NasdaqGS:PTON

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has Peloton Interactive's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PTON is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: PTON's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

6.3%

PTON

4.0%

US Leisure

0.6%

US Market


1 Year Return

234.6%

PTON

66.7%

US Leisure

22.7%

US Market

Return vs Industry: PTON exceeded the US Leisure industry which returned 61.1% over the past year.

Return vs Market: PTON exceeded the US Market which returned 21% over the past year.


Shareholder returns

PTONIndustryMarket
7 Day6.3%4.0%0.6%
30 Day1.7%8.8%13.1%
90 Day23.0%15.3%4.5%
1 Year234.6%234.6%69.7%66.7%25.5%22.7%
3 Yearn/a15.9%9.4%49.0%39.1%
5 Yearn/a20.7%9.3%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is Peloton Interactive's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Peloton Interactive undervalued compared to its fair value and its price relative to the market?

668.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PTON ($112.03) is trading above our estimate of fair value ($65.71)

Significantly Below Fair Value: PTON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PTON is poor value based on its PE Ratio (668.7x) compared to the US Leisure industry average (24.9x).

PE vs Market: PTON is poor value based on its PE Ratio (668.7x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: PTON is poor value based on its PEG Ratio (13.6x)


Price to Book Ratio

PB vs Industry: PTON is overvalued based on its PB Ratio (18.2x) compared to the US Leisure industry average (4.4x).


Next Steps

Future Growth

How is Peloton Interactive forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

49.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTON's forecast earnings growth (49.2% per year) is above the savings rate (2.2%).

Earnings vs Market: PTON's earnings (49.2% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PTON's revenue (24.5% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: PTON's revenue (24.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PTON's Return on Equity is forecast to be high in 3 years time (23.1%)


Next Steps

Past Performance

How has Peloton Interactive performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTON has a large one-off loss of $60.4M impacting its September 30 2020 financial results.

Growing Profit Margin: PTON became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PTON has become profitable over the past 5 years, growing earnings by 13.2% per year.

Accelerating Growth: PTON has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PTON has become profitable in the last year, making it difficult to compare its past year earnings growth to the Leisure industry (22.4%).


Return on Equity

High ROE: PTON's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Peloton Interactive's financial position?


Financial Position Analysis

Short Term Liabilities: PTON's short term assets ($2.6B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: PTON's short term assets ($2.6B) exceed its long term liabilities ($582.8M).


Debt to Equity History and Analysis

Debt Level: PTON is debt free.

Reducing Debt: PTON had no debt 5 years ago.

Debt Coverage: PTON has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PTON has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Peloton Interactive current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PTON's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PTON's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PTON's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PTON's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PTON's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

John Foley (49 yo)

8.42yrs

Tenure

US$11,356,767

Compensation

Mr. John Paul Foley Co-Founded Peloton Interactive, Inc. in 2012 and has been its Chief Executive Officer since June 2012. Mr. Foley was the President of Barnes & Noble eCommerce at Barnes & Noble, Inc. fr...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD11.36M) is about average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Foley
Co-Founder8.42yrsUS$11.36m2.14%
$ 702.0m
William Lynch
President & Director1.25yrsUS$10.21m0.88%
$ 287.6m
Thomas Cortese
Co-Founder8.83yrsUS$5.99m0.40%
$ 132.0m
Hisao Kushi
Co-Founderno dataUS$7.27m0.34%
$ 112.2m
Jill Woodworth
Chief Financial Officer2.58yrsUS$7.19m0%
$ 0
Graham Stanton
Co-Founder & Senior VP of Business Intelligence8.83yrsno datano data
Yony Feng
Co-Founder8.83yrsno datano data
Allen Klingsick
Principal Accounting Officer0.58yrno data0.000070%
$ 22.9k
David Strickland
Vice President of Technologyno datano datano data
Peter Stabler
Senior Vice President of Investor Relationsno datano datano data
Savannah Stevenson
Head of Compliance and Risk1.42yrsno datano data
Jessica Kleiman
Senior Vice President of Global Communicationsno datano datano data

6.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: PTON's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Foley
Co-Founder8.42yrsUS$11.36m2.14%
$ 702.0m
William Lynch
President & Director1.25yrsUS$10.21m0.88%
$ 287.6m
Jay Hoag
Independent Director2.25yrsUS$192.83k0%
$ 0
Erik Blachford
Lead Independent Directorno dataUS$192.83k0.16%
$ 51.4m
Howard Draft
Independent Director5.58yrsUS$192.83k0.26%
$ 86.0m
Jonathan Callaghan
Independent Director5.58yrsUS$192.83k0.32%
$ 104.6m
Pamela Thomas-Graham
Independent Director2.67yrsUS$192.83k0%
$ 0
Karen Boone
Independent Director1.83yrsUS$192.83k0.0059%
$ 1.9m

2.7yrs

Average Tenure

52yo

Average Age

Experienced Board: PTON's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PTON insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

Peloton Interactive, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Peloton Interactive, Inc.
  • Ticker: PTON
  • Exchange: NasdaqGS
  • Founded: 2012
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$32.772b
  • Shares outstanding: 292.53m
  • Website: https://www.onepeloton.com

Number of Employees


Location

  • Peloton Interactive, Inc.
  • 125 West 25th Street
  • 11th Floor
  • New York
  • New York
  • 10001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2ONBST (Boerse-Stuttgart)YesClass A common stockDEEURSep 2019
PTONNasdaqGS (Nasdaq Global Select)YesClass A common stockUSUSDSep 2019
2ONDB (Deutsche Boerse AG)YesClass A common stockDEEURSep 2019
PTON *BMV (Bolsa Mexicana de Valores)YesClass A common stockMXMXNSep 2019
0A46LSE (London Stock Exchange)YesClass A common stockGBUSDSep 2019

Biography

Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include tou...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:41
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.