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Planet Fitness (PLNT)
NYSE:PLNT
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Planet Fitness
(NYSE:PLNT)63Neutral
Positive Factors
Financial Performance
PLNT reported a top- and bottom-line beat on better franchise/equipment revenues and introduced FY25 guidance above for revenues/units.
Sales Growth
Sales beat expectations, driven by franchise and equipment, with a system-wide comparable sales increase of 5.5%, exceeding the Street's expectation.
Negative Factors
Corporate Structure
Fears center around whether PLNT's becoming more corporate/capital intensive, along with no leverage on revenue growth.
Planet Fitness (PLNT) vs. S&P 500 (SPY)
Market Cap
$7.99B
Dividend YieldN/A
Average Volume (3M)1.78M
Price to Earnings (P/E)48.5
Beta (1Y)0.95
Revenue Growth10.30%
EPS Growth23.45%
CountryUS
Employees3,411
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)2.01
Shares Outstanding84,330,140
10 Day Avg. Volume2,552,080
30 Day Avg. Volume1,781,932
Financial Highlights & Ratios
PEG Ratio2.07
Price to Book (P/B)N/A
Price to Sales (P/S)7.12
Price to Cash Flow (P/CF)40.60
P/FCF Ratio283.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$110.54Price Target Upside13.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Planet Fitness Business Overview & Revenue Model
Company DescriptionPlanet Fitness (PLNT) is a leading franchisor and operator of fitness centers in the United States, with a mission to provide affordable, high-quality fitness experiences in a welcoming, non-intimidating environment. Operating primarily in the fitness and wellness sector, the company is renowned for its 'Judgement Free Zone' philosophy, which aims to make fitness accessible and enjoyable for everyone. Planet Fitness offers a range of cardio and strength equipment, group fitness training, and a variety of membership options designed to cater to different fitness needs and preferences.
How the Company Makes MoneyPlanet 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 showcases strong revenue growth and profitability metrics, reflecting a successful business model in the leisure industry. However, the high leverage and negative equity present significant financial risks. While the cash flows are robust, careful management of debt and investment activities will be crucial for future stability and growth.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.75
Positive
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.40
Negative
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.65
Positive
| 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
Neutral
97.31
Price Trends
101.55
Negative
96.66
Positive
86.22
Positive
Market Momentum
-2.36
Negative
47.56
Neutral
71.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLNT, the sentiment is Neutral. The current price of 97.31 is below the 20-day moving average (MA) of 98.10, below the 50-day MA of 101.55, and above the 200-day MA of 86.22, indicating a neutral trend. The MACD of -2.36 indicates Negative momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 71.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLNT.
Planet Fitness Risk Analysis
Planet Fitness disclosed 48 risk factors in its most recent earnings report. Planet Fitness reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Planet Fitness Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $44.15B | 24.87 | 46.21% | ― | 10.84% | 76.07% | |
76 Outperform | $2.88B | 17.39 | 24.01% | ― | 10.32% | 6.05% | |
74 Outperform | $114.94B | 24.01 | 34.67% | 1.94% | -4.77% | -5.99% | |
63 Neutral | $7.99B | 48.51 | -79.88% | ― | 10.30% | 23.45% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
54 Neutral | $2.47B | ― | 58.47% | ― | -3.99% | 68.27% | |
42 Neutral | $2.86B | ― | -6.12% | ― | -7.47% | -131.70% |
* Consumer Cyclical Sector Average
Performance Comparison
PLNT
Planet Fitness
97.31
34.06
53.85%
LULU
Lululemon Athletica
344.36
-113.40
-24.77%
NKE
Nike
78.59
-20.64
-20.80%
YETI
Yeti Holdings
35.75
-2.74
-7.12%
PTON
Peloton Interactive
6.21
1.50
31.85%
UAA
Under Armour
7.08
-1.22
-14.70%
Planet Fitness Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -1.94% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
Planet Fitness demonstrated strong revenue and membership growth in 2024, supported by strategic price increases and successful international expansion. However, challenges remain in achieving higher club opening targets and maintaining adjusted EBITDA margins. The company's efforts to lay a foundation for sustainable growth are evident, but some metrics indicate room for improvement.Highlights
Impressive Revenue and Growth Metrics
Planet Fitness achieved a 19.4% revenue growth and a 14.4% increase in adjusted EBITDA during Q4 2024. System-wide same club sales grew by 5.5%, and the company added 86 new clubs in the quarter, bringing the global club count to over 2,700.
Membership Growth and Expansion
Planet Fitness grew its membership by 1 million in 2024, reaching approximately 19.7 million members. Black card penetration increased to approximately 64%, and Gen Z continues to be the fastest-growing demographic.
Successful Price Increase Strategy
The classic card membership price was increased from $10 to $15 after 25 years, contributing to revenue growth. The company observed low member churn and a favorable response to the price hike.
International Expansion
Planet Fitness entered the Spanish market in 2024 and ended the year with five clubs, marking a successful international expansion strategy.
Lowlights
Decreased Adjusted EBITDA Margin
The adjusted EBITDA margin decreased to 38.4% in Q4 2024 compared to 40.1% in Q4 2023, primarily due to increased marketing investments and higher equipment sales, which are lower margin.
Challenges in Meeting Club Opening Targets
Although Planet Fitness aims to open 200 new clubs annually, it will take a few years to reach this goal. The company expects to open between 160 and 170 new clubs in 2025, indicating a slower pace than anticipated.
Company Guidance
In the Q4 2024 earnings call, Planet Fitness provided robust guidance and performance metrics. The company achieved a 5.5% increase in system-wide same club sales and a 19.4% growth in revenue for the quarter, alongside a 14.4% rise in adjusted EBITDA. They opened 86 new clubs in Q4, totaling 150 new openings for the year, which brought their global club count to over 2,700. Membership grew by 1 million, reaching approximately 19.7 million members by year-end. For 2025, Planet Fitness anticipates opening between 160 and 170 new clubs and projects system-wide same club sales growth between 5% and 6%. The guidance also indicates a 10% increase in revenue, adjusted EBITDA growth of 10%, and adjusted net income growth of 8% to 9%. The company is committed to achieving sustainable long-term growth by focusing on strategic imperatives such as redefining their brand, enhancing member experience, refining product offerings, and optimizing club formats.Planet Fitness Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Planet Fitness Announces Leadership Realignment for Growth
Positive
Feb 12, 2025
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.
Executive/Board ChangesPrivate Placements and FinancingStock BuybackBusiness Operations and StrategyFinancial Disclosures
Planet Fitness Reports Strong Growth and Strategic Initiatives
Positive
Jan 13, 2025
Planet Fitness announced key operational metrics for 2024, including a growth in membership to 19.7 million and a 5.0% increase in same club sales. The company opened 150 new clubs and placed equipment in 124 new franchised locations, achieving its 2024 growth objectives. The company also made strategic moves such as refinancing debt, launching a share repurchase program, and enhancing its economic model. The leadership team was strengthened with new executive appointments to drive further growth in 2025, with a focus on redefining the brand and improving member experience.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.