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PELOTON INTERACTIVE INC-A (PTON) Stock Fundamental Analysis

NASDAQ:PTON - Nasdaq - US70614W1009 - Common Stock - Currency: USD

6.595  -0.44 (-6.19%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to PTON. PTON was compared to 30 industry peers in the Leisure Products industry. PTON has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PTON is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

PTON had negative earnings in the past year.
In the past year PTON had a positive cash flow from operations.
In the past 5 years PTON always reported negative net income.
PTON had negative operating cash flow in 4 of the past 5 years.
PTON Yearly Net Income VS EBIT VS OCF VS FCFPTON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 -1B -2B

1.2 Ratios

PTON's Return On Assets of -13.78% is on the low side compared to the rest of the industry. PTON is outperformed by 70.00% of its industry peers.
Industry RankSector Rank
ROA -13.78%
ROE N/A
ROIC N/A
ROA(3y)-47%
ROA(5y)-29.53%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
PTON Yearly ROA, ROE, ROICPTON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 400 -400

1.3 Margins

PTON has a better Gross Margin (47.45%) than 76.67% of its industry peers.
In the last couple of years the Gross Margin of PTON has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for PTON so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 47.45%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.36%
GM growth 5Y1.28%
PTON Yearly Profit, Operating, Gross MarginsPTON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

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3

2. Health

2.1 Basic Checks

PTON does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, PTON has more shares outstanding
Compared to 5 years ago, PTON has more shares outstanding
PTON has a worse debt/assets ratio than last year.
PTON Yearly Shares OutstandingPTON Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
PTON Yearly Total Debt VS Total AssetsPTON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of -1.68, we must say that PTON is in the distress zone and has some risk of bankruptcy.
PTON has a Altman-Z score of -1.68. This is in the lower half of the industry: PTON underperforms 73.33% of its industry peers.
PTON has a debt to FCF ratio of 9.90. This is a negative value and a sign of low solvency as PTON would need 9.90 years to pay back of all of its debts.
PTON has a Debt to FCF ratio of 9.90. This is comparable to the rest of the industry: PTON outperforms 46.67% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 9.9
Altman-Z -1.68
ROIC/WACCN/A
WACC8.15%
PTON Yearly LT Debt VS Equity VS FCFPTON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B

2.3 Liquidity

A Current Ratio of 2.06 indicates that PTON has no problem at all paying its short term obligations.
PTON's Current ratio of 2.06 is in line compared to the rest of the industry. PTON outperforms 46.67% of its industry peers.
PTON has a Quick Ratio of 1.65. This is a normal value and indicates that PTON is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.65, PTON is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.06
Quick Ratio 1.65
PTON Yearly Current Assets VS Current LiabilitesPTON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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4

3. Growth

3.1 Past

PTON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.67%, which is quite impressive.
PTON shows a decrease in Revenue. In the last year, the revenue decreased by -3.99%.
Measured over the past years, PTON shows a very strong growth in Revenue. The Revenue has been growing by 24.17% on average per year.
EPS 1Y (TTM)63.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%55.56%
Revenue 1Y (TTM)-3.99%
Revenue growth 3Y-12.43%
Revenue growth 5Y24.17%
Sales Q2Q%-9.37%

3.2 Future

Based on estimates for the next years, PTON will show a very strong growth in Earnings Per Share. The EPS will grow by 38.37% on average per year.
The Revenue is expected to grow by 0.66% on average over the next years.
EPS Next Y76.53%
EPS Next 2Y36.78%
EPS Next 3Y23.45%
EPS Next 5Y38.37%
Revenue Next Year-8.28%
Revenue Next 2Y-4.77%
Revenue Next 3Y-2.65%
Revenue Next 5Y0.66%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
PTON Yearly Revenue VS EstimatesPTON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B 4B
PTON Yearly EPS VS EstimatesPTON Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 2 -2 4 -4 -6

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1

4. Valuation

4.1 Price/Earnings Ratio

PTON reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year PTON is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
PTON Price Earnings VS Forward Price EarningsPTON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

PTON's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 16.99
EV/EBITDA N/A
PTON Per share dataPTON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

A more expensive valuation may be justified as PTON's earnings are expected to grow with 23.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.78%
EPS Next 3Y23.45%

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0

5. Dividend

5.1 Amount

PTON does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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PELOTON INTERACTIVE INC-A

NASDAQ:PTON (3/4/2025, 11:09:06 AM)

6.595

-0.44 (-6.19%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)02-06 2025-02-06/bmo
Earnings (Next)04-30 2025-04-30/amc
Inst Owners93.54%
Inst Owner Change9.47%
Ins Owners0.67%
Ins Owner Change8%
Market Cap2.57B
Analysts67.86
Price Target9.92 (50.42%)
Short Float %15.51%
Short Ratio3.97
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)33.28%
Min EPS beat(2)-33.44%
Max EPS beat(2)100%
EPS beat(4)1
Avg EPS beat(4)6.36%
Min EPS beat(4)-33.44%
Max EPS beat(4)100%
EPS beat(8)1
Avg EPS beat(8)-16.84%
EPS beat(12)1
Avg EPS beat(12)-48.23%
EPS beat(16)2
Avg EPS beat(16)-36.27%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)1.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)1.02%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)4
Avg Revenue beat(12)-0.77%
Revenue beat(16)5
Avg Revenue beat(16)-0.29%
PT rev (1m)16.69%
PT rev (3m)33.94%
EPS NQ rev (1m)48.47%
EPS NQ rev (3m)48.42%
EPS NY rev (1m)1.16%
EPS NY rev (3m)9.5%
Revenue NQ rev (1m)-4.89%
Revenue NQ rev (3m)-4.78%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.12%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.98
P/FCF 16.99
P/OCF 15.72
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.89
EYN/A
EPS(NY)-0.21
Fwd EYN/A
FCF(TTM)0.39
FCFY5.89%
OCF(TTM)0.42
OCFY6.36%
SpS6.72
BVpS-1.28
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -13.78%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 47.45%
FCFM 5.78%
ROA(3y)-47%
ROA(5y)-29.53%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.36%
GM growth 5Y1.28%
F-Score6
Asset Turnover1.24
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 9.9
Debt/EBITDA N/A
Cap/Depr 12.14%
Cap/Sales 0.47%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.06
Quick Ratio 1.65
Altman-Z -1.68
F-Score6
WACC8.15%
ROIC/WACCN/A
Cap/Depr(3y)106.87%
Cap/Depr(5y)220.99%
Cap/Sales(3y)4.36%
Cap/Sales(5y)5.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)63.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%55.56%
EPS Next Y76.53%
EPS Next 2Y36.78%
EPS Next 3Y23.45%
EPS Next 5Y38.37%
Revenue 1Y (TTM)-3.99%
Revenue growth 3Y-12.43%
Revenue growth 5Y24.17%
Sales Q2Q%-9.37%
Revenue Next Year-8.28%
Revenue Next 2Y-4.77%
Revenue Next 3Y-2.65%
Revenue Next 5Y0.66%
EBIT growth 1Y76.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year155.59%
EBIT Next 3Y37.41%
EBIT Next 5Y21.88%
FCF growth 1Y110.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y112.55%
OCF growth 3YN/A
OCF growth 5YN/A