indicating a bullish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 59.38 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
LULU	72 Outperform	$31.93B	17.40	42.42%	―	10.07%	19.40%
YETI	72 Outperform	$2.32B	13.64	24.01%	―	10.32%	6.05%
NKE	61 Neutral	$84.22B	18.99	31.93%	2.70%	-7.11%	-12.12%
Sector *	60 Neutral	$6.55B	11.40	3.24%	4.25%	2.38%	-21.28%
PLNT	57 Neutral	$8.06B	47.61	-79.88%	―	10.30%	23.45%
PTON	50 Neutral	$2.24B	―	58.47%	―	-3.99%	68.27%
UAA	47 Neutral	$2.45B	―	-6.12%	―	-7.47%	-131.70%

Planet Fitness Corporate Events

Planet Fitness Announces Leadership Realignment for Growth

On February 10, 2025, Planet Fitness announced a leadership realignment to align with strategic growth initiatives, effective March 3, 2025. Key changes include Bill Bode transitioning to Chief Operating Officer, Jennifer Simmons to Chief Strategy Officer, and Brian O’Donnell to SVP, Financial Planning & Analysis, Tax and Treasury. This plan aims to strengthen the company’s strategic imperatives, enhance member experience, and accelerate club openings, ultimately delivering significant value to franchisees, members, and shareholders.