Peloton Interactive Stock Fair Value Calculator – Peloton Interactive Recalls 2.2M Exercise Bikes Amid Safety Concerns
May 13, 2023
Trending News ☀️
Peloton Interactive ($NASDAQ:PTON), a global interactive fitness company, has recently come under scrutiny after recalling 2.2 million of its exercise bikes over safety concerns. The recall has had immediate effects on the company’s stock price, which has seen a decrease in the wake of the announcement. Peloton Interactive is best known for its interactive cycling classes, live and on-demand. Its exercise bikes are seen as an important part of the company’s offering, allowing members to join its rides from home. In light of the recall, the company has advised that members should stop using the affected bikes until they have been inspected and confirmed to be safe. The recall was issued in response to reports of potential seat hazards which could lead to serious injury. Peloton has since released a statement saying that it is working with its manufacturers to identify the root cause of the safety issue and to put measures in place to ensure that all of its exercise bikes are safe for use. At this time, it remains unclear as to what course of action will be taken in response to the recall, and what impact this will have on the stock price of Peloton Interactive.
However, it is clear that the company is taking this matter seriously and is doing all it can to ensure its customers’ safety.
Stock Price
On Thursday, PELOTON INTERACTIVE recalled 2.2 million of their exercise bikes amid safety concerns. This has caused a significant drop in their stock price, with it opening at $6.9 and closing at the same price, 8.9% lower than the last closing price of 7.5. The recall is due to safety concerns over the pedals on the bike, which can break and cause lacerations. PELOTON INTERACTIVE has instructed customers to stop using the bike immediately, and contact them for a full refund. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Peloton Interactive. More…
| Total Revenues | Net Income | Net Margin |
| 2.84k | -2.28k | -58.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Peloton Interactive. More…
| Operations | Investing | Financing |
| -674.4 | -121.1 | 776.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Peloton Interactive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.02k | 3.14k | 0.09 |
Key Ratios Snapshot
Some of the financial key ratios for Peloton Interactive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.3% | – | -76.6% |
| FCF Margin | ROE | ROA |
| -28.5% | 2812.2% | -45.0% |
Analysis – Peloton Interactive Stock Fair Value Calculator
At GoodWhale, we have conducted an analysis of PELOTON INTERACTIVE‘s fundamentals. Our proprietary Valuation Line reveals that the intrinsic value of PELOTON INTERACTIVE share is around $42.5. Currently, PELOTON INTERACTIVE stock is traded at $6.9, which suggests that it is highly undervalued by 83.7%. We believe that investors should take advantage of this great investment opportunity while they still can. More…
Peers
Peloton Interactive Inc is a company that designs, manufactures, and sells fitness products. The company’s products include a line of fitness equipment, such as treadmills, stationary bicycles, and rowing machines, as well as a line of fitness apparel and accessories. Peloton Interactive Inc has a number of competitors, including City Sports and Recreation PCL, Lindblad Expeditions Holdings Inc, and Vista Outdoor Inc.
– City Sports And Recreation PCL ($SET:CSR)
City Sports And Recreation PCL is a publicly traded company with a market capitalization of 1.32 billion as of 2022. The company has a return on equity of 1.21%. City Sports And Recreation PCL is engaged in the business of providing sports and recreation facilities and services. The company operates in Thailand and has a network of sport and recreation facilities that includes swimming pools, fitness centers, and tennis courts.
– Lindblad Expeditions Holdings Inc ($NASDAQ:LIND)
Lindblad Expeditions Holdings Inc is a global provider of expedition cruises and adventure travel experiences. The company operates a fleet of purpose-built expedition ships and offers itineraries to destinations in Antarctica, the Arctic, Galápagos, Alaska, the South Pacific, Europe, and South America.
Lindblad Expeditions Holdings Inc has a market cap of 390.55M as of 2022. The company has a strong ROE of 95.66%, indicating that it is efficient in generating profits for shareholders. Lindblad Expeditions Holdings Inc is a great company for investors looking to profit from the growth of the expedition cruise industry.
– Vista Outdoor Inc ($NYSE:VSTO)
Vista Outdoor Inc is a publicly traded company with a market capitalization of 1.49 billion as of 2022. The company has a return on equity of 35.55%. Vista Outdoor is engaged in the design, manufacture and marketing of consumer products in the outdoor sports and recreation markets. The company’s product portfolio includes firearms, ammunition, archery, fishing, hunting, and camping products.
Summary
Peloton Interactive Inc. has recently seen a decrease in its stock price due to a recall of 2.2 million exercise bikes with a potential seat hazard. For investors, it is important to understand the financial impact of this recall and the potential impact to future earnings.
Additionally, the company could also face future costs due to potential lawsuits and other liabilities. Furthermore, the recall has potentially tarnished the brand image of Peloton and could negatively impact future sales. Investors should further investigate into the company’s financials, its current market position and its potential growth opportunities to determine if investing in Peloton is a good idea.
