Peloton Faces Subscriber and Profitability Concerns, StockStory Says

StockStory said it was cautious on Peloton, citing declining connected-fitness subscribers, weak operating margins and its view that free-cash-flow projections disappoint. The publisher noted that the company had 2.55 million subscribers in its latest quarter, with the figure averaging 5.1% annual declines over the past two years.

Peloton’s operating margin averaged 2.5% over the last two years, according to StockStory, though it rose over the latest 12-month period. The publisher said analysts expect the company’s free-cash-flow margin, which was 15.4% over the last 12 months, to remain at that level over the next year.

StockStory described Peloton’s valuation at 15.2 times forward earnings as fair, but said it lacked confidence in the company. It pointed readers toward an unnamed endpoint-security platform as an alternative. The article did not identify that company.

Peloton was quoted at $5 in the article, which said its shares had gained 16.3% over six months, compared with a 16.6% return for the S&P 500. As of 16:24 UTC Thursday, Peloton shares traded at $4.96, down 0.6% since the previous close.