Interactive Strength, Inc. (NASDAQ: TRNR)

Sector: Consumer Cyclical Industry: Personal Services CIK: 0001785056
Market Cap 655,977.66
P/B 0.04
P/E -0.03
P/S 0.07
ROIC (Qtr) -33.41
Div Yield % 0.00
Rev 1y % (Qtr) 139.08
Total Debt (Qtr) 46.82 Mn
Debt/Equity (Qtr) 3.15
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About

Investment thesis

Bull case

  • Tangible assets of 62.18M provide exceptional 159.02x coverage of deferred revenue 391000, showing strong service capability backing.
  • Long-term investments of 36.77M provide solid 1.08x coverage of long-term debt 34.19M, indicating strategic financial planning.
  • Strong free cash flow of (15.08M) provides 2.75x coverage of acquisition spending (5.49M), indicating disciplined M&A strategy.
  • Tangible assets of 62.18M provide robust 6.73x coverage of other current liabilities 9.24M, indicating strong asset backing.
  • R&D investment of 2.73M represents healthy 6.99x of deferred revenue 391000, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (14.06M) barely covers its investment activities of (53.76M), with a coverage ratio of 0.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 845000 against inventory of 8.21M, the 0.10 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (53.76M) provide weak support for R&D spending of 2.73M, which is -19.66x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 845000 provide limited coverage of acquisition spending of (5.49M), which is -0.15x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (14.06M) provides insufficient coverage of deferred revenue obligations of 391000, which is -35.97x, raising concerns about future service delivery capabilities.

Consolidation Items Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Personal Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ROL Rollins Inc 29.03 Bn 55.12 7.72 1.04 Bn
2 SCI Service Corp International 11.40 Bn 21.01 2.65 5.14 Bn
3 HRB H&R Block Inc 4.26 Bn 6.94 1.12 2.94 Bn
4 FTDR Frontdoor, Inc. 4.22 Bn 16.06 2.07 1.20 Bn
5 BFAM Bright Horizons Family Solutions Inc. 3.89 Bn 19.41 1.35 1.75 Bn
6 CSV Carriage Services Inc 0.80 Bn 65.55 3.90 0.56 Bn
7 EM Smart Share Global Ltd 0.26 Bn -141.13 1.01 -
8 MED Medifast Inc 0.12 Bn -6.35 0.31 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.62 1.18
EV to Cash from Ops. EV/CFO -3.78 11.38
EV to Debt EV to Debt 1.14 3.64
EV to EBIT EV/EBIT -6.24 -48.48
EV to EBITDA EV/EBITDA -2.88 6.52
EV to Free Cash Flow [EV/FCF] EV/FCF -3.53 8.27
EV to Market Cap EV to Market Cap 81.13 3.43
EV to Revenue EV/Rev 5.45 1.80
Price to Book Value [P/B] P/B 0.04 3.15
Price to Earnings [P/E] P/E -0.03 2.58
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -5.41
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -14.53
Dividend per Basic Share Div per Share (Qtr) 0.00 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 9.14
Interest Coverage Int. cover (Qtr) -0.76 0.71
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -333.62 13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -62.76 44.85
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.63
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 74.63 -83.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 37.25 1.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 74.63 -59.36
EBT Growth (1y) % EBT 1y % (Qtr) 51.26 -71.50
EPS Growth (1y) % EPS 1y % (Qtr) 117.87 -98.14
FCF Growth (1y) % FCF 1y % (Qtr) -36.99 -22.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 97.92 9.00
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.11 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.03 1.89
Current Ratio Curr Ratio (Qtr) 0.56 3.01
Debt to Equity Ratio Debt/Equity (Qtr) 3.15 1.99
Interest Cover Ratio Int Coverage (Qtr) -0.76 0.71
Times Interest Earned Times Interest Earned (Qtr) -0.76 0.71
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -48.20 7.38
EBIT Margin % EBIT Margin % (Qtr) -87.26 0.88
EBT Margin % EBT Margin % (Qtr) -202.35 -9.97
Gross Margin % Gross Margin % (Qtr) -0.80 31.03
Net Profit Margin % Net Margin % (Qtr) -202.40 -8.73