Planet Fitness
PLNT
$53.33
+3.15%
Planet Fitness, Inc. is a leading franchisor and operator of fitness centers, primarily in the United States, with a presence in Canada, Puerto Rico, Panama, Mexico, and Australia. The company operates through three segments: Franchise, Corporate-owned stores, and Equipment, with the majority of revenue generated from corporate-owned locations. As a dominant player in the value-priced fitness niche, Planet Fitness differentiates itself with its affordable membership model and 'Judgement Free Zone' brand identity. Currently, the stock is under intense scrutiny due to a significant decline in share price over the past year, driven by concerns over membership growth sustainability, rising competition, and macroeconomic pressures on consumer discretionary spending. Recent earnings have shown robust revenue growth, but investor sentiment remains cautious amid broader market volatility and a high valuation relative to near-term earnings.…
PLNT
Planet Fitness
$53.33
Investment Opinion: Should I buy PLNT Today?
Based on the analysis, PLNT is rated a Hold. The consensus analyst rating is Buy with an average target of $67.48, implying 24.5% upside, but the stock's poor price performance and high leverage warrant caution. The thesis is that the company's strong revenue growth and forward valuation provide a floor, but the high trailing PE and negative ROE limit upside potential.
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PLNT 12-Month Price Forecast
The AI assessment is neutral with medium confidence. The company has solid revenue growth and a reasonable forward valuation, but the high trailing PE and leveraged balance sheet create significant risk. The stock's poor price performance over the past year reflects these concerns. If the company can improve profitability and reduce debt, the outlook would improve, but until then, the risk-reward is balanced. A upgrade to bullish would require evidence of sustained earnings growth and improving ROE, while a downgrade to bearish would be triggered by a recession or a major competitive threat.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Planet Fitness's 12-month outlook, with a consensus price target around $67.54 and implied upside of +26.6% versus the current price.
Average Target
$67.54
0 analysts
Implied Upside
+26.6%
vs. current price
Analyst Count
—
covering this stock
Price Range
$49 - $106
Analyst target range
Planet Fitness is covered by 17 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.83 (where 1 is Strong Buy and 5 is Sell). The average price target is $67.48, implying an upside of 24.5% from the current price of $54.20. The distribution includes 10 Buy/Overweight ratings, 4 Hold/Neutral ratings, and 3 Sell/Underperform ratings, indicating a generally bullish sentiment but with some caution. The high target of $106.00 suggests that some analysts see significant upside potential, likely based on a successful membership growth strategy and margin expansion, while the low target of $49.20 reflects downside risks from competitive pressures and economic headwinds. Recent ratings actions have been mixed, with B of A Securities downgrading from Buy to Neutral and TD Cowen moving from Buy to Hold, while JP Morgan, UBS, and others maintained positive stances. The wide range between the low and high targets indicates high uncertainty about the company's future performance, but the overall consensus remains positive, with the average target implying a substantial upside from current levels.
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Bulls vs Bears: PLNT Investment Factors
Planet Fitness presents a classic value-versus-growth dilemma. On the bull side, revenue is accelerating at 21.9% YoY, the forward PE is a modest 14.8x, and analysts see 24.5% upside. On the bear side, the stock has lost half its value in a year, trades at a steep 41.4x trailing earnings, and carries a highly leveraged balance sheet. The most critical tension is whether the company can translate its strong revenue growth into sustained earnings growth that justifies the current valuation. If membership growth remains robust and margins expand, the stock could re-rate higher; if not, the high trailing PE and debt load could lead to further downside. Currently, the bear case has stronger evidence given the stock's poor performance and negative ROE, but the forward valuation suggests the market is already pricing in a recovery, making the risk-reward balanced.
Bullish
- Strong Revenue Growth Accelerating: Q1 2026 revenue grew 21.9% YoY to $337.2M, up from $276.7M in Q1 2025, indicating accelerating momentum. This growth is driven by corporate-owned store expansion and franchise royalties, showcasing the scalability of the business model.
- Forward PE Attractive at 14.8x: The forward PE of 14.8x is a 33% discount to the industry average of 22x, suggesting the market is pricing in a significant earnings rebound. With a PEG of 1.36x, the stock appears reasonably valued relative to its expected growth.
- Analyst Consensus Buy with 24.5% Upside: 17 analysts rate PLNT a Buy with an average target of $67.48, implying 24.5% upside from the current $54.20. The high target of $106 suggests potential for substantial gains if the company executes on its growth strategy.
- High Gross Margin of 82.6%: Gross margin stands at 82.6%, reflecting the asset-light franchise model and strong pricing power. This high margin provides a buffer against cost inflation and supports profitability.
Bearish
- Stock Down 49.3% Over Past Year: PLNT has declined 49.3% in the last year, significantly underperforming the S&P 500's +20.5% gain. This reflects deep investor pessimism about membership growth sustainability and competitive pressures.
- High Trailing PE of 41.4x: The trailing PE of 41.4x is an 88% premium to the industry average of 22x, indicating the stock is expensive based on current earnings. This leaves little room for error if earnings disappoint.
- Negative Return on Equity of -45.3%: ROE is -45.3%, driven by negative shareholder equity due to high debt levels. This financial leverage amplifies risk and could constrain future borrowing capacity.
- Debt-to-Equity Ratio of -6.0: The negative debt-to-equity ratio reflects a highly leveraged balance sheet, with total debt exceeding equity. This increases financial risk, especially if interest rates remain elevated.
PLNT Technical Analysis
Planet Fitness has been in a pronounced downtrend over the past year, with the stock price declining 49.3% from a year ago. The current price of $54.20 sits at 22.6% of its 52-week range (between $37.03 low and $114.26 high), indicating the stock is trading near the lower end of its yearly range. This positioning suggests that the market is pricing in significant negative sentiment, and the stock may be approaching oversold conditions, though the persistent downtrend warrants caution. The 52-week low of $37.03 was set in May 2026, and the stock has since recovered, but it remains far below its 52-week high of $114.26, reflecting a loss of over 50% from peak levels.
Beta
1.02
1.02x market volatility
Max Drawdown
-61.0%
Largest decline past year
52-Week Range
$37-$114
Price range past year
Annual Return
-50.1%
Cumulative gain past year
| Period | PLNT Return | S&P 500 |
|---|---|---|
| 1m | -5.1% | +5.5% |
| 3m | -0.3% | +1.7% |
| 6m | -35.1% | +12.2% |
| 1y | -50.1% | +18.6% |
| ytd | -51.4% | +12.8% |
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PLNT Fundamental Analysis
Planet Fitness reported revenue of $337.2 million for Q1 2026, representing a 21.9% year-over-year growth rate, a notable acceleration from the prior year's growth. The company's revenue trajectory has been consistently strong, with sequential growth from $276.7 million in Q1 2025 to $337.2 million in Q1 2026, driven by both corporate-owned store growth and franchise expansion. The Equipment segment, which generates $62.1 million in revenue, and the Franchise segment at $102.2 million, are key contributors, while Advertising revenue adds $32.2 million. This diversified revenue stream supports the company's growth narrative, though the reliance on consumer discretionary spending poses a risk in a potential economic downturn.
Quarterly Revenue
$337236000.0B
2026-03
Revenue YoY Growth
+21.9%
YoY Comparison
Gross Margin
38.9%
Latest Quarter
Free Cash Flow
$267378000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is PLNT Overvalued?
Given that Planet Fitness has positive net income, the PE ratio is the primary valuation metric. The trailing PE is 41.4x, while the forward PE is 14.8x, indicating that the market expects significant earnings growth in the next year. This wide gap between trailing and forward PE suggests that analysts anticipate a substantial rebound in profitability, likely driven by margin expansion and cost controls. The PEG ratio of 1.36x implies that the stock is reasonably priced relative to its expected earnings growth, but the high trailing PE reflects the recent earnings dip. Compared to the industry average PE of 22x, Planet Fitness trades at a 88% premium on a trailing basis, but on a forward basis, it trades at a 33% discount, highlighting the market's expectation of a sharp earnings recovery. Historically, the stock's PE has ranged from 26x to 105x over the past five years, with the current trailing PE of 41.4x sitting near the middle of that range, suggesting that the stock is not at extreme valuation levels but is pricing in a strong turnaround.
PE
41.4x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 27x~111x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
20.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant. The company's debt-to-equity ratio is -6.0, indicating that liabilities exceed assets, which is a red flag for solvency. Interest expenses were $32.97M in Q1 2026, consuming a large portion of operating income ($99.17M). The negative ROE of -45.3% reflects this leverage, and any rise in interest rates could squeeze margins further. Additionally, the high trailing PE of 41.4x means the stock is priced for perfection; any earnings miss could trigger a sharp de-rating. The company's reliance on consumer discretionary spending makes it vulnerable to economic downturns, as gym memberships are often cut first when budgets tighten.
