Peloton market value

Peloton market value DEFAULT

Peloton Interactive, Inc. (PTON)

This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.

Copyright 2021 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25.35% per year. These returns cover a period from January 1, 1988 through October 4, 2021. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit Performance Disclosure for information about the performance numbers displayed above.

Visit www.zacksdata.com to get our data and content for your mobile app or website.

Real time prices by BATS. Delayed quotes by Sungard.

NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.

Privacy Policy and Terms of Service apply.

Sours: https://www.zacks.com/stock/chart/PTON/fundamental/book-value

Peloton InteractiveNasdaqGS:PTON Stock Report

Peloton Interactive Competitors

Price History & Performance

Historical stock prices
Current Share PriceUS$85.11
52 Week HighUS$80.48
52 Week LowUS$171.09
Beta0.78
1 Month Change-18.88%
3 Month Change-23.01%
1 Year Change-35.19%
3 Year Changen/a
5 Year Changen/a
Change since IPO230.40%

Recent News & Updates

Oct 15

Peloton: I'm Not Jumping On This Bike

Peloton has upcoming earnings in a few weeks' time. Here's how to think about this stock, through the positive and negative aspects. The crown jewel here is the subscription side of the business, and that's rapidly improving. Ultimately, Peloton is not a cheap stock, it's difficult to get compelled here.

Sep 21

Peloton Is Putting All Its Chips On The Table

In its recent Q4 fiscal 2021 earnings release, Peloton guided Q1 fiscal 2022 revenue to $800 million or 20% below expectations. The company is now projecting rapidly slowing hardware revenue growth and an adjusted EBITDA loss of -$325 million for the coming fiscal year. The slowdown coincides with a period of heavy investment in additional manufacturing and supply chain capacity creating a potential supply-demand imbalance. Based on guidance, 2022 looks to be the second consecutive year of -$1 billion of cash outflows creating potential balance sheet risk. Peloton has the potential to be one of the great consumer brands of the future. For this reason, it is worthy of consideration by all growth-stock investors.

Sep 13

Peloton: The Slowdown Is Coming

Shares of Peloton continue to trade in the penalty box after declining 20% year to date. The company has been hit with a wave of product recalls, profitability declines, and a potential slowdown in user engagement. In Peloton’s most recent quarter, net new connected fitness subscribers growth rates declined, despite the steps Peloton has taken to diversify its product lineup and reduce prices. The stock continues to look expensive at ~6x forward revenue.

Sep 10
Peloton Interactive, Inc. (NASDAQ:PTON) is Struggling to Become Profitable, and has Already Taken on Debt

Peloton Interactive, Inc. (NASDAQ:PTON) is Struggling to Become Profitable, and has Already Taken on Debt

Peloton Interactive, Inc.'s (NASDAQ:PTON) future prospects are made more uncertain both by the adjustment to the pandemic and by the recall of their tread+ treadmill product. Peloton provides interactive fitness products in North America and internationally. On 30 June 2021, the US$32b market-cap company posted a loss of US$189m for its most recent financial year.

Shareholder Returns

PTONUS LeisureUS Market
7D-1.2%1.0%2.0%
1Y-35.2%2.8%27.6%

Return vs Industry: PTON underperformed the US Leisure industry which returned 2.7% over the past year.

Return vs Market: PTON underperformed the US Market which returned 27.6% over the past year.

Price Volatility

PTON volatility
PTON Beta0.78
Industry Beta1.33
Market Beta1

Stable Share Price: PTON is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PTON's weekly volatility (7%) has been stable over the past year.

About the Company

Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. It offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, and Peloton Tread+ names. The company also provides connected fitness subscriptions for various household users, and access to various live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes.

Peloton Interactive Fundamentals Summary

PTON fundamental statistics
Market CapUS$25.58b
Earnings (TTM)-US$189.00m
Revenue (TTM)US$4.02b

Earnings & Revenue

PTON income statement (TTM)
RevenueUS$4.02b
Cost of RevenueUS$2.57b
Gross ProfitUS$1.45b
ExpensesUS$1.64b
Earnings-US$189.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)-0.63
Gross Margin36.10%
Net Profit Margin-4.70%
Debt/Equity Ratio47.3%

How did PTON perform over the long term?

See historical performance and comparison

Valuation

Is Peloton Interactive undervalued compared to its fair value and its price relative to the market?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PTON ($85.11) is trading below our estimate of fair value ($121.84)

Significantly Below Fair Value: PTON is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PTON is unprofitable, so we can't compare its PE Ratio to the US Leisure industry average.

PE vs Market: PTON is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PTON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PTON is overvalued based on its PB Ratio (14.6x) compared to the US Leisure industry average (4.3x).


Future Growth

How is Peloton Interactive forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

48.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTON is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: PTON is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PTON's is expected to become profitable in the next 3 years.

Revenue vs Market: PTON's revenue (19.7% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: PTON's revenue (19.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PTON's Return on Equity is forecast to be high in 3 years time (25.1%)


Past Performance

How has Peloton Interactive performed over the past 5 years?

35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTON is currently unprofitable.

Growing Profit Margin: PTON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PTON is unprofitable, but has reduced losses over the past 5 years at a rate of 35.7% per year.

Accelerating Growth: Unable to compare PTON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PTON is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (187.3%).


Return on Equity

High ROE: PTON has a negative Return on Equity (-10.77%), as it is currently unprofitable.


Financial Health

How is Peloton Interactive's financial position?


Financial Position Analysis

Short Term Liabilities: PTON's short term assets ($2.8B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: PTON's short term assets ($2.8B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: PTON's debt to equity ratio (47.3%) is considered high.

Reducing Debt: Insufficient data to determine if PTON's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PTON has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PTON has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Peloton Interactive current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PTON's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PTON's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PTON's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PTON's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PTON's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

US$11,356,767

Compensation

Mr. John Paul Foley Co-Founded Peloton Interactive, Inc. in 2012 and has been its Chief Executive Officer since June 2012. Mr. Foley was the President of Barnes & Noble eCommerce at Barnes & Noble, Inc. fr...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD11.36M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PTON's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: PTON's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

Company Information

Peloton Interactive, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Peloton Interactive, Inc.
  • Ticker: PTON
  • Exchange: NasdaqGS
  • Founded: 2012
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$25.575b
  • Shares outstanding: 300.50m
  • Website: https://www.onepeloton.com

Number of Employees


Location

  • Peloton Interactive, Inc.
  • 441 Ninth Avenue
  • Sixth Floor
  • New York
  • New York
  • 10001
  • United States

Listings


Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2021/10/16 22:25
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Sours: https://simplywall.st/stocks/us/consumer-durables/nasdaq-pton/peloton-interactive
  1. Avaya phone vpn
  2. Staples connect business directory
  3. Peter pan 2021 louis partridge

Why Peloton Stock Is Becoming a Value

Share prices of Peloton Interactive(NASDAQ:PTON) are 51% off all-time highs set in mid-January, caught up in an investing trend that instead favors COVID-19 recovery stocks. It hasn't helped that management has made some missteps with its Tread recall, which lost the company a fair amount of goodwill with customers and investors back in April. 

But if we take a step back and look at Peloton as a growth stock, the long-term story is still strong. The company's user base is growing, its product lineup is expanding, and financial performance is getting better. Here's why I think this stock could be a value in today's market. 

Person riding Peloton bike at home.

Image source: Peloton.

Subscriptions are the key

If Peloton is going to be successful as a company, it won't be because it makes or sells bikes. It'll be because it generates growing, high-margin subscription revenue. And on that front, the company is doing very well. 

Subscription revenue was up 132% year over year in the fiscal fourth quarter to $281.6 million, and gross profit from subscriptions was up 159% to $178.1 million. 

The subscription business is also a big reason the company's move into corporate wellness and hotel and resort settings is so important. Peloton has been able to attract millions of active members, but reaching new customers who are allowing others to use their Peloton equipment and subscriptions at rental locations can be another way to leverage the company's equipment and content base.

Expanding on a strong core

In fiscal 2018, Peloton was almost entirely a stationary cycling company, with cycling accounting for about 85% of the company's workouts. But in the past three years, the company has expanded how people use its products. Strength programs are now about 20% of workouts, and floor content is around 10%. Cycling is now less than 60% of the workouts done in any given year, and shrinking.

I think this is a sign that Peloton is building a product that's attractive to more users and becoming stickier for subscribers. If Peloton has something for everyone, it's going to provide much more value to subscribers long-term. 

In time, we could even see Peloton slowly raise subscription prices because of the value it's providing. 

Peloton has growth opportunities ahead

After acquiring its own manufacturing facility in the U.S., Peloton now has more control of not only manufacturing and inventory but also new product development. We know a new Tread is on the way, and improved bikes are likely as well. 

I think Peloton could also expand into home strength equipment and even wearables. Peloton is already a critical fitness tool for members, so why not deepen that relationship? 

The company has a lot of opportunities to expand its product footprint and engage even more with customers. As it does, the incremental benefit to users from more digital content makes a Peloton subscription that much more valuable. 

The growth story isn't over

There are a number of potential threats to Peloton's business, from Apple's growing suite of fitness content to the reopening of gyms around the world. But I think the content library that Peloton has built along with the installed base of bikes and treadmills will make this a formidable fitness company for years. Remember that the value of Peloton is in the number of users subscribing to and using the company's workout content -- and with 459.7 million workouts done by Peloton customers in the last year, this is a workout company that has a huge lead over the competition in at-home workouts. 

Sours: https://www.fool.com/investing/2021/10/05/why-peloton-stock-is-now-a-value/
Valuation: Peloton (PTON) DCF Valuation Model

Peloton Interactive Inc.

Stocks: Real-time U.S. stock quotes reflect trades reported through Nasdaq only; comprehensive quotes and volume reflect trading in all markets and are delayed at least 15 minutes. International stock quotes are delayed as per exchange requirements. Fundamental company data and analyst estimates provided by FactSet. Copyright 2019© FactSet Research Systems Inc. All rights reserved. Source: FactSet

Indexes: Index quotes may be real-time or delayed as per exchange requirements; refer to time stamps for information on any delays. Source: FactSet

Markets Diary: Data on U.S. Overview page represent trading in all U.S. markets and updates until 8 p.m. See Closing Diaries table for 4 p.m. closing data. Sources: FactSet, Dow Jones

Stock Movers: Gainers, decliners and most actives market activity tables are a combination of NYSE, Nasdaq, NYSE American and NYSE Arca listings. Sources: FactSet, Dow Jones

ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. Sources: FactSet, Dow Jones

Bonds: Bond quotes are updated in real-time. Sources: FactSet, Tullett Prebon

Currencies: Currency quotes are updated in real-time. Sources: FactSet, Tullett Prebon

Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. Change value during the period between open outcry settle and the commencement of the next day's trading is calculated as the difference between the last trade and the prior day's settle. Change value during other periods is calculated as the difference between the last trade and the most recent settle. Source: FactSet

Data are provided 'as is' for informational purposes only and are not intended for trading purposes. FactSet (a) does not make any express or implied warranties of any kind regarding the data, including, without limitation, any warranty of merchantability or fitness for a particular purpose or use; and (b) shall not be liable for any errors, incompleteness, interruption or delay, action taken in reliance on any data, or for any damages resulting therefrom. Data may be intentionally delayed pursuant to supplier requirements.

Mutual Funds & ETFs: All of the mutual fund and ETF information contained in this display, with the exception of the current price and price history, was supplied by Lipper, A Refinitiv Company, subject to the following: Copyright 2019© Refinitiv. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Cryptocurrencies: Cryptocurrency quotes are updated in real-time. Sources: CoinDesk (Bitcoin), Kraken (all other cryptocurrencies)

Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. Source: Kantar Media

Sours: https://www.barrons.com/market-data/stocks/pton

Value peloton market

At-home fitness major Peloton (NASDAQ: PTON) has been one of the big winners through the Covid-19 pandemic, with its stock up by over 5x since the first set of Covid-19 lockdowns back in March 2020. The stock now trades at about $105 per share, or almost 6x projected FY’22 revenues (fiscal years end June) and 200x FY’22 EPS. Is this expensive? Probably not, considering that sales could potentially grow almost 2.4x over the next four years (FY’24), with the company also expected to improve its profitability considerably from FY’22 onward.

We believe Peloton’s revenues could potentially rise close to 2.4x from the levels of $4 billion in FY’21 to $9.5 billion by FY’25, representing a compounded annual growth rate of almost 24%. For context, that’s still well below the solid 145% CAGR the company is on track to post between FY’18 and FY’21. Although the end of Covid-19 – a big tailwind for Peloton – appears to be in sight, there are multiple secular trends that should help to grow sales post the pandemic. The economics of owning a Peloton compare favorably with gym memberships and spin classes, and the added convenience of working out from home should give customers a reason to buy Peloton. Moreover, Peloton should benefit from the easing of current supply chain bottlenecks, with the company planning to build out its own U.S. factory, which is likely to commence operations from 2023. Peloton’s international expansion – which is just getting started – is also likely to drive sales growth. Sure, revenue growth could be still higher if we consider Peloton’s possible push into commercial-fitness applications post its acquisition of Precor, but 2.4x growth in the top line over the next four fiscal years looks very much achievable as a base case.

Combine revenue growth with the fact that Peloton’s net income margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) are on an improving trajectory. Net margins rose sharply from -13% over the first nine months of FY’20 to almost 4% over the same period in FY’21. Margins probably have a lot more room to expand as revenues increase, given Peloton’s solid unit economics. Peloton has a vertically integrated model which includes hardware, software, and subscription services, somewhat similar to tech titan Apple . Gross margins stood at about 39% for the first nine months of FY’21, just a hair below Apple’s 40% odd margins. It’s probably not far-fetched to assume that net margins could approach 20% by FY’25. Considering our revenue projections of roughly $9.5 billion and 20% margins, almost $1.9 billion in net income is possible by FY’25.

Now, if Peloton’s revenues grow 2.4x, the P/S multiple will shrink by almost 60% from its current levels, assuming the stock price stays the same, correct? But that’s exactly what Peloton’s investors are betting will not happen! If revenues expand 2.4x over the next few years, instead of the P/S shrinking from around 6x presently to about 2.5x, a scenario where the P/S metric falls more modestly, perhaps to about 5x looks more likely, considering the fact that profitability is also projected to see sharp improvement. This would make a 50% plus growth in Peloton’s stock price a real possibility in the next four years. This would likely take Peloton’s market cap from about $31 billion currently to almost $48 billion by FY’25. Although the stock is likely to remain somewhat volatile through the post-Covid reopening, as investors cycle into value and commodity stocks to ride the economic upturn, we think Peloton should deliver solid returns for investors in the medium term.

See our analysis on Peloton Stock Chances Of Rise for an overview of Peloton stock’s recent performance and where it could be headed over the next month.

[6/3/2021] What’s Happening With Peloton’s Stock? Peloton’s stock (NASDAQ: PTON) is up by almost 9% over the last week (five trading days) outperforming the S&P 500 which has remained roughly flat over the same period. The recent gains are driven by favorable views from brokerages, and also as investors likely see increasing value in the stock following its almost -30% decline this year. So how is Peloton stock expected to trend in the near term? Is the stock poised to decline further or is a recovery looking likely? Based on our machine learning engine, which analyzes Peloton’s stock price movements post its 2019 IPO, the stock has a 64% chance of a rise over the next month, after rising by about 9% over the last five trading days. See our analysis on Peloton Stock Chances Of Rise for more details.

We also think the longer-term outlook for Peloton’s business is solid. We expect demand to remain strong even post Covid-19, as the economics of owning a Peloton compare favorably with gym memberships and spin classes. Moreover, Peloton’s business should continue to benefit from supply chain improvements with the company planning to build out its own U.S. factory, which should commence operations from 2023. Peloton also recently closed its acquisition of Precor, a company that caters to commercial-fitness applications such as gyms and hotels and this could help to expand the Peloton brand and product range. Peloton’s international expansion is also just getting started, and this could also help the stock. While Peloton trades at a relatively lofty 6x projected FY’22 revenues (fiscal years end in June), this is justified by its high growth rates and thick margins. Consensus estimates point to a healthy 30% plus growth in revenues over FY’22 and gross margins have typically come in at about 40%.

[5/6/2021] Peloton’s Tread+ Recall An Buying Opportunity?Peloton’s stock (NASDAQ: PTON) fell by almost 15% in Wednesday’s trading, after the company said that it would be carrying out voluntary recalls of its treadmill machines – the Tread+ and Tread over safety issues, offering users a full refund. The Tread+ treadmills were reportedly responsible for dozens of accidents and the death of at least one child. Peloton stock is now down by close to 50% from all-time highs seen in January, as it has also been hurt by a broader rotation out of growth and “at home” stocks, with the Covid-19 pandemic receding in the U.S. So is Peloton stock worth a look at current levels of about $82 per share? We think it is.

Now, the current recall marks a PR setback for Peloton, which initially brushed off concerns that the U.S. Consumer Product Safety Commission (CPSC) raised about its treadmills in April. The financial impact of the recall could also be somewhat meaningful. The recall is likely to involve over 125,000 Tread+ machines which cost about $4,300 each, and a small number of Tread machines that have seen a very limited roll out in the U.S. If we assume that 70% of customers opt to return the Tread+ (customers also have the option of keeping their treadmills and having Peloton relocate them to rooms not accessible by children), that would translate into refunds to the tune of over $375 million, excluding logistics and other costs. For perspective, Peloton’s revenues stood at about $1.1 billion last quarter. The company has also stopped the sale and distribution of Tread+ as it works on hardware modifications and this could also impact revenues this fiscal year.

That said, a majority of Peloton’s hardware sales come from its exercise bikes and we think the demand is likely to remain strong even as Peloton fixes its treadmills. Treadmill-related accidents are also not unique to the company. Per the CPSC, there were 17 deaths related to treadmills in the U.S. (across manufacturers) between 2018 and 2019. As Tread+ sales eventually resume, the company should see volumes pick up. Moreover, Peloton’s business should continue to benefit from supply chain improvements, the launch of new and lower-priced products, and its international expansion, which is just getting started.

So is Peloton stock expected to decline further in the near term or is a recovery looking likely? Based on our machine learning engine, which analyzes Peloton’s stock price movements post its 2019 IPO, there is a strong chance of a rise over the next month, after declining by about 17% over the last five trading days. See our analysis on Peloton Stock Chances Of Rise for more details.

[4/20/2021] How Peloton’s Treadmill Safety Issues Impact Its StockPeloton’s stock (NASDAQ: PTON) fell by over 7% on Monday and remains down by around 9% over the last week (five trading days) compared to the S&P 500 which is up by about 1% over the same period. The sell-off comes as the U.S. Consumer Product Safety Commission (CPSC) said that the company’s Tread+ treadmills were responsible for dozens of injuries and at least one death. The Commission also asked people with young children or pets to stop using the Peloton treadmills, while urging the company to carry out a recall of the product. So how will this impact Peloton? Now, treadmill-related accidents are not unique to the company. Per the CPSC, there were 17 deaths related to treadmills between 2018 and 2019. However, we think Peloton may need to respond with some safety-related software updates or possibly hardware enhancements in the future. The recent events could create some image-related issues for Peloton, which has been one of the pandemic’s biggest winners. So how is Peloton stock expected to trend? Is the stock poised to decline further or is a recovery looking likely? Based on our machine learning engine, which analyzes Peloton’s stock price movements post its 2019 IPO, the stock has a 64% chance of a rise over the next month, after declining by about 9% over the last five trading days. See our analysis on Peloton Stock Chances Of Rise for more details.

[2/16/2021] What’s Happening With Peloton Stock?

Connected fitness company Peloton’s stock (NASDAQ: PTON) has risen by about 10% over the last week (five trading days). The recent gains come on the back of a rally in the broader markets, with the S&P 500 is up 3% over the same period, and also due to positive views in recently initiated sell-side coverage on the stock. That said, Peloton stock remains down by about -19% year-to-date, driven by the broader correction in growth stocks and pandemic winners such as “at home” stocks. So is Peloton stock poised to rise further or is a correction looking imminent? Based on our machine learning engine, which analyzes Peloton’s stock price movements post its 2019 IPO, the stock has a 77% chance of a rise over the next month, after rising by about 10% over the last five trading days. See our analysis on Peloton Stock Chances Of Rise for more details.

So what’s the longer-term outlook for the company? We think Peloton looks like a good bet for long-term investors for a couple of reasons. The stock trades at close to 9x projected FY’21 revenues (fiscal years end in June). Although that looks somewhat high for a company that sells fitness equipment, Peloton justifies this for a couple of reasons. Firstly, Peloton is growing fast, with revenues on track to more than double in FY’21 driven by Covid-19 related demand. Growth should remain strong in the medium term as well, on account of supply chain improvements, the launch of new and lower-priced products, and international expansion. For perspective, Peloton’s revenues are projected to rise 35% in FY’22 per consensus estimates. Secondly, Peloton’s unit economics also look solid, meaning that it should become quite profitable as revenues continue to scale up. Gross margins stood at almost 40% as of the last quarter, with roughly 35% margins for products and 60% margins on connected fitness subscriptions. That’s even higher than consumer technology behemoth Apple (NASDAQ:AAPL), which has gross margins of about 39%.

[2/16/2021] What’s Happening With Peloton Stock?Peloton’s (NASDAQ: PTON) stock has gained about 5x over the last year, making the at-home fitness company one of the biggest winners through Covid-19. Here’s a quick rundown of the recent developments for Peloton’s stock.

Firstly, Peloton published a strong set of Q2 FY’21 results (quarter ended December 31, 2020), beating market expectations. Revenue grew 128% year-over-year to $1.06 billion and the company also posted a small profit. Connected fitness subscribers grew to 1.67 million at the end of the quarter, marking an increase of 134% year-over-year, and the number is expected to grow to 2.28 million by the end of the fiscal year. Connected fitness subscribers pay about $40 per month to access and sync classes to their Peloton equipment.

One of Peloton’s biggest issues has been that it isn’t able to fulfill demand quickly enough. Although this might seem like a nice problem to have, Peloton risks alienating potential customers and hurting customer experience. This has been a factor holding the stock back since the holiday quarter, with Peloton underperforming the S&P 500 year-to-date. However, the company says that it now plans to invest over $100 million in air freight and expedited ocean freight over the next six months to help speed up its deliveries.

Separately, Peloton recently raised about $875 million in capital via a convertible debt offering at a 0% rate. The company will not pay any interest on the notes till they mature in 2026 and the conversion price stands at about $239, about 55% ahead of the stock’s current market price. This looks like an attractive deal for Peloton, enabling it to invest in its fast-growing business without immediately diluting existing shareholders. [1]

See our interactive analysis Peloton (PTON) Valuation: Expensive Or Cheap? for a detailed look at Peloton’s valuation and financials.

[12/31/2020] Peloton Stock Updates

While Peloton’s (NASDAQ: PTON) stock saw a big sell-off after news of Pfizer’s Covid-19 vaccine in early November 2020, the stock is now up a solid 50% since then and is up by roughly 35% over December alone. So what are the trends driving Peloton’s surge? Firstly, the workout-from-home trend has continued to rise, and demand for Peloton’s products continues to significantly outstrip supply. For example, the premium Bike+ exercise bike has seen delivery timelines slip to 10 weeks currently. Secondly, Peloton was recently added to the Nasdaq 100 stock index. This move results in higher demand for the stock from index funds tracking the Nasdaq. Thirdly, the company announced last week that it would be acquiring Precor – one of the world’s largest commercial fitness equipment suppliers. This is being viewed very positively for a couple of reasons.

Precor has deep relationships with gyms, fitness centers, and hotels and this could also help Peloton expand its reach to these sectors, as they recover post the pandemic. Peloton could also integrate its digital and connected fitness capabilities with Precor equipment. Peloton is also likely to leverage Precor’s expertise and expand beyond its core offerings of bikes and treadmills to other equipment such as ellipticals and climbers. Precor has a total of about 625k square feet of manufacturing space located in the United States. With these facilities complementing Peloton’s existing manufacturing infrastructure in Asia, it should eventually ease manufacturing constraints.

[12/7/2020] Is Peloton A Fad?

Connected fitness company Peloton’s (NASDAQ: PTON) stock is up almost 4x this year, trading at levels of about $115 or about 8x projected FY’21 Revenues. Peloton’s recent growth partly justifies these valuations – it has effectively at least doubled Revenues each year over the last three years and is on track to double Revenues again in FY’21 (fiscal years end in June). However, as the early phase of growth dies down and Covid-19 related demand declines, could the company’s success be a flash in the pan? Or is Peloton building a sustainable competitive advantage? While it’s still too early to tell, we think that Peloton’s business model has a lot going for it.

High Switching Costs: Peloton’s business model focuses on building commitment via its pricey, but high-quality exercise bikes and treadmills. Once customers invest in its high-cost hardware, it’s likely that they will continue to pay for the monthly connected fitness subscription service (about $39 per month) to get the most out of their equipment. This is evident from the fact that churn rates stood at just 0.65% in Q1 FY’21 – well below most subscription-based digital services. [1] The company is also looking to significantly broaden its reach, by launching slightly lower-priced equipment and indicating that it could eventually sell pre-owned bikes.

Favorable Experience For Users: The overall experience of spin classes and fitness lessons are highly dependent on the quality of instruction, and Peloton’s team of instructors have obtained celebrity-like fame. This is a big positive, as Peloton’s model scales well compared to physical fitness classes. The economics of owning a Peloton also compare favorably with gym memberships and spin classes. The average monthly cost of just a gym membership was about $58 in the U.S. in 2018, while Peloton’s connected program costs $39 a month and can also be shared among family members.

Brand Buzz, Social Features: Being one of the first movers in the connected fitness space, Peloton has built significant brand value. The company is also building social features that could help to engage users and build a sense of community around its platform. This network effect could also help to prevent customers from churning out of its platform. Peloton is also counting on its lower-priced digital fitness subscription ($13 per month) as an acquisition channel for its pricier equipment and connected fitness offering. The company said that Digital Subscriptions grew 382% to over 510,000 over Q1.

[9/11/2020] Peloton’s Valuation

Peloton (NASDAQ: PTON) is an at-home fitness company that sells connected exercise bikes and treadmills and related fitness subscriptions. The stock is up over 4x year-to-date, as the Covid-19 pandemic and related lockdowns caused people to stop going to gyms and fitness centers and work out from home, causing demand for the company’s products and services to soar. Peloton now trades at about 8x projected FY’21 revenues, ahead of Apple (NASDAQ:AAPL) which trades at about 6.5x. Does this make sense? We think it does. In this analysis, we take a look at the company’s financials, future prospects, and valuation. See our interactive analysis Peloton (PTON) Valuation: Expensive Or Cheap? for more details. Parts of the analysis are summarized below.

An Overview of Peloton’s Business

Peloton Interactive sells connected fitness equipment including bikes (starting at about $1,900) and treadmills (starting at about $2500) with a monthly Connected Fitness Subscriptions ($39 per month), which streams and syncs instructor-led boutique classes to users bikes and the Peloton Digital Membership ($13 per month) which streams classes to mobile devices and smart TVs. The company’s Product and Service bundle is positioned as an alternative to not just other exercise equipment, but to gyms and fitness center memberships. Although the company’s products are priced at a premium, the ecosystem – which combines hardware, software, and content – compares quite favorably in terms of price versus fitness classes and subscriptions. For perspective, the average monthly cost of just a gym membership was about $58 in the U.S. in 2018. [2] While Peloton sells primarily to individuals, it also has some exposure to the commercial and hospitality markets.

Peloton’s Financials 

Peloton has been growing quickly. Revenues rose from about $440 million in FY’18 (fiscal year ends June) to about $1.83 billion in FY’20, – an annual rate of over 100%. Equipment sales rose from about $350 million in FY’18 to $1.46 billion in FY’20, with the company delivering 626k Bikes and Treads over 2020 alone. Subscription Revenues grew from about $80 million to $360 million, as the company’s base of connected fitness subscribers rose from 246k in FY’18 to about 1.09 million in FY’20. Peloton’s total membership base rose to 3.1 million as of the end of FY’20, including users who only pay for its digital subscription (not connected to its equipment). Over FY’21, we expect Peloton’s Revenues to grow to almost $3.6 billion, driven by continued growth in equipment sales and a growing base of subscribers.

While Peloton remained loss-making as of last year, the economics of its business look favorable. Overall Gross Margins are thick at about 47% in FY’20 with hardware margins standing at 43%. In comparison, even Apple – an icon of hardware profitability – posted Gross Margins of less than that at 40% over its last fiscal. While Peloton’s Operating Costs have been trending higher, they have been growing slower than Revenue. With Revenue projected to double this year, Peloton appears to be on track to turn profitable.

Peloton’s Valuation

Peloton stock currently trades at levels of close to $130 per share, valued at about 8x projected FY’21 revenues. While the valuation multiple might appear rich, considering that Apple – the most established hardware/software/services play – trades at about 6.5x – we think it is largely justified. Peloton’s Growth has been solid – with Revenues doubling each year over the last two years and sales are likely to double in FY’21 as well. Margins also have scope to improve meaningfully, considering the company’s high gross margins and low customer acquisition costs. Moreover, the company’s lucrative connected fitness subscription revenues are likely to be very sticky, as users who have invested in high-cost hardware are less likely to stop paying for its monthly service. Given the buzz surrounding the company’s brand, there may also be scope to double down on lifestyle and apparel products, taking on the likes of Lululemon and Nike.

That said, there are risks as well. Firstly, Peloton faces significant supply constraints at the moment. While a new manufacturing facility in Taiwan is likely to begin production at the end of the year, the company is still likely to miss out on some potential holiday demand. Secondly, as the Covid-19 pandemic eventually ends, investors could re-think the valuation of “at-home” stocks and this could at least temporarily impact Peloton’s valuation. Separately, tech giants – with their deep pockets and software ecosystems – could play a bigger role in the connected fitness space, challenging Peloton. For instance, Apple recently launched its at-home workout app, Fitness Plus, which provides guided workouts and connects with Apple devices such as the Apple Watch.

E-commerce is eating into retail sales, but this might be an investment opportunity for you. See our theme on E-commerce Stocks for a diverse list of companies that stand to benefit from the big shift.

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams

Notes:

  1. Peloton Press Release [↩]

Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you

Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. The platform uses extensive data to show in a single snapshot what drives the value of a company's business. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals.

Sours: https://www.forbes.com/sites/greatspeculations/2021/06/18/what-will-peloton-stock-look-like-in-2025/
Valuation: Peloton (PTON) DCF Valuation Model

Peloton Interactive Market Cap:

Market Capitalization Definition

Market Capitalization measures the total value of a company based on their stock price multiplied by the shares outstanding. This metric is important because it gives you an idea of the size of a company, and how the size has changed over time. When studying companies from a relative basis, it would make sense to compare companies that have a similar market capitalization because factors like market share, economies of scale, and business models would also be similar.

Read full definition.

Market Cap Range, Past 5 Years

Minimum 5.476B Mar 12 2020
Maximum 49.27B Jan 13 2021
Average 23.41B

Market Cap Related Metrics

News

Sours: https://ycharts.com/companies/PTON/market_cap

Similar news:

Peloton stock sheds $4 billion in market value in 1 day over its treadmill debacle

Peloton shares closed Wednesday down nearly 15%, wiping $4.1 billion off its market value in one day, after the fitness equipment maker apologized for not voluntarily recalling both its treadmill machines over safety concerns sooner.

Since March 18, Peloton's market cap has shed $7.4 billion. That was the day Peloton CEO John Foley revealed that an accident involving a Peloton treadmill had resulted in a child's death. The company has since been in back-and-forth discussions with the U.S. Consumer Product Safety Commission regarding dozens of reported injuries tied to its machines.

Peloton's stock was a huge winner in 2020, with shares surging more than 400% for the year. Peloton's market valued peaked in mid-January at $49 billion. Investors rallied behind Peloton as it saw tremendous growth during the early days of the Covid pandemic.

Consumers were looking for ways to exercise at home while gyms were shut down, and Peloton quickly became the option of choice for those who could afford its high-end cycles and treadmills. Peloton's 2020 revenue surged to $1.8 billion, from $915 million a year earlier.

But 2021 has been a different story. The stock is down 45% so far this year. Some of the decline has come as investors no longer favor companies that benefited from stay-at-home trends. Stocks such as Zoom and Netflix have started to fade as well. However, Peloton's decline is deeper due to the treadmill debacle.

On Wednesday, Peloton shares hit an intraday low not seen since September. The stock closed the day at $82.62.

"We view this as another sign that Peloton's voice and platform grew faster than its business, and it is still working to grow into its fame," BMO Capital Markets analyst Simeon Siegel said in a note to clients. "With a still ~$30 billion market cap ... Peloton's market value looms much larger than its expected results."

"We believe one can argue more of Peloton's market value has been created by its marketing department than by its engineers or instructors," Siegel said.

Siegel has an underperform rating on Peloton shares, with a price target of $45.

On the whole, though, Wall Street analysts are having a difficult time reaching a consensus over which way shares will go next. Some, in fact, see the dip as a chance to buy.

"In the years ahead, we will recall this moment in Peloton history as the proverbial buying opportunity," said Stifel's Scott Devitt.

Peloton said Wednesday it should have acted more quickly to resolve the issue with the treadmill. It said it's working on a repair that will be offered to treadmill owners in the coming weeks. It had been working toward debuting its less expensive treadmill model in the United States later this year, but it's unclear if the company will move forward with those plans.

"I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission's request that we recall the Tread+," Foley said. "We should have engaged more productively with them from the outset. For that, I apologize."

Peloton is set to report quarterly earnings after the market close on Thursday.

Read the full statement from the CPSC here.

— CNBC's Christopher Hayes contributed to this reporting.

Sours: https://www.cnbc.com/2021/05/05/peloton-sheds-4-billion-in-market-cap-in-1-day-over-treadmill-debacle.html


259 260 261 262 263