Planet Fitness Intrinsic Value – Planet Fitness Reports Profitable Second Quarter of FY2023
August 7, 2023
☀️Earnings Overview
Planet Fitness ($NYSE:PLNT) reported their second quarter of FY2023 earnings results as of June 30 2023, resulting in total revenue of USD 286.5 million, a 27.6% increase from the same quarter in the previous fiscal year. Net income had an impressive 84.2% increase, reaching USD 41.1 million.
Market Price
The stock opened at a high of $64.0 before closing at $62.2, representing a drop of 6.1% from the previous closing price of 66.2. Despite the decline in stock price, PLANET FITNESS was able to report a very profitable quarter. These results were driven by strong growth in membership numbers as well as increased demand for their products and services, such as personal training sessions and classes.
Furthermore, due to their well-known commitment to customer service, PLANET FITNESS was also able to increase their customer retention rate by 3%, helping further improve their bottom line. The company’s strong financial performance and customer focus is sure to be a boon for investors as they look ahead to the future. 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
At GoodWhale, we conducted an analysis of PLANET FITNESS‘s wellbeing to provide a comprehensive understanding of the company. Through our proprietary Valuation Line, we calculated the fair value of PLANET FITNESS share to be around $117.1. However, currently PLANET FITNESS stock is traded at $62.2, indicating that the stock is undervalued by 46.9%. This presents a great opportunity for investors to buy into PLANET FITNESS at a more attractive price. More…
Peers
Planet Fitness Inc is in competition with Destination Maternity Corp, Tractor Supply Co, and Accel Entertainment Inc. Each company is vying for a share of the market and the customer base. Each company has its own strengths and weaknesses, and each is trying to get an edge over the others.
– Destination Maternity Corp ($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
Investors were initially optimistic about PLANET FITNESS‘s second quarter earnings results for the fiscal year ending June 30, 2023. Total revenues increased by 27.6% compared to the same period last year, and net income increased by 84.2%. Despite the strong results, the stock price dropped on the same day as the announcement.
This could be due to investors expecting more from PLANET FITNESS and the stock was overvalued prior to the earnings release. Nevertheless, investors should keep an eye on the company’s outlook going forward as further strong financial performance could lead to an increase in stock price.
