Company Overview
Planet Fitness, Inc. franchises and operates fitness centers under the Planet Fitness brand, generating revenue through its Franchise, Corporate-Owned Clubs, and Equipment segments. The company operates within the Consumer Cyclical sector and the Leisure industry, positioning itself in the broader economy of consumer discretionary spending. Its current market capitalization stands at $6.33B, supported by annual revenue of $1.24B and a workforce of 4,393 employees. These valuation and revenue figures indicate that the firm has established a significant market presence, allowing it to leverage its franchise model to scale operations while maintaining a substantial operational footprint. The combination of a large employee base and a multi-billion dollar market cap suggests a mature business structure capable of generating consistent cash flows across its three distinct segments.
Financial Health
The company reported revenue of $1.24B for the trailing twelve months, with net income reaching $219.10M and EBITDA totaling $549.30M. The substantial gap between the $1.24B revenue figure and the $219.10M net income reveals a cost structure that retains nearly 17.7% of top-line sales as profit after all expenses. Free cash flow stands at $183.96M, which indicates a strong capacity for internal capital generation and provides financial flexibility for strategic initiatives or debt repayment. Gross margin is reported at 59.5%, reflecting high scalability in its service delivery model, while the operating margin sits at 30.0% and the profit margin at 17.7%, demonstrating effective cost control at both the operational and net levels. Total cash holdings of $452.41M are compared against total debt of $2.95B, showing that liquidity does not fully cover short-term obligations, and the debt-to-equity ratio is listed as N/A. The current ratio of 2.11 indicates a robust short-term liquidity position, suggesting the company can meet its short-term liabilities with more than double its current assets. Return on Equity is listed as N/A, while Return on Assets is 8.0%, which provides insight into how efficiently management utilizes the company's asset base to generate earnings relative to total assets.
Valuation Assessment
The trailing P/E ratio is 29.02, whereas the forward P/E is 18.73, implying that the market expects earnings to grow significantly in the coming year to justify the lower forward multiple. The price-to-book ratio stands at -12.67, indicating a valuation metric that deviates from standard comparisons due to negative book value, likely reflecting accumulated retained earnings or specific accounting adjustments. The price-to-sales ratio is 5.12, and the EV/EBITDA multiple is 15.57, suggesting that the market values the company at a premium relative to its sales and earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week high of $114.47 and a 52-week low of $73.01, and without the current real-time price, the exact percentage position within this range cannot be calculated from the provided facts alone. However, the beta of 1.30 indicates that the stock price is expected to be 30% more volatile than the broader market, meaning it tends to amplify market movements.
Growth & Income
Revenue growth for the trailing twelve months is 10.7%, while earnings growth is 32.5%, indicating that profitability is expanding at a rate nearly three times faster than top-line sales. This divergence suggests the company is experiencing significant operating leverage as revenue increases, leading to a more than proportional rise in net income. The dividend yield is N/A, and the payout ratio is 0.0%, confirming that the company does not currently distribute cash to shareholders but instead retains earnings to fuel expansion or pay down debt. Consequently, the overall growth and income profile is characterized by aggressive reinvestment of profits rather than current income distribution, prioritizing capital growth for shareholders over immediate yield.