Planet Fitness (PLNT) AI Stock Analysis

• Market Cap: $8.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 49.8
• Beta (1Y): 0.80
• Revenue Growth: 10.32%
• EPS Growth: 20.44%
• Country: US
• Employees: 4,173
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): 0.59
• Shares Outstanding: 83,851,170
• 10 Day Avg. Volume: 1,158,719
• 30 Day Avg. Volume: 1,580,022
• PEG Ratio: 0.51
• Price to Book (P/B): -33.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.31
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 9.73
• Enterprise Value/Ebitda: 4.50
• 1Y Price Target: $114.82
• Price Target Upside: 9.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 64 Neutral
• Price Target: $105.00 ▲(0.00%Upside)

Planet Fitness shows strong revenue and membership growth, supported by efficient cost management. However, financial stability is hampered by negative equity and high leverage. While technical indicators show stable short-term trends, the company's high valuation poses a risk. Positive earnings call sentiment and strategic initiatives offer optimism for future performance.

Positive Factors

Economic Resilience

Planet's low-cost membership model should also prove relatively resilient in the event of a downturn in consumer spending.

Legislative Opportunities

The 'One, Big, Beautiful Bill' under consideration by the House would allow gym memberships to qualify as an HSA expense, potentially driving incremental membership growth.

Membership Growth

A third of PLNT’s joins are returning members, trending higher at 37-38%, indicating strong member loyalty.

Negative Factors

Cost Management

Higher SG&A spending on increased C Suite compensation partially offsets higher same-store sales estimates.

Earnings Performance

First-quarter earnings per share were below expectations, due to lower profit margins.

Planet Fitness Business Overview & Revenue Model

Company Description

Planet Fitness, Inc. (PLNT) is a leading operator of fitness centers in the United States, specializing in providing affordable and non-intimidating gym environments. Founded in 1992 and headquartered in Hampton, New Hampshire, the company offers a range of fitness equipment and amenities, targeting both fitness enthusiasts and beginners. Planet Fitness is known for its 'Judgement Free Zone' philosophy, which aims to create a welcoming atmosphere for all members.

How the Company Makes Money

Planet Fitness generates revenue primarily through a combination of membership fees, franchise royalties, and equipment sales to franchisees. The company operates a franchise model with the majority of its gyms run by franchisees who pay initial franchise fees and ongoing royalties based on membership revenue. Additionally, Planet Fitness sells fitness equipment to its franchisees, contributing to its revenue streams. The company's business model focuses on attracting a large base of casual gym-goers with low-cost membership options, typically priced at $10 per month, which helps maintain steady income through scale and volume. Partnerships with equipment suppliers and strategic marketing initiatives also play a role in enhancing revenue.

Planet Fitness Financial Statement Overview

Summary

Planet Fitness demonstrates strong revenue growth and profitability with effective cost management. However, financial stability is challenged by negative equity and high leverage. Cash flow generation is robust, supporting operational needs, but capital management requires vigilance to sustain growth. The company should focus on improving equity and managing debt levels to enhance financial health.

Income Statement

Planet Fitness shows strong revenue growth, with a TTM (Trailing-Twelve-Months) revenue increase of approximately 12.99% compared to the previous year. The company's gross profit margin for the TTM is 72.68%, indicating efficient cost management. Net profit margin is at 14.84%, showing solid profitability. EBIT margin is 27.90%, and EBITDA margin stands at 37.94%, reflecting robust operating performance. However, the slight decrease in gross profit compared to the previous year suggests a potential area for improvement in cost control.

Balance Sheet

The company faces challenges with a negative stockholders' equity of -$219.86 million, indicating potential financial instability. The debt-to-equity ratio cannot be calculated due to the negative equity, which implies high leverage. Despite this, total assets have grown, demonstrating asset base expansion. The return on equity is not calculable due to the negative equity, highlighting the need for equity improvement.

Cash Flow

Operating cash flow has improved to $388.07 million in the TTM, showing strong cash-generating ability. Free cash flow grew by 10.10% from the previous year, indicating good cash management. The operating cash flow to net income ratio of 2.16 suggests effective cash conversion from profits. Free cash flow to net income ratio is 1.32, reflecting healthy cash flow relative to net income. However, capital expenditures and investing activities need careful monitoring to ensure sustainable growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.21B	1.18B	1.07B	936.77M	587.02M	406.62M
	Gross Profit
879.60M	984.53M	557.59M	474.03M	315.87M	186.61M
	EBIT
337.58M	324.20M	272.86M	230.08M	143.40M	59.76M
	EBITDA
459.31M	507.11M	443.53M	359.11M	223.66M	121.49M
	Net Income Common Stockholders
179.60M	172.04M	138.31M	99.40M	42.77M	-15.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
453.63M	407.31M	350.74M	409.84M	545.91M	439.48M
	Total Assets
3.09B	3.07B	2.97B	2.85B	2.02B	1.85B
	Total Debt
455.65M	2.58B	2.40B	2.34B	1.96B	1.94B
	Net Debt
111.74M	2.28B	2.09B	1.93B	1.41B	1.50B
	Total Liabilities
3.31B	3.29B	3.09B	3.07B	2.66B	2.56B
	Stockholders Equity
-219.86M	-215.37M	-115.65M	-199.01M	-645.36M	-705.87M
Cash Flow		Free Cash Flow
236.26M	188.81M	194.27M	140.15M	133.33M	-21.42M
	Operating Cash Flow
388.07M	343.87M	330.25M	240.21M	189.29M	31.14M
	Investing Cash Flow
-198.17M	-208.71M	-339.99M	-506.57M	-90.92M	-52.28M
	Financing Cash Flow
-135.36M	-105.00M	-141.42M	135.72M	-10.25M	57.85M

Planet Fitness Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 105 is above the 20-day moving average (MA) of 103.86, above the 50-day MA of 99.03, and above the 200-day MA of 95.03, indicating a bullish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 50.97 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
OSW	74 Outperform	$1.98B	30.34	12.80%	0.86%	9.80%	89.42%
LTH	73 Outperform	$5.96B	28.36	8.24%	―	18.58%	169.49%
PLNT	64 Neutral	$8.84B	49.79	-79.88%	―	10.32%	20.44%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
PTON	55 Neutral	$2.76B	―	58.47%	―	-6.35%	79.04%
MODG	54 Neutral	$1.55B	―	-46.00%	―	-1.74%	-2020.38%
XPOF	51 Neutral	$403.16M	―	22.27%	―	-3.17%	-194.72%

Planet Fitness Corporate Events

Planet Fitness Approves Key Amendments at Annual Meeting

On May 6, 2025, Planet Fitness held its Annual Meeting where stockholders approved several significant amendments to the company’s Second Restated Certificate of Incorporation. These amendments included the removal of supermajority voting requirements, the elimination of obsolete provisions, and the limitation of liability for certain officers. Additionally, stockholders elected three directors, ratified KPMG LLP as the independent registered public accounting firm for 2025, and approved the 2025 Omnibus Incentive Plan. However, a stockholder proposal regarding the adoption of an EEO-1 report disclosure policy was not approved.

The most recent analyst rating on (PLNT) stock is a Hold with a $99.00 price target. To see the full list of analyst forecasts on Planet Fitness stock, see the PLNT Stock Forecast page.

Planet Fitness Unveils New Investor Presentation

On May 9, 2025, Planet Fitness plans to use a new investor presentation in meetings with investors and analysts, which will be available online. The company reported strong financial performance in Q1 2025, with a 6.1% increase in same club sales and an 11.5% revenue growth. Planet Fitness continues to expand its market presence, leveraging its significant size and scale advantage, and remains focused on delivering shareholder value through disciplined capital allocation and a proven business model.