Planet Fitness (PLNT) AI Stock Analysis

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Planet Fitness

(NYSE:PLNT)

61Neutral

Planet Fitness demonstrates strong operational performance with impressive revenue and membership growth. However, financial risks related to high leverage and negative equity, combined with a high valuation, present challenges. Technical indicators suggest market consolidation, while recent strategic initiatives and leadership changes are promising for long-term growth. Overall, the stock is positioned for cautious optimism with potential for future improvement contingent on financial stabilization and execution of strategic plans.

Positive Factors

Market Positioning

Planet Fitness is well positioned to perform in a tariff and potentially soft macro backdrop, with no expected risk to future earnings estimates.

Membership Growth

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

Revenue Growth

Analyst projects revenue growth of 13% to 14%, slightly ahead of consensus.

Negative Factors

Competition

Planet Fitness remains well positioned given its scale and focus on first-time gym goers, despite increased competition from peers.

EBITDA Margin

Estimate 70 basis points of EBITDA margin contraction, to 42.2%, which is below consensus.

Tariff Impact

If tariffs persist long-term, that will be a headwind to franchise economics and openings.

Planet Fitness (PLNT) vs. S&P 500 (SPY)

Market Cap

$8.43B

Dividend YieldN/A

Average Volume (3M)1.22M

Price to Earnings (P/E)49.8

Beta (1Y)0.85

Revenue Growth10.30%

EPS Growth23.45%

CountryUS

Employees4,173

SectorConsumer Cyclical

Sector Strength58

IndustryLeisure

Share Statistics

EPS (TTM)0.59

Shares Outstanding84,037,530

10 Day Avg. Volume1,204,746

30 Day Avg. Volume1,215,765

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.25

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit10.66

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$108.25

Price Target Upside11.51% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering13

Planet Fitness Business Overview & Revenue Model

Company DescriptionPlanet 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 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 Key Performance Indicators (KPIs)

Any

Store Count by Type

Store Count by Type
Monitors the number of locations by format, indicating expansion strategy, market penetration, and potential for revenue growth.

Chart InsightsPlanet Fitness continues to expand its franchisee-owned and corporate-owned stores, with notable growth in the latter since 2022. The recent earnings call highlights a robust expansion strategy, adding 150 new clubs in 2024 and targeting up to 170 in 2025. Despite challenges in meeting higher opening targets, the company is committed to sustainable growth through brand redefinition and international expansion. The strong membership growth and successful price increase strategy further bolster their market position, although maintaining EBITDA margins remains a challenge due to increased marketing and equipment costs.

Data provided by:

Main Street Data

Planet Fitness Financial Statement Overview

Summary

Planet Fitness showcases strong revenue growth and profitability metrics, with a healthy net profit margin and robust operating cash flow. However, the high leverage and negative equity present significant financial risks. While the company is performing well operationally, it faces challenges on the balance sheet front.

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Neutral

Last Price97.08

Price Trends

50DMA

96.25

Positive

100DMA

99.27

Negative

200DMA

91.82

Positive

Market Momentum

MACD

0.64

Negative

RSI

50.45

Neutral

STOCH

77.44

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 97.08 is above the 20-day moving average (MA) of 96.43, above the 50-day MA of 96.25, and above the 200-day MA of 91.82, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 77.44 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 50 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	74 Outperform	$1.89B	28.97	12.80%	0.66%	9.80%	89.42%
LTH	70 Outperform	$6.75B	43.49	6.42%	―	18.24%	99.18%
PLNT	61 Neutral	$8.43B	49.78	-79.88%	―	10.30%	23.45%
Sector *	61 Neutral	$6.58B	11.81	3.06%	3.99%	2.54%	-21.54%
MODG	50 Neutral	$1.26B	―	-46.06%	―	-1.06%	-1641.55%
PTON	48 Neutral	$2.73B	―	58.47%	―	-3.99%	68.27%
XPOF	40 Underperform	$396.82M	―	22.27%	―	0.34%	-309.65%

* Consumer Cyclical Sector Average

Performance Comparison

PLNT

Planet Fitness

101.73

36.41

55.74%

MODG

Topgolf Callaway Brands

7.18

-8.07

-52.92%

OSW

OneSpaWorld Holdings

18.66

3.77

25.32%

PTON

Peloton Interactive

6.51

2.05

45.96%

XPOF

Xponential Fitness

8.70

-3.67

-29.67%

LTH

Life Time Group Holdings

32.97

18.13

122.17%

Planet Fitness Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -2.18%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong performance in membership growth, revenue, and strategic initiatives, despite challenges such as tariff concerns and increased expenses. The company is optimistic about future growth and has reiterated its guidance for 2025.

Q1-2025 Updates

Positive Updates

Strong Membership Growth

Ended the first quarter with 20.6 million members, an increase of approximately 900,000 from the end of 2024.

System-wide Same Club Sales Growth

Grew system-wide same club sales by 6.1%.

Club Expansion

Opened 19 new clubs globally, bringing the total club count to 2,741.

Black Card Penetration

Achieved 65% Black Card membership penetration, a nearly 300 basis point increase from Q1 of last year.

Revenue Growth

Total revenue was $276.7 million, an increase of 11.5% from the previous year.

Adjusted EBITDA Growth

Adjusted EBITDA was $117 million, an increase of 10.1% year-over-year.

Negative Updates

Tariff Concerns

Ongoing discussions with vendors regarding the potential impact of tariffs on business and franchisee unit economics.

New Club Placements

Completed 10 new club placements this quarter compared to 14 last year.

Increased SG&A Expenses

SG&A for the quarter was $34.3 million compared to $29.2 million, while adjusted SG&A was $32.5 million, an increase of 19.1%.

Company Guidance

During the Planet Fitness First Quarter 2025 Earnings Call, the company provided guidance that highlighted several key metrics and strategic imperatives. The company ended the first quarter with 20.6 million members, reflecting a growth of approximately 900,000 from the end of 2024. They reported system-wide same club sales growth of 6.1% and opened 19 new clubs, bringing the total club count to 2,741. Black Card membership penetration reached 65%, a nearly 300 basis point increase from the previous year, driven by a successful promotional strategy. The company experienced strong first quarter total revenue of $276.7 million, up 11.5% from the prior year. Adjusted EBITDA was $117 million, representing a 10.1% year-over-year increase. Planet Fitness reiterated its 2025 growth targets, expecting system-wide same club sales growth between 5% and 6%, revenue growth of approximately 10%, and adjusted EBITDA growth of about 10%. The company also aims to open between 160 and 170 new clubs throughout the year.

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.

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.