Peloton Interactive, Inc. (NASDAQ: PTON)

Sector: Consumer Cyclical Industry: Leisure CIK: 0001639825
Market Cap 1.78 Bn
P/B -5.45
P/E -34.92
P/S 0.73
ROIC (Qtr) 1.46
Div Yield % 0.00
Rev 1y % (Qtr) -2.58
Total Debt (Qtr) 1.95 Bn
Debt/Equity (Qtr) -5.96
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About

Peloton Interactive, Inc., often referred to as Peloton, operates in the competitive fitness and wellness industry, with its stock symbol PTON. The company has transformed the way people exercise by providing an engaging and unique fitness experience through its cutting-edge hardware, software, and content. Peloton's primary business activities involve designing, manufacturing, and selling a range of connected fitness products, such as the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row. These products...

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Investment thesis

Bull case

  • Healthy cash reserves of 1.22B provide 4.43x coverage of short-term debt 276.30M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 345.40M exceeds capital expenditure of 12.20M by 28.31x, indicating strong organic growth funding capability.
  • Tangible assets of 2.12B provide exceptional 13.61x coverage of deferred revenue 155.70M, showing strong service capability backing.
  • R&D investment of 242.50M represents healthy 1.56x of deferred revenue 155.70M, indicating strong future innovation pipeline.
  • Retained earnings of (5.63B) represent substantial 17.22x of equity (326.70M), indicating strong internal capital generation.

Bear case

  • Operating cash flow of 357.60M barely covers its investment activities of (14.40M), with a coverage ratio of -24.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (14.40M) provide weak support for R&D spending of 242.50M, which is -0.06x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.22B provide limited coverage of acquisition spending of (2.20M), which is -556x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 357.60M shows concerning coverage of stock compensation expenses of 223.80M, with a 1.60 ratio indicating potential earnings quality issues.
  • Operating earnings of 79.70M show weak coverage of depreciation charges of 126.60M, with a 0.63 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Leisure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AS Amer Sports, Inc. 22.38 Bn 71.89 3.67 1.87 Bn
2 HAS Hasbro, Inc. 13.30 Bn 46.47 3.26 3.32 Bn
3 PLNT Planet Fitness, Inc. 7.78 Bn 37.79 6.04 2.58 Bn
4 GOLF Acushnet Holdings Corp. 7.40 Bn 80.24 4.75 0.90 Bn
5 LTH Life Time Group Holdings, Inc. 6.29 Bn 21.85 2.16 4.13 Bn
6 MAT Mattel Inc /De/ 5.43 Bn 12.57 1.04 2.59 Bn
7 YETI YETI Holdings, Inc. 3.97 Bn 24.75 2.17 0.22 Bn
8 MSGE Madison Square Garden Entertainment Corp. 2.95 Bn 56.80 2.91 1.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.20 1.19
EV to Cash from Ops. EV/CFO 7.25 -6.09
EV to Debt EV to Debt 1.33 14.49
EV to EBIT EV/EBIT 32.54 -159.90
EV to EBITDA EV/EBITDA 17.25 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF 7.51 0.74
EV to Market Cap EV to Market Cap 1.46 -0.64
EV to Revenue EV/Rev 1.06 4.65
Price to Book Value [P/B] P/B -5.45 4.75
Price to Earnings [P/E] P/E -34.92 12.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.11
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.13
Interest Coverage Int. cover (Qtr) 0.62 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 39.49 1,190.33
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 13.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 151.59 -111.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 285.68 -165.31
EBIT Growth (1y) % EBIT 1y % (Qtr) 149.53 -1,562.20
EBT Growth (1y) % EBT 1y % (Qtr) 83.15 -1,555.34
EPS Growth (1y) % EPS 1y % (Qtr) 84.21 -377.44
FCF Growth (1y) % FCF 1y % (Qtr) 128.29 10.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.39 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.13 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 1.56 3.31
Current Ratio Curr Ratio (Qtr) 1.98 4.80
Debt to Equity Ratio Debt/Equity (Qtr) -5.96 2.35
Interest Cover Ratio Int Coverage (Qtr) 0.62 -30.68
Times Interest Earned Times Interest Earned (Qtr) 0.62 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.50 -57.55
EBIT Margin % EBIT Margin % (Qtr) 3.27 -65.38
EBT Margin % EBT Margin % (Qtr) -1.99 -69.55
Gross Margin % Gross Margin % (Qtr) 51.70 46.51
Net Profit Margin % Net Margin % (Qtr) -2.10 -74.45