Planet Fitness Inc. Common Stock (PLNT)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $162 million in annual free cash flow (2.9% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Planet Fitness Inc. Common Stock is a small-cap consumer cyclical company valued at $5.5 billion. The business generates $1.3 billion in annual revenue with a 4.7% net margin and $162 million in free cash flow. From a quality standpoint, Planet shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is reasonably priced at 19.0x earnings, with PEG of 0.67 suggests growth is underpriced. Growth dynamics show revenue growing at 10.5% and profit growth of 28.3%. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $162 million in annual free cash flow (2.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer