Latest news with #XPOF
Yahoo
07-07-2025
- Business
- Yahoo
Xponential Fitness (XPOF): Buy, Sell, or Hold Post Q1 Earnings?
Shareholders of Xponential Fitness would probably like to forget the past six months even happened. The stock dropped 29.4% and now trades at $10.10. This may have investors wondering how to approach the situation. Is there a buying opportunity in Xponential Fitness, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we're swiping left on Xponential Fitness for now. Here are three reasons why you should be careful with XPOF and a stock we'd rather own. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Xponential Fitness's recent performance shows its demand has slowed significantly as its annualized revenue growth of 9.3% over the last two years was well below its four-year trend. Note that COVID hurt Xponential Fitness's business in 2020 and part of 2021, and it bounced back in a big way thereafter. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Xponential Fitness's operating margin has shrunk over the last 12 months, and it ended up breaking even over the last two years. Although this result isn't good, the company's elite historical revenue growth suggests it ramped up investments to capture market share. We'll keep a close eye to see if this strategy pays off. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? A company's ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). Xponential Fitness's five-year average ROIC was negative 31.4%, meaning management lost money while trying to expand the business. Its returns were among the worst in the consumer discretionary sector. Xponential Fitness isn't a terrible business, but it isn't one of our picks. Following the recent decline, the stock trades at 9× forward P/E (or $10.10 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better investments elsewhere. We'd recommend looking at one of our top digital advertising picks. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
03-07-2025
- Business
- Yahoo
Why Is Xponential Fitness (XPOF) Stock Soaring Today
Shares of boutique fitness studio franchisor Xponential Fitness (NYSE:XPOF) jumped 34.1% in the afternoon session after the company announced that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into the company without recommending any enforcement action. The investigation, which began in December 2023, had been a significant overhang on the company's stock, which has fallen approximately 45% year-to-date. The probe was initiated after the SEC requested documents related to potential securities fraud and accounting issues. In a filing, Xponential stated it was informed on July 1 that the investigation was concluded and that no action would be taken. The company noted it had fully cooperated with the regulator over the past 18 months. This news removed a major cloud of uncertainty for investors, leading to a surge in confidence as reflected in the pre-market rally. Analysts at Jefferies noted that with the probe now cleared and new leadership in place, investor sentiment should improve, potentially allowing the stock's valuation to rise toward peer levels as the company focuses on its growth plans. Is now the time to buy Xponential Fitness? Access our full analysis report here, it's free. Xponential Fitness's shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for Xponential Fitness and indicate this news significantly impacted the market's perception of the business. Xponential Fitness is down 28.6% since the beginning of the year, and at $9.96 per share, it is trading 46.1% below its 52-week high of $18.47 from February 2025. Investors who bought $1,000 worth of Xponential Fitness's shares at the IPO in July 2021 would now be looking at an investment worth $812.65. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
3 of Wall Street's Favorite Stocks Skating on Thin Ice
The stocks in this article have caught Wall Street's attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory. Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street's estimates seem disconnected from reality and some better opportunities to consider. Consensus Price Target: $14.30 (73.3% implied return) Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences. Why Are We Hesitant About XPOF? Annual revenue growth of 14.3% over the last two years was below our standards for the consumer discretionary sector Poor expense management has led to operating losses Push for growth has led to negative returns on capital, signaling value destruction At $8.25 per share, Xponential Fitness trades at 4.8x forward P/E. Read our free research report to see why you should think twice about including XPOF in your portfolio, it's free. Consensus Price Target: $15 (71.4% implied return) Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors. Why Is IEP Risky? Sales tumbled by 16% annually over the last two years, showing market trends are working against its favor during this cycle Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 11.5 percentage points 50× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings Icahn Enterprises is trading at $8.75 per share, or 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than IEP. Consensus Price Target: $3.33 (25.5% implied return) With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe. Why Do We Think AMC Will Underperform? Products and services aren't resonating with the market as its revenue declined by 3.3% annually over the last five years Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Short cash runway increases the probability of a capital raise that dilutes existing shareholders AMC Entertainment's stock price of $2.65 implies a valuation ratio of 1.9x forward EV-to-EBITDA. If you're considering AMC for your portfolio, see our FREE research report to learn more. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Xponential Fitness (XPOF): Buy, Sell, or Hold Post Q4 Earnings?
Xponential Fitness has gotten torched over the last six months - since October 2024, its stock price has dropped 39.6% to $7.43 per share. This was partly due to its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in Xponential Fitness, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we're cautious about Xponential Fitness. Here are three reasons why there are better opportunities than XPOF and a stock we'd rather own. Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Xponential Fitness's recent performance shows its demand has slowed significantly as its annualized revenue growth of 14.3% over the last two years was well below its four-year trend. Note that COVID hurt Xponential Fitness's business in 2020 and part of 2021, and it bounced back in a big way thereafter. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Xponential Fitness's operating margin has shrunk over the last 12 months and averaged negative 2.7% over the last two years. Unprofitable, high-growth companies warrant extra scrutiny, especially if their margins fall because they're spending loads of money to stay relevant, an unsustainable practice. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Xponential Fitness's five-year average ROIC was negative 16.9%, meaning management lost money while trying to expand the business. Its returns were among the worst in the consumer discretionary sector. Xponential Fitness's business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 4.2× forward price-to-earnings (or $7.43 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better investments elsewhere. We'd suggest looking at our favorite semiconductor picks and shovels play. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
15-03-2025
- Business
- Yahoo
Xponential Fitness Full Year 2024 Earnings: EPS Misses Expectations
Revenue: US$320.3m (flat on FY 2023). Net loss: US$72.8m (down by 294% from US$37.5m profit in FY 2023). US$2.27 loss per share (down from US$1.18 profit in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates significantly. In the last 12 months, the only revenue segment was Business Services contributing US$320.3m. The largest operating expense was General & Administrative costs, amounting to US$176.9m (62% of total expenses). Explore how XPOF's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Hospitality industry in the US. Performance of the American Hospitality industry. The company's shares are down 41% from a week ago. Before you take the next step you should know about the 2 warning signs for Xponential Fitness (1 is potentially serious!) that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
