Planet Fitness Intrinsic Value Calculation – Pelham Capital Ltd. Cuts Planet Fitness Stock Position by $32.39 Million
March 29, 2024
🌥️Trending News
The company offers affordable gym memberships and promotes a “judgment-free” atmosphere, making it a popular choice for individuals looking to improve their physical health. Planet Fitness ($NYSE:PLNT) has seen significant growth in recent years, with a steady increase in revenue and expansion into new markets.
However, recent news reveals that Pelham Capital Ltd., a prominent investment firm, has cut its stock position in Planet Fitness by $32.39 million. This decision may have raised some eyebrows among investors and fitness enthusiasts alike. After all, Planet Fitness has been on a successful streak, with a strong presence in the growing fitness industry. With closures and restrictions on gyms and fitness centers, many companies, including Planet Fitness, have faced financial challenges. This could have caused concern for investors like Pelham Capital Ltd., leading them to cut their stock position to minimize potential losses. However, it’s also worth noting that Pelham Capital Ltd. has not entirely divested from Planet Fitness stock. This suggests that the investment firm still has faith in the company’s long-term potential. In fact, Planet Fitness has been actively adapting to the changing landscape of the fitness industry, offering virtual workouts and implementing safety protocols in their gyms to ensure the health and wellbeing of their members. Overall, while the news of Pelham Capital Ltd. cutting its stock position in Planet Fitness may have caused some unease, it’s important to consider the bigger picture. The company still maintains a strong presence in the fitness market and continues to adapt to challenges and changes. Only time will tell how this decision will impact both Pelham Capital Ltd. and Planet Fitness, but for now, it’s clear that both parties remain invested in the success of the company.
Market Price
Pelham Capital Ltd., a London-based hedge fund, has recently announced a significant reduction in their stock position in Planet Fitness. According to their latest filing with the Securities and Exchange Commission, Pelham Capital has sold off $32.39 million worth of Planet Fitness stock. This news comes just days after Planet Fitness’ stock opened at $59.0 and closed at the same price, showing a slight increase of 1.1% from the previous closing price of $58.4. While this may seem like a positive development for the popular fitness chain, the reduction in stock position by a major investor like Pelham Capital raises some questions about their future performance. The decision by Pelham Capital to sell off a significant portion of their Planet Fitness stock can be seen as a lack of confidence in the company’s growth potential. As a hedge fund, Pelham Capital’s primary goal is to maximize profits for their investors, and their decision to reduce their stock position indicates that they do not foresee significant gains in the near future. This news may also cause concern for other investors in Planet Fitness, as it can be seen as a signal of potential weakness in the company’s financial outlook. Pelham Capital is known for their strategic investments and their decision to cut ties with Planet Fitness may cause others to question the company’s future prospects. Despite this recent development, Planet Fitness’ stock has been performing well in the market overall.
However, with Pelham Capital’s significant reduction in their stock position, it will be interesting to see how the market reacts and if it will have an impact on the company’s future performance. Only time will tell if this move will affect Planet Fitness’ stock performance and overall success in the highly competitive fitness industry. 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 |
| 1.07k | 138.31 | 12.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Planet Fitness. More…
| Operations | Investing | Financing |
| 330.25 | -339.99 | -141.42 |
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 |
| 2.97k | 3.09k | -1.33 |
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 |
| 38.1% | 65.9% | 27.5% |
| FCF Margin | ROE | ROA |
| 18.1% | -134.8% | 6.2% |
Analysis – Planet Fitness Intrinsic Value Calculation
As a financial analysis firm, we at GoodWhale have conducted an in-depth examination of the wellness of PLANET FITNESS. Our research has resulted in a fair value estimate for PLANET FITNESS shares of $102.1, based on our proprietary Valuation Line. This indicates that the current stock price of $59.0 is undervalued by 42.2%. Our valuation takes into account various factors such as the company’s financial performance, growth potential, and competitive landscape. We believe that PLANET FITNESS has a strong foundation and has been consistently growing in the health and wellness industry. This is evident from their increasing revenues and expanding customer base. Furthermore, we see potential for future growth as PLANET FITNESS continues to expand its services and locations, making it a strong competitor in the fitness market. With their affordable pricing and inclusive approach, PLANET FITNESS appeals to a broad customer base, positioning them for continued success. Based on our analysis, we believe that the current stock price does not accurately reflect the true value of PLANET FITNESS. In fact, we see it as significantly undervalued, providing investors with a potential opportunity for a strong return on investment. Overall, our research indicates that PLANET FITNESS is a sound investment choice for those looking to enter the health and wellness sector. With its solid financials, growth potential, and undervalued stock price, we believe that PLANET FITNESS has the potential to deliver positive returns for its shareholders in the long term. More…
Peers
Planet Fitness Inc is in competition with Destination Maternity Corp, Tractor Supply Co, and Accel Entertainment Inc. Each company is vying for a share of the market and the customer base. Each company has its own strengths and weaknesses, and each is trying to get an edge over the others.
– Destination Maternity Corp ($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
Pelham Capital Ltd. is an investment management firm that recently disclosed a stock position of $32.39 million in Planet Fitness, Inc. This represents a decrease in their holdings of the company’s stock. Planet Fitness operates a chain of fitness centers throughout the United States and Canada. Pelham Capital’s decision to reduce their stake in the company may be indicative of their outlook on the stock’s performance. Investors may want to keep an eye on Pelham Capital’s future moves, as they could potentially provide insight into the trajectory of Planet Fitness’ stock.
