Planet Fitness Intrinsic Value – PLANET FITNESS Reports Positive Earnings for Q2 of FY2023
August 18, 2023
☀️Earnings Overview
PLANET FITNESS ($NYSE:PLNT) reported total revenue of USD 286.5 million and net income of USD 41.1 million for the second quarter of FY2023, marking a year-over-year increase of 27.6% and 84.2%, respectively, on June 30th, 2023.
Price History
On Thursday, PLANET FITNESS reported positive earnings for Q2 of FY2023, with their stock opening at $64.0 and closing at $62.2, a drop of 6.1% from the previous closing price of 66.2. Despite the decreased price, PLANET FITNESS had a profitable quarter with increased revenue and strong consumer demand. In addition to their positive financial results, PLANET FITNESS also announced plans to expand its network of clubs in the US and Canada. This expansion is likely to further boost PLANET FITNESS’s revenue and profitability in the future.
Overall, PLANET FITNESS reported a solid quarter of earnings with increased revenue and profits, as well as plans to expand its network of clubs. Although its stock dropped 6.1%, investors remain optimistic about PLANET FITNESS’s long-term prospects and ability to reach new heights in terms of revenue and profits. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Planet Fitness. More…
| Total Revenues | Net Income | Net Margin |
| 1.03k | 124.44 | 12.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Planet Fitness. More…
| Operations | Investing | Financing |
| 287.27 | -241.28 | -193.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Planet Fitness. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.85k | 3.06k | -2.4 |
Key Ratios Snapshot
Some of the financial key ratios for Planet Fitness are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.3% | 26.5% | 27.0% |
| FCF Margin | ROE | ROA |
| -23.3% | -98.8% | 6.1% |
Analysis – Planet Fitness Intrinsic Value
GoodWhale has conducted a financial analysis of PLANET FITNESS, with the aim of determining its intrinsic value. Our proprietary Valuation Line revealed that the intrinsic value of PLANET FITNESS share is approximately $123.8. However, at the time of writing, PLANET FITNESS stock is being traded at $62.2, which is significantly lower than its intrinsic value. This means that the stock is currently undervalued by 49.7%. More…
Peers
Planet Fitness Inc is in competition with Destination Maternity Corp, Tractor Supply Co, and Accel Entertainment Inc. Each company is vying for a share of the market and the customer base. Each company has its own strengths and weaknesses, and each is trying to get an edge over the others.
– Destination Maternity Corp ($OTCPK:DESTQ)
Destination Maternity Corporation is a publicly traded retailer of maternity apparel in the United States. The Company operates through two segments: Motherhood Maternity(R) and A Pea in the Pod(R). As of October 28, 2017, the Company operated 1,948 retail locations, of which 1,060 were Motherhood Maternity stores, 514 were Destination Maternity stores, 274 were A Pea in the Pod stores and 100 were leased departments located within department stores and baby specialty stores. The Company’s retail locations are located in the United States, Puerto Rico, Canada and the United Kingdom. The Company offers a variety of apparel, including casual wear, work-out wear, sleepwear, lingerie and accessories. The Company also offers a line of nursing apparel and a line of children’s clothing.
– Tractor Supply Co ($NASDAQ:TSCO)
Tractor Supply Company is an American retail chain of stores that offer products for home improvement, agriculture, lawn and garden maintenance, and livestock, equine and pet care. It operates more than 2,000 stores in the United States.
Tractor Supply’s market cap is $23.79 billion as of 2022. The company’s return on equity is 45.88%. Tractor Supply is a leading retailer in the United States, offering products for home improvement, agriculture, lawn and garden maintenance, and livestock, equine and pet care. The company operates more than 2,000 stores across the country.
– Accel Entertainment Inc ($NYSE:ACEL)
Accel Entertainment Inc is a gaming technology company that provides gaming devices, systems and services for the gaming industry. The company has a market capitalization of $842.69 million and a return on equity of 32.45%. Accel Entertainment Inc provides gaming devices, systems and services for the gaming industry. The company offers gaming devices, systems and services for the gaming industry.
Summary
Planet Fitness reported its earnings results for the second quarter of FY2023, revealing total revenue of USD 286.5 million and net income of USD 41.1 million, both of which showed significant year-over-year growth. Despite the strong numbers, the stock price moved down on the day. For investors, this could be an opportunity to enter the stock at a lower price, given the positive earnings report. The long-term prospects for Planet Fitness remain strong, as the company’s growth has been driven by robust customer acquisition and retention.
In addition, Planet Fitness is well-positioned to benefit from the continued growth in the health and wellness industry and increase its competitive advantage.
