NYSE:PLNT

Stock Analysis Report

Executive Summary

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness name.


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has Planet Fitness's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PLNT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

48.6%

PLNT

15.5%

US Hospitality

10.5%

US Market


1 Year Return

-26.6%

PLNT

-41.4%

US Hospitality

-11.5%

US Market

Return vs Industry: PLNT exceeded the US Hospitality industry which returned -41.4% over the past year.

Return vs Market: PLNT underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

PLNTIndustryMarket
7 Day48.6%15.5%10.5%
30 Day-30.0%-35.2%-15.4%
90 Day-33.2%-46.5%-21.4%
1 Year-26.6%-26.6%-39.8%-41.4%-9.6%-11.5%
3 Year161.7%161.7%-29.3%-34.2%12.6%5.4%
5 Yearn/a-23.1%-31.6%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Planet Fitness undervalued compared to its fair value and its price relative to the market?

35.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PLNT ($50.42) is trading above our estimate of fair value ($26.2)

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


Price To Earnings Ratio

PE vs Industry: PLNT is poor value based on its PE Ratio (35.5x) compared to the Hospitality industry average (12.7x).

PE vs Market: PLNT is poor value based on its PE Ratio (35.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: PLNT is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: PLNT has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Planet Fitness forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLNT's forecast earnings growth (18% per year) is above the savings rate (1.7%).

Earnings vs Market: PLNT's earnings (18% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: PLNT's earnings are forecast to grow, but not significantly.

Revenue vs Market: PLNT's revenue (10.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PLNT's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PLNT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Planet Fitness performed over the past 5 years?

42.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLNT has high quality earnings.

Growing Profit Margin: PLNT's current net profit margins (18.4%) are higher than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: PLNT's earnings have grown significantly by 42.2% per year over the past 5 years.

Accelerating Growth: PLNT's earnings growth over the past year (33.7%) is below its 5-year average (42.2% per year).

Earnings vs Industry: PLNT earnings growth over the past year (33.7%) exceeded the Hospitality industry 1.7%.


Return on Equity

High ROE: PLNT's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Planet Fitness's financial position?


Financial Position Analysis

Short Term Liabilities: PLNT has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PLNT has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PLNT has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PLNT's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: PLNT's debt is not well covered by operating cash flow (12%).

Interest Coverage: PLNT's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: PLNT has a low level of unsold assets or inventory.

Debt Coverage by Assets: PLNT has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Planet Fitness's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if PLNT'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 PLNT'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?

1.8yrs

Average management tenure


CEO

Chris Rondeau (46yo)

7.17s

Tenure

US$4,364,719

Compensation

Mr. Christopher J. Rondeau, also known as Chris, has been the Chief Executive Officer of Planet Fitness, Inc. since January 2013 and served as its Chief Operating Officer since 2003. Mr. Rondeau serves as  ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD4.36M) is about average for companies of similar size in the US market ($USD5.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Rondeau
CEO & Director7.17yrsUS$4.36m0.086% $3.8m
Dorvin Lively
President2.92yrsUS$2.50m0.035% $1.5m
Craig Miller
Chief Digital & Information Officer2.58yrsUS$801.38k0.0095% $423.1k
Thomas Fitzgerald
Chief Financial Officer0.17yrno data0.0037% $167.2k
Brian O'Donnell
VP & Chief Accounting Officer0.17yrno data0.0018% $78.9k
Justin Vartanian
General Counsel & Secretary2.25yrsno datano data
McCall Gosselin
Senior Vice President of Communications and Corporate Social Responsibilityno datano datano data
Ray Miolla
Chief Development Officer1.75yrsno datano data
Jeremy Tucker
Chief Marketing Officer0.33yrno datano data
Kathy Gentilozzi
Chief People Officer0.67yrno datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Management: PLNT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Rondeau
CEO & Director7.17yrsUS$4.36m0.086% $3.8m
Frances Rathke
Independent Director3.58yrsUS$149.97k0.013% $574.3k
Craig Benson
Director2.67yrsUS$129.97k0.044% $2.0m
David Berg
Independent Director4.5yrsUS$149.46k0.0095% $425.3k
Cambria Dunaway
Independent Director2.42yrsUS$129.99k0.0087% $387.5k
Stephen Spinelli
Independent Chairman of the Board2.83yrsUS$207.47k0.013% $574.7k
Enshalla Anderson
Independent Director0.083yrno datano data

2.8yrs

Average Tenure

58yo

Average Age

Experienced Board: PLNT's board of directors are not considered experienced ( 2.8 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: PLNT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Planet Fitness, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Planet Fitness, Inc.
  • Ticker: PLNT
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Implied Market Cap: US$4.459b
  • Market Cap: US$4.185b
  • Shares outstanding: 88.43m
  • Website: https://www.planetfitness.com

Number of Employees


Location

  • Planet Fitness, Inc.
  • 4 Liberty Lane West
  • Hampton
  • New Hampshire
  • 3842
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLNTNYSE (New York Stock Exchange)YesClass A Common StockUSUSDAug 2015
3PLDB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 2015
0KJDLSE (London Stock Exchange)YesClass A Common StockGBUSDAug 2015

Biography

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness name. It operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment is involved in franchising business in the United States, Puerto Rico, Canada, the Dominican Republic, Panama, Mexico, and Australia. The Corporate-Owned Stores segment operates corporate-owned stores in the United States and Canada. The Equipment segment engages in the sale of fitness equipment to franchisee-owned stores in the United States. As of December 31, 2019, the company had 2,001 stores, including 1,903 franchised and 98 corporate-owned stores in the District of Columbia, Puerto Rico, Canada, the Dominican Republic, Panama, Mexico, and Australia. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 04:40
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.