PLNT

Planet Fitness Inc - Ordinary Shares - Class A

Consumer


Presented:02/28/2023
Price:$81.05
Cap:$6.76B
Current Price:$82.77
Cap:$7.00B

Presented

Date02/28/2023
Price$81.05
Market Cap$6.76B
Ent Value$8.49B
P/E Ratio68.86x
Book ValueN/A
Div Yield0%
Shares O/S83.42M
Ave Daily Vol917,155
Short Int4.49%

Current

Price$82.77
Market Cap$7.00B
Planet Fitness, Inc. engages in the operation and franchising of fitness centers. It operates through the following segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment includes operations related to the company's franchising business in the United States, Puerto Rico, Canada, the Dominican Republic, Panama, Mexico, and Australia. The Corporate-Owned Stores segment comprises operations with respect to all Corporate-owned stores throughout the United States and Canada. The Equipment segment involves the sale of equipment to franchisee-owned stores. The company was founded by Michael Grondahl and Marc Grondahl in 1992 and is headquartered in Hampton, NH.

Publicly traded companies mentioned herein: Planet Fitness Inc (PLNT)

Highlights

The presenter is short shares of Planet Fitness Inc (PLNT) based on weak medium- and long-term outlooks for the business that coincides with a stretched valuation. There are two main dynamics that can move the stock higher: net adds and store growth. PLNT’s net adds algorithm hasn’t changed since pre-COVID and there doesn’t seem to be much upside going forward. He also doesn’t see much room for unit growth to beat expectations given supply chain complications and worsening unit economics. Despite these bearish factors, the stock is trading at more than 20x consensus 2023 EBITDA, which is above the pre-COVID average. Using a reasonable high-teen EBITDA multiple, he sees 15% – 20% downside this year. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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