Citigroup Maintains ‘Buy’ Rating for Xponential Fitness Inc on May 8, 2023
May 11, 2023
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Xponential Fitness ($NYSE:XPOF) Inc. is a leading fitness and wellness company that focuses on delivering high-value experiences to meet the needs of customers in an ever-evolving fitness industry. On May 8, 2023, Fintel reported that Citigroup had maintained its Buy recommendation on Xponential Fitness Inc. stock. Citigroup’s research analysts believe that Xponential Fitness Inc. has a favorable outlook due to its diversified portfolio of fitness studios, online programs, and digital services. Citigroup has identified several key opportunities for Xponential Fitness Inc. to drive long-term growth, including their value-added digital offerings, their expansive network of studios, and their ability to capitalize on consumer trends such as health and wellness. They have also highlighted the company’s strong balance sheet and significant cash flow as a plus for investors.
Furthermore, Citigroup believes that the recent launch of their new virtual platform will help to further increase the company’s reach and appeal to a broader consumer base. Overall, Citigroup believes that Xponential Fitness Inc. is well-positioned for future growth and has maintained their Buy rating for the stock. They suggest that investors should consider investing in the company’s shares now to benefit from its potential upside in the future.
Stock Price
On the same day, XPONENTIAL’s stock opened at $28.8 but closed at $28.7, indicating a 0.8% decrease from its previous closing price of $28.9. This slight drop in the stock price is not indicative of any significant change in the company’s overall performance that could lead to a major adjustment in Citigroup’s rating. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Xponential Fitness. More…
| Total Revenues | Net Income | Net Margin |
| 265.28 | -30.11 | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Xponential Fitness. More…
| Operations | Investing | Financing |
| 60.13 | -14.79 | -32.96 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Xponential Fitness. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 484.3 | 763.05 | -6.79 |
Key Ratios Snapshot
Some of the financial key ratios for Xponential Fitness are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.8% | – | 8.9% |
| FCF Margin | ROE | ROA |
| 16.4% | -7.8% | 3.1% |
Analysis
GoodWhale conducted an analysis of XPONENTIAL FITNESS‘s financials and the results showed an intermediate health score of 5/10 based on its cashflows and debt. This indicates that XPONENTIAL FITNESS is likely to be able to ride out any crisis without the risk of bankruptcy. In terms of its performance, XPONENTIAL FITNESS is strong in growth, medium in profitability and weak in asset and dividend. We classified XPONENTIAL FITNESS as a ‘gorilla’ type of company, which is one that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors interested in XPONENTIAL FITNESS may be those who are looking for companies with strong competitive advantage, or those who are interested in growth stocks while being aware of the inherent risk. As XPONENTIAL FITNESS has an intermediate health score, investors should be mindful of the risk factors associated with such investments and look at other indicators such as its cashflows and debt. More…
Peers
The fitness industry is a competitive one, with many companies vying for a share of the market. Xponential Fitness Inc is one such company, and it competes with others such as Gambling.com Group Ltd, F45 Training Holdings Inc, and Fit After Fifty Inc. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which one is the best fit for their needs.
– Gambling.com Group Ltd ($NASDAQ:GAMB)
The Gambling.com Group Ltd is a publicly traded company with a market capitalization of 267.87 million as of 2022. The company has a return on equity of 8.07%. The Gambling.com Group Ltd is an online gambling and gaming company. The company operates a number of gambling and gaming websites, including gambling.com, sportsbook.com, and poker.com. The company also offers a range of other services, including online gaming, online casino, online sports betting, and online poker.
– F45 Training Holdings Inc ($NYSE:FXLV)
F45 Training Holdings Inc is a fitness company that offers group training classes. The company has a market cap of 293.47M and a ROE of -60.11%. The company offers a variety of fitness classes, including strength training, cardio, and HIIT classes.
Summary
XPonential Fitness Inc is a fitness company that has been receiving positive reviews from investors. Citigroup recently maintained its Buy recommendation for the stock. Analysts believe that XPonential Fitness is well positioned to capitalize on the increasing demand for health and wellness services. The company has a strong balance sheet and its products are backed by solid customer reviews.
It is expected to benefit from the growth in the fitness industry, as well as potential acquisitions and strategic partnerships. Overall, the stock is seen as an attractive long-term investment opportunity due to its growth potential, attractive valuation and solid fundamentals.
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