* Note: Prices are in Million (M) USD.
Description:
Planet Fitness, Inc., franchises and operates gyms under the Planet Fitness brand. The company is headquartered in Hampton, New Hampshire.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $336 M
Debt : $2,595 M
EBITDA : $534 M
Net Debt (Debt - Cash): $2,259 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Leisure
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 33.38
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $92 M
Average Revenue: $556 M
Revenue Converted To Free Cash Flow (%): 16.5%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,182 M
Revenue 4 Years Ago (2020-12-31): $407 M
Last 5 Years Average Revenue Growth: 38%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $86 M
Share Count 5 Years Ago (2020-12-31): $80 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.50
Trailing 12-Month Earnings Per Share (EPS): $2.90
Average Earnings Per Share (EPS): $3.20
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Insufficient valid ROE years (found 2; need ≥ 3). Dropping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $107
52-Week Low: $78
Threshold Price (15% Above 52-Week Low): $89
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $8,918 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 13 points to above Planet Fitness Inc (PLNT) stock.
Last 8 Years Avg PE 39.83, Fair Value PE 12, Industry Based PE 20, Growth Based PE 38, RCFC Based PE 25.24, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 25.36. Value-Trades has assined P/E value 25.36. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.2.
The fair value of Planet Fitness Inc (PLNT) stock should be (25.36 x $3.2) = $81.15.
