Planet Fitness, Inc. (PLNT): a likely value trap?

Avoid — cheap because Planet Fitness's growth story broke this year and a fraud lawsuit still hangs over it.

⚠ TRAP Fundamentals72/100

Fell 20% in 9 trading day(s) — now $40.72

$114$37.0 peak $113 2023202420252026

Why PLNT dropped

The real crash happened back in May 2026 when Planet Fitness slashed guidance after weak new-member sign-ups during its peak season and froze planned price hikes, sending the stock down 31% in one day; that was followed by a securities fraud class action alleging the company misrepresented its marketing campaign's success. The recent -20% in 9 sessions is a continuation of that unresolved erosion of confidence, not a new one-off shock — even a Q2 2026 earnings beat on both revenue and EPS failed to stop the stock from sliding to fresh 52-week lows.

Fwd P/E 11.1Op margin 33.7%Rev growth 4.5%Debt/equity —Analyst upside 65.9%
How this scored 72/100
✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.
✅ Makes money Net profit margin 18.3%
✅ Generates cash Free cash flow $156M
✅ Not drowning in debt Debt/equity unknown (limit 200%)
✅ Can pay its bills Current ratio 1.6 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 19/25
Operating margin 33.7% 9/9
Net profit margin 18.3% 7/8
Return on equity unknown 2/8
Growth Is it getting bigger, or dying? 17/25
Revenue growth 4.5% 3/9
Earnings growth 26.1% 7/8
Expected profit change 24.7% 7/8
Value Is it cheap right now? 23/25
Forward P/E 11.1 9/10
PEG ratio 0.9 7/8
Analyst target upside 65.9% 7/7
Balance sheet Will it survive? 13/25
Debt / equity unknown 3/10
Current ratio 1.6 3/8
Free cash flow $156M 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for PLNT — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-25. Research only — not financial advice.