Is Peloton Interactive Stock a Good Investment?
Peloton Interactive Investment Advice | PTON |
- Examine Peloton Interactive's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Peloton Interactive's leadership team and their track record. Good management can help Peloton Interactive navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Leisure Products space and any emerging trends that could impact Peloton Interactive's business and its evolving consumer preferences.
- Compare Peloton Interactive's performance and market position to its competitors. Analyze how Peloton Interactive is positioned in terms of product offerings, innovation, and market share.
- Check if Peloton Interactive pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Peloton Interactive's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Peloton Interactive stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Peloton Interactive is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Peloton Interactive Stock
Researching Peloton Interactive's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 95.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.05. Peloton Interactive recorded a loss per share of 1.07. The entity had not issued any dividends in recent years.
To determine if Peloton Interactive is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Peloton Interactive's research are outlined below:
| Peloton Interactive had very high historical volatility over the last 90 days | |
| Peloton Interactive has a very high chance of going through financial distress in the upcoming years | |
| The company reported the previous year's revenue of 2.7 B. Net Loss for the year was (551.9 M) with profit before overhead, payroll, taxes, and interest of 1.23 B. | |
| Peloton Interactive currently holds about 1.25 B in cash with (66.1 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.7. | |
| Over 95.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Why Peloton Interactive Is Crashing |
Peloton Interactive uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Peloton Interactive. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Peloton Interactive's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of August 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Peloton Interactive's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Peloton Interactive's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-05-06 | 2020-03-31 | -0.18 | -0.2 | -0.02 | 11 | ||
2024-08-21 | 2024-06-30 | -0.17 | -0.22 | -0.05 | 29 | ||
2024-05-02 | 2024-03-31 | -0.37 | -0.43 | -0.06 | 16 | ||
2023-11-02 | 2023-09-30 | -0.35 | -0.44 | -0.09 | 25 | ||
2021-05-05 | 2021-03-31 | -0.12 | -0.03 | 0.09 | 75 | ||
2021-02-04 | 2020-12-31 | 0.09 | 0.18 | 0.09 | 100 | ||
2020-11-05 | 2020-09-30 | 0.11 | 0.2 | 0.09 | 81 | ||
2021-11-04 | 2021-09-30 | -1.07 | -1.21 | -0.14 | 13 |
Know Peloton Interactive's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Peloton Interactive is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Peloton Interactive backward and forwards among themselves. Peloton Interactive's institutional investor refers to the entity that pools money to purchase Peloton Interactive's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | State Street Corp | 2024-09-30 | 7.8 M | Capital World Investors | 2024-09-30 | 7.7 M | Two Sigma Investments Llc | 2024-09-30 | 7.7 M | Two Sigma Advisers, Llc | 2024-09-30 | 7.4 M | D. E. Shaw & Co Lp | 2024-09-30 | 6.4 M | Millennium Management Llc | 2024-09-30 | 5.3 M | Patients Capital Management Llc | 2024-09-30 | 5.1 M | Goldman Sachs Group Inc | 2024-09-30 | 5 M | Charles Schwab Investment Management Inc | 2024-09-30 | 4 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 40.8 M | Vanguard Group Inc | 2024-09-30 | 33.4 M |
Peloton Interactive's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.08 B.Market Cap |
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Peloton Interactive's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.30) | (0.31) | |
| Return On Capital Employed | (0.41) | (0.43) | |
| Return On Assets | (0.29) | (0.30) | |
| Return On Equity | 0.96 | 1.00 |
Determining Peloton Interactive's profitability involves analyzing its financial statements and using various financial metrics to determine if Peloton Interactive is a good buy. For example, gross profit margin measures Peloton Interactive's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Peloton Interactive's profitability and make more informed investment decisions.
Peloton Interactive's Earnings Breakdown by Geography
Evaluate Peloton Interactive's management efficiency
Peloton Interactive has return on total asset (ROA) of (0.0688) % which means that it has lost $0.0688 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (8.4735) %, meaning that it created substantial loss on money invested by shareholders. Peloton Interactive's management efficiency ratios could be used to measure how well Peloton Interactive manages its routine affairs as well as how well it operates its assets and liabilities. As of the 31st of January 2025, Return On Equity is likely to grow to 1.00, while Return On Tangible Assets are likely to drop (0.31). At this time, Peloton Interactive's Total Current Assets are very stable compared to the past year. As of the 31st of January 2025, Intangibles To Total Assets is likely to grow to 0.05, while Total Assets are likely to drop about 2.4 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (1.63) | (1.55) | |
| Tangible Book Value Per Share | (1.81) | (1.72) | |
| Enterprise Value Over EBITDA | (6.99) | (7.34) | |
| Price Book Value Ratio | (2.63) | (2.50) | |
| Enterprise Value Multiple | (6.99) | (7.34) | |
| Price Fair Value | (2.63) | (2.50) | |
| Enterprise Value | 3 B | 2.8 B |
The management team at Peloton Interactive has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 1.927 |
Basic technical analysis of Peloton Stock
As of the 31st of January, Peloton Interactive holds the Coefficient Of Variation of 996.12, risk adjusted performance of 0.0924, and Semi Deviation of 4.61. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Peloton Interactive, as well as the relationship between them.Peloton Interactive's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Peloton Interactive insiders, such as employees or executives, is commonly permitted as long as it does not rely on Peloton Interactive's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Peloton Interactive insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Peloton Interactive's Outstanding Corporate Bonds
Peloton Interactive issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Peloton Interactive uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Peloton bonds can be classified according to their maturity, which is the date when Peloton Interactive has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Peloton Interactive's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Peloton Interactive's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0924 | |||
| Market Risk Adjusted Performance | 0.3525 | |||
| Mean Deviation | 3.72 | |||
| Semi Deviation | 4.61 | |||
| Downside Deviation | 5.0 | |||
| Coefficient Of Variation | 996.12 | |||
| Standard Deviation | 5.61 | |||
| Variance | 31.44 | |||
| Information Ratio | 0.0826 | |||
| Jensen Alpha | 0.4078 | |||
| Total Risk Alpha | (0.05) | |||
| Sortino Ratio | 0.0926 | |||
| Treynor Ratio | 0.3425 | |||
| Maximum Drawdown | 42.53 | |||
| Value At Risk | (7.64) | |||
| Potential Upside | 8.37 | |||
| Downside Variance | 25.03 | |||
| Semi Variance | 21.22 | |||
| Expected Short fall | (3.96) | |||
| Skewness | 1.46 | |||
| Kurtosis | 8.24 |
| Risk Adjusted Performance | 0.0924 | |||
| Market Risk Adjusted Performance | 0.3525 | |||
| Mean Deviation | 3.72 | |||
| Semi Deviation | 4.61 | |||
| Downside Deviation | 5.0 | |||
| Coefficient Of Variation | 996.12 | |||
| Standard Deviation | 5.61 | |||
| Variance | 31.44 | |||
| Information Ratio | 0.0826 | |||
| Jensen Alpha | 0.4078 | |||
| Total Risk Alpha | (0.05) | |||
| Sortino Ratio | 0.0926 | |||
| Treynor Ratio | 0.3425 | |||
| Maximum Drawdown | 42.53 | |||
| Value At Risk | (7.64) | |||
| Potential Upside | 8.37 | |||
| Downside Variance | 25.03 | |||
| Semi Variance | 21.22 | |||
| Expected Short fall | (3.96) | |||
| Skewness | 1.46 | |||
| Kurtosis | 8.24 |
Consider Peloton Interactive's intraday indicators
Peloton Interactive intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Peloton Interactive stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 273741.0 | |||
| Daily Balance Of Power | 0.0667 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 8.1 | |||
| Day Typical Price | 8.09 | |||
| Price Action Indicator | (0.02) | |||
| Period Momentum Indicator | 0.02 |
Peloton Interactive Corporate Filings
F4 | 21st of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 17th of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 3rd of January 2025 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
| 26th of December 2024 Other Reports | ViewVerify |
Peloton Stock media impact
Far too much social signal, news, headlines, and media speculation about Peloton Interactive that are available to investors today. That information is available publicly through Peloton media outlets and privately through word of mouth or via Peloton internal channels. However, regardless of the origin, that massive amount of Peloton data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Peloton Interactive news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Peloton Interactive relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Peloton Interactive's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Peloton Interactive alpha.
Peloton Interactive Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Peloton Interactive can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Peloton Interactive Historical Investor Sentiment
Investor biases related to Peloton Interactive's public news can be used to forecast risks associated with an investment in Peloton. The trend in average sentiment can be used to explain how an investor holding Peloton can time the market purely based on public headlines and social activities around Peloton Interactive. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Peloton Interactive's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Peloton Interactive and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Peloton Interactive news discussions. The higher the estimate score, the more favorable the investor's outlook on Peloton Interactive.
Peloton Interactive Maximum Pain Price Across April 17th 2025 Option Contracts
Peloton Interactive's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Peloton Interactive close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Peloton Interactive's options.
Peloton Interactive Corporate Management
| Jennifer Cotter | Chief Officer | Profile | |
| Barry McCarthy | Strategic Advisor | Profile | |
| Tammy Albarran | Chief Secretary | Profile | |
| Marsh CFA | Senior Relations | Profile | |
| Nick Caldwell | Chief Officer | Profile | |
| Liz Coddington | Chief Officer | Profile | |
| Thomas Cortese | CoFounder Officer | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Peloton Interactive. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. To learn how to invest in Peloton Stock, please use our How to Invest in Peloton Interactive guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Leisure Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Peloton Interactive. If investors know Peloton will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Peloton Interactive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.07) | Revenue Per Share | Quarterly Revenue Growth (0.02) | Return On Assets | Return On Equity |
The market value of Peloton Interactive is measured differently than its book value, which is the value of Peloton that is recorded on the company's balance sheet. Investors also form their own opinion of Peloton Interactive's value that differs from its market value or its book value, called intrinsic value, which is Peloton Interactive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Peloton Interactive's market value can be influenced by many factors that don't directly affect Peloton Interactive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Peloton Interactive's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Peloton Interactive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Peloton Interactive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.