NasdaqGS:PTON

Stock Analysis Report

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Market Cap

US$32.2b

Last Updated

2021/06/22 00:26 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

High growth potential with adequate 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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PTON's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

PTON

-0.7%

US Leisure

-0.1%

US Market


1 Year Return

103.9%

PTON

69.1%

US Leisure

39.0%

US Market

Return vs Industry: PTON exceeded the US Leisure industry which returned 71.1% over the past year.

Return vs Market: PTON exceeded the US Market which returned 39% over the past year.


Shareholder returns

PTONIndustryMarket
7 Day-3.6%-0.7%-0.1%
30 Day7.1%2.8%2.6%
90 Day-4.6%6.7%8.0%
1 Year103.9%103.9%71.7%69.1%41.2%39.0%
3 Yearn/a36.3%29.3%62.4%52.3%
5 Yearn/a42.9%31.0%132.3%106.2%

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?

147.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PTON ($108.11) is trading above our estimate of fair value ($59.21)

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 (147.2x) compared to the US Leisure industry average (19.8x).

PE vs Market: PTON is poor value based on its PE Ratio (147.2x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: PTON is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: PTON is overvalued based on its PB Ratio (16.2x) compared to the US Leisure industry average (4.6x).


Future Growth

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

54.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTON's forecast earnings growth (54% per year) is above the savings rate (2%).

Earnings vs Market: PTON's earnings (54% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: PTON's revenue (22.4% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: PTON's revenue (22.4% 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 low in 3 years time (19.4%).


Past Performance

How has Peloton Interactive performed over the past 5 years?

51.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTON has high quality earnings.

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 51% 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 (95.5%).


Return on Equity

High ROE: PTON's Return on Equity (10.7%) is considered low.


Financial Health

How is Peloton Interactive's financial position?


Financial Position Analysis

Short Term Liabilities: PTON's short term assets ($3.5B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: PTON's short term assets ($3.5B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: PTON's debt to equity ratio (41.2%) is considered high.

Reducing Debt: Insufficient data to determine if PTON's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PTON's debt is well covered by operating cash flow (83.6%).

Interest Coverage: PTON earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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?

6.7yrs

Average management tenure


CEO

John Foley (49 yo)

9yrs

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 ($USD11.36M) is about average for companies of similar size in the US market ($USD11.28M).

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


Leadership Team

Experienced Management: PTON's management team is seasoned and experienced (6.7 years average tenure).


Board Members

Experienced Board: PTON's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 5.3%.


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$32.248b
  • Shares outstanding: 298.29m
  • 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


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 Analysis2021/06/22 00:26
End of Day Share Price2021/06/21 00:00
Earnings2021/03/31
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.