PLANET FITNESS INC - CL A (PLNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PLNT - US72703H1014 - Common Stock
91.65 USD
+0.02 (+0.02%)
We assign a fundamental rating of 5 out of 10 to PLNT. PLNT was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. PLNT has only an average score on both its financial health and profitability. PLNT shows excellent growth, but is valued quite expensive already. With these ratings, PLNT could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- PLNT had positive earnings in the past year.
- In the past year PLNT had a positive cash flow from operations.
- PLNT had positive earnings in 4 of the past 5 years.
- In the past 5 years PLNT always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 6.74%, PLNT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- PLNT's Return On Invested Capital of 9.88% is fine compared to the rest of the industry. PLNT outperforms 72.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PLNT is below the industry average of 10.37%.
- The last Return On Invested Capital (9.88%) for PLNT is above the 3 year average (7.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | N/A | ||
| ROIC | 9.88% |
ROA(3y)4.58%
ROA(5y)3.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.31%
ROIC(5y)5.99%
1.3 Margins
- PLNT's Profit Margin of 15.99% is amongst the best of the industry. PLNT outperforms 88.64% of its industry peers.
- PLNT's Profit Margin has declined in the last couple of years.
- PLNT's Operating Margin of 29.34% is amongst the best of the industry. PLNT outperforms 96.21% of its industry peers.
- PLNT's Operating Margin has declined in the last couple of years.
- PLNT's Gross Margin of 51.92% is fine compared to the rest of the industry. PLNT outperforms 60.61% of its industry peers.
- In the last couple of years the Gross Margin of PLNT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.34% | ||
| PM (TTM) | 15.99% | ||
| GM | 51.92% |
OM growth 3Y4.53%
OM growth 5Y-4.27%
PM growth 3Y25.92%
PM growth 5Y-3.16%
GM growth 3Y-1.11%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
- PLNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- PLNT has less shares outstanding than it did 1 year ago.
- PLNT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for PLNT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.99 indicates that PLNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- PLNT has a Altman-Z score (1.99) which is in line with its industry peers.
- The Debt to FCF ratio of PLNT is 10.68, which is on the high side as it means it would take PLNT, 10.68 years of fcf income to pay off all of its debts.
- PLNT's Debt to FCF ratio of 10.68 is in line compared to the rest of the industry. PLNT outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.68 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.29
WACC7.66%
2.3 Liquidity
- A Current Ratio of 2.09 indicates that PLNT has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.09, PLNT belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
- A Quick Ratio of 2.06 indicates that PLNT has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.06, PLNT belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.95% over the past year.
- PLNT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.03% yearly.
- Looking at the last year, PLNT shows a quite strong growth in Revenue. The Revenue has grown by 14.39% in the last year.
- The Revenue has been growing by 11.40% on average over the past years. This is quite good.
EPS 1Y (TTM)18.95%
EPS 3Y46.53%
EPS 5Y10.03%
EPS Q2Q%25%
Revenue 1Y (TTM)14.39%
Revenue growth 3Y26.27%
Revenue growth 5Y11.4%
Sales Q2Q%13.04%
3.2 Future
- PLNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.23% yearly.
- PLNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.88% yearly.
EPS Next Y19.84%
EPS Next 2Y18.36%
EPS Next 3Y18.69%
EPS Next 5Y17.23%
Revenue Next Year12.88%
Revenue Next 2Y11.88%
Revenue Next 3Y11.8%
Revenue Next 5Y9.88%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 31.07, PLNT can be considered very expensive at the moment.
- PLNT's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of PLNT to the average of the S&P500 Index (28.60), we can say PLNT is valued inline with the index average.
- PLNT is valuated quite expensively with a Price/Forward Earnings ratio of 25.36.
- PLNT's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of PLNT to the average of the S&P500 Index (25.83), we can say PLNT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.07 | ||
| Fwd PE | 25.36 |
4.2 Price Multiples
- 63.64% of the companies in the same industry are cheaper than PLNT, based on the Enterprise Value to EBITDA ratio.
- PLNT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.79 | ||
| EV/EBITDA | 17.29 |
4.3 Compensation for Growth
- PLNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- PLNT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as PLNT's earnings are expected to grow with 18.69% in the coming years.
PEG (NY)1.57
PEG (5Y)3.1
EPS Next 2Y18.36%
EPS Next 3Y18.69%
5. Dividend
5.1 Amount
- PLNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PLANET FITNESS INC - CL A / PLNT FAQ
What is the fundamental rating for PLNT stock?
ChartMill assigns a fundamental rating of 5 / 10 to PLNT.
Can you provide the valuation status for PLANET FITNESS INC - CL A?
ChartMill assigns a valuation rating of 3 / 10 to PLANET FITNESS INC - CL A (PLNT). This can be considered as Overvalued.
How profitable is PLANET FITNESS INC - CL A (PLNT) stock?
PLANET FITNESS INC - CL A (PLNT) has a profitability rating of 6 / 10.
Can you provide the financial health for PLNT stock?
The financial health rating of PLANET FITNESS INC - CL A (PLNT) is 5 / 10.
How sustainable is the dividend of PLANET FITNESS INC - CL A (PLNT) stock?
The dividend rating of PLANET FITNESS INC - CL A (PLNT) is 0 / 10 and the dividend payout ratio is 0%.