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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2103
Positioning
Market Dominance
Services
Entertainment
$8.7B
Christopher J. Rondeau
Planet Fitness, Inc. operates through Franchise, Corporate-Owned Stores, and Equipment segments. As of December 31,2021, the company had 2,254 stores in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, and Australia.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = PLNT ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | 21.3% | 18.6% | 64.5% | 35.7% | 39.5% | 6.5% | 0.0% | 0.0x | $644M | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | 15.4% | 12.6% | 38.7% | 17.1% | 17.0% | -39.7% | 0.0% | 0.0x | $439M | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 28.1% | 16.8% | 48.1% | 23.8% | 18.5% | 78.6% | 0.0% | 37.0x | $220M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | 12.4% | 2.9% | 100.0% | 28.2% | 26.2% | 5.5% | 0.8% | 264.0x | $19.4B | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.6% | 7.8% | 43.8% | 7.4% | 5.9% | 31.2% | 0.0% | 0.0x | $857M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 18.0% | 4.6% | 97.3% | 52.2% | 32.7% | -3.4% | 0.0% | 271.0x | $8.0B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | 9.4% | 4.9% | 55.5% | 8.7% | 7.7% | 13.6% | 1.3% | 7.0x | $78.0B | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | 22.1% | 15.6% | 62.5% | 28.1% | 28.7% | -1.0% | 2.8% | 9.0x | $56.6B | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 21.4% | 8.0% | 100.0% | 10.0% | 7.5% | 14.1% | 0.0% | 27.0x | $1.8B | VS | |
$PLNT Planet Fitness, Inc. | 49 | 42 | 57 | 55 | 37.3x | 18.4x | -117.3% | 6.6% | 85.3% | 29.7% | 16.2% | 9.8% | 0.0% | - | $8.7B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.3% | 1.9% | 59.6% | 3.5% | 2.3% | 7.8% | 0.0% | 0.3x | - | REF |
Planet Fitness, Inc. (PLNT) receives a "Reduce" rating with a composite score of 49.4/100. It ranks #2103 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Direct cash return
Christopher J. Rondeau
Chief Executive Officer
Labor Force
2,800
42
40
90
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for PLNT
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for PLNT.
View All RatingsEarnings well-supported by fundamental cash flows
Material decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 42 | 39 | +3NEUTRAL |
| MOMENTUM | 55 | 56 | -1NEUTRAL |
| VALUATION | 57 | 63 | -6DRAG |
| INVESTMENT | 40 | 68 | -28DRAG |
| STABILITY | 90 | 96 | -6DRAG |
| SHORT INT | 31 | 17 | +14ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 3.8% vs WACC 7.8% (spread -3.9%)
GM 85% vs sector 60%, OM 30% vs sector 4%
Capital turnover 0.18x
Rev growth 10%, 10yr history
Interest coverage 4.1x, Net debt/EBITDA 12.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Planet Fitness, Inc. receives a Reduce rating from our analysis, with a composite score of 49.4/100 and 2 out of 5 stars, ranking #2103 out of 7,333 stocks. PLNT's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
PLNT's quality score of 42/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -117.3% (sector avg: 5.3%), gross margins of 85.3% (sector avg: 59.6%), net margins of 16.2% (sector avg: 2.3%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
PLNT's value score of 57/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 37.25x, an EV/EBITDA of 18.38x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 40/100, PLNT exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 9.8% vs. a sector average of 7.8% and a return on assets of 6.6% (sector: 1.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
PLNT demonstrates moderate momentum with a score of 55/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 9.8% year-over-year, while a beta of 0.48 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
Planet Fitness, Inc. earns an excellent stability score of 90/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.48. Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
Planet Fitness, Inc.'s short interest score of 31/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. At $8.7B (mid-cap), PLNT carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Planet Fitness, Inc. is a mid-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #2103 of 7,333 overall (71st percentile). Key comparisons include ROE of -117.3% trailing the 5.3% sector median and operating margins of 29.7% above the 3.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While PLNT currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
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Improvement in Short Int. (31) would have the largest impact on the composite score.
EV/EBITDA 57% ABOVE SECTOR MEDIAN
ROE 2309% BELOW SECTOR MEDIAN
Gross Margin 43% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate Planet Fitness, Inc. (PLNT) as a Reduce with a composite score of 49.4/100 at a current price of $82.27. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (90th percentile) and value (57th percentile), which together account for the majority of the composite score. All factors score above the 40th percentile, indicating no material weakness in the quantitative profile. We assign a Narrow Moat rating (41/100), Low uncertainty, and Poor capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
Planet Fitness, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 49.4/100 places it at rank #2103 in our full 7,333-stock universe. At $8.7B in market capitalization, Planet Fitness, Inc. is a mid-cap player in the Services space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue is growing at 10%, though momentum at the 55th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 85% (+25.7pp vs sector) narrow to operating margins of 30% (+26.2pp vs sector) and net margins of 16.2%, yielding a gross-to-net conversion rate of 19%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $82.27, Planet Fitness, Inc. is trading near fair value based on current fundamentals. Our value factor score of 57/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 37.3x (a 57% premium to the sector median of 23.7x), EV/EBITDA of 18.4x (at a premium), P/S of 6.1x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.
Gross margins of 85% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
The Reduce rating (composite 49.4/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
A P/E of 37.3x leaves little room for execution misses — any earnings disappointment could trigger a sharp multiple compression.
We assign a Low uncertainty rating to Planet Fitness, Inc.. The company exhibits strong financial stability with a beta of 0.48, and a stability factor in the 90th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
Specific risk factors that inform our assessment include: low beta of 0.48 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 90th percentile and quality factor at the 42th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 85% provide a buffer against cost pressures; above-average stability (90th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate Planet Fitness, Inc.'s capital allocation as Poor. Key concerns include low returns on equity (-117.3%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Planet Fitness, Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, Planet Fitness, Inc. receives a Reduce rating with a composite score of 49.4/100 (rank #2103 of 7,333). Our quantitative framework assigns a Narrow Moat (41/100, trend: stable), Low uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 57/100.
Our analysis does not support a constructive view on Planet Fitness, Inc. at this time. The combination of the current quantitative profile, low uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign Planet Fitness, Inc. a Narrow Moat rating with a composite moat score of 41/100. The ROIC-WACC spread of -3.9% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that Planet Fitness, Inc. can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being margin superiority at 18.9/20.
The strongest moat sources are margin superiority (18.9/20) and growth durability (11.3/20). GM 85% vs sector 60%, OM 30% vs sector 4%. Rev growth 10%, 10yr history. These pillars form the core of Planet Fitness, Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (4/20). Capital turnover 0.18x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect Planet Fitness, Inc.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 85% providing a solid profitability foundation, operating margins of 30% reflecting effective cost management, moderate revenue growth of 10%. The margin cascade from 85% gross to 30% operating to 16.2% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 42th percentile.
The margin profile shows gross margins of 85%, operating margins of 30%, net margins of 16.2%. Return metrics include ROE of -117.3% and ROA of 6.6%. Relative to the Services sector, gross margins are 25.7 percentage points above the sector median of 60%, and ROE of -117.3% compares to a sector median of 5.3%.
The balance sheet reflects revenue growth of 10%. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
Planet Fitness (PLNT) Q4 2025 earnings call recap: growth, club openings, Black Card upgrades, 2026 guidance, risks & AI initiatives.
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Planet Fitness, a gym chain, has seen its stock price surge 42% in the past year. While the company has significant growth potential, its current valuation may be a concern for some investors.