Operating Margin

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Price: 84 EUR -1.75% Market Closed

Market Cap: 7.3B EUR

29.3%

Improving

by 3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

29.3%

Operating Income

$378m

Revenue

$1.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

29.3%

Operating Income

€378m

Revenue

$1.3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Planet Fitness Inc NYSE:PLNT	8.1B USD	Loading...
JP		Oriental Land Co Ltd TSE:4661	4.6T JPY	Loading...
US	L	Life Time Group Holdings Inc NYSE:LTH	6B USD	Loading...
US		Vail Resorts Inc NYSE:MTN	5.1B USD	Loading...
CN	S	Songcheng Performance Development Co Ltd SZSE:300144	21.8B CNY	Loading...
US	S	Six Flags Entertainment Corp F:6FE	2.6B EUR	Loading...
CN	S	Shenzhen Overseas Chinese Town Co Ltd SZSE:000069	20.5B CNY	Loading...
NL		Basic Fit NV AEX:BFIT	2.1B EUR	Loading...
BR		Smartfit Escola de Ginastica e Danca SA BOVESPA:SMFT3	12.4B BRL	Loading...
US		SeaWorld Entertainment Inc NYSE:PRKS	2.1B USD	Loading...
US		Bowlero Corp NYSE:BOWL	1.9B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Planet Fitness Inc
Glance View

Economic Moat

None

Market Cap

7.3B EUR

Industry

Hotels, Restaurants & Leisure

In the bustling world of fitness, Planet Fitness Inc. has carved a significant niche by redefining the traditional gym experience. Founded in 1992, the company capitalized on a straightforward yet potent strategy: offering a welcoming environment for first-time gym-goers and casual fitness enthusiasts. This approach was designed to demystify the often-intimidating atmosphere of health clubs, which alienated many potential customers. Central to its strategy is the "Judgement Free Zone" ethos, aimed at creating a non-competitive space where members feel comfortable regardless of their fitness level. The brand's distinctive color scheme of purple and yellow, coupled with its affordable membership options, reinforces this approachable image. Planet Fitness has grown into a vast network across North America, partly through franchising, allowing it to expand rapidly while maintaining its focus on a low-cost, high-value membership offering. The financial model of Planet Fitness Inc. is ingeniously multi-tiered. It generates revenue from a combination of company-operated locations, franchised stores, and equipment sales to franchisees. The franchising route enables Planet Fitness to scale its operations efficiently, with franchisees handling daily management but sharing a portion of the income with the parent company. Additionally, Planet Fitness benefits from ongoing royalty fees and marketing contributions from these franchises. Another revenue stream is its merchandising and branded equipment sales, fostering a consistent brand image across all locations. Collectively, this model not only sustains the company's rapid expansion but also secures a steady income stream with broad exposure and minimal risk, keeping it well-positioned in a competitive market. Through its unique brand proposition and business model, Planet Fitness has become a formidable contender in the fitness industry, appealing to a diverse demographic seeking affordable, accessible fitness solutions.

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Planet Fitness Inc
F:3PL

Peer Comparison

Market Distribution

Other Profitability Ratios

Planet Fitness Inc
Glance View

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Planet Fitness Inc F:3PL