Beachbody Company, Inc. (NASDAQ: BODI)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001826889
Market Cap 66.14 Mn
P/B 2.68
P/E -1.55
P/S 0.23
ROIC (Qtr) -74.80
Div Yield % 0.00
Rev 1y % (Qtr) -41.40
Total Debt (Qtr) 25.49 Mn
Debt/Equity (Qtr) 1.03

About

Beachbody Company, Inc., often recognized by its acronym BODI, operates as a leading subscription health and wellness company. It offers fitness, nutrition, and stress-reducing programs to its customers, with its main business activities encompassing the development and marketing of digital fitness and nutrition content, as well as connected fitness products such as the BODi Bike. The company's operations span across various countries and regions, with a significant focus on the United States, Canada, the United Kingdom, and the European Union....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 33.95M provide 21.34x coverage of short-term debt 1.59M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 73.72M provides 2.89x coverage of total debt 25.49M, indicating robust asset backing and low credit risk.
  • R&D investment of 55.72M represents healthy 0.90x of deferred revenue 62.25M, indicating strong future innovation pipeline.
  • Robust R&D investment of 55.72M at 0.35x of SG&A 159.54M demonstrates strong commitment to innovation and future growth.
  • Cash reserves of 33.95M exceed inventory value of 11.15M by 3.05x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of 10.04M barely covers its investment activities of (4.27M), with a coverage ratio of -2.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.27M) provide weak support for R&D spending of 55.72M, which is -0.08x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 10.04M provides insufficient coverage of deferred revenue obligations of 62.25M, which is 0.16x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 10.04M shows concerning coverage of stock compensation expenses of 9.12M, with a 1.10 ratio indicating potential earnings quality issues.
  • Operating earnings of (36.95M) show weak coverage of depreciation charges of 29.56M, with a -1.25 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.45 1.10
EV to Cash from Ops. EV/CFO 6.64 -3.08
EV to Debt EV to Debt 2.61 28.98
EV to EBIT EV/EBIT -1.80 -26.54
EV to EBITDA EV/EBITDA -11.13 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 11.54 -67.01
EV to Market Cap EV to Market Cap 1.01 0.90
EV to Revenue EV/Rev 0.24 61.25
Price to Book Value [P/B] P/B 2.68 1.56
Price to Earnings [P/E] P/E -1.55 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -6.60 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -877.05 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.06 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 60.96 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 87.25 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 60.97 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 58.27 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 60.56 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 206.04 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -32.33 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.93 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.36 1.54
Current Ratio Curr Ratio (Qtr) 0.65 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 1.03 -0.39
Interest Cover Ratio Int Coverage (Qtr) -6.60 -202.56
Times Interest Earned Times Interest Earned (Qtr) -6.60 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.60 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -13.08 -4,786.62
EBT Margin % EBT Margin % (Qtr) -15.06 -5,002.12
Gross Margin % Gross Margin % (Qtr) 72.00 58.65
Net Profit Margin % Net Margin % (Qtr) -15.10 -5,003.08