Should you buy Peloton stock? (April 2024)

Published first at https://www.3minutebreakdowns.com Peloton stock analysis. Ticker: $PTON During the pandemic, Peloton hit a peak market cap of almost 50 billion dollars. Today, the company is worth just $1.4 billion. With $1.7 billion of debt on the books, the total enterprise value is 2.3 billion. Fundamentally, Peloton looks like a disaster. Net income over the last 12 months is negative 872 million, free cash flow is negative 250 million. Even adjusted ebitda is minus 126 million. And Peloton lacks not only profits but growth. Revenue fell 22% last year and 11% the year before. The bond market is also pessimistic with Peloton’s convertible bond pricing in a small chance of bankruptcy within the next two years. However, there are some glimmers of hope. CEO Barry McCarthy, who took over in 2022, has revamped the company’s cost structure, outsourced manufacturing and rebuilt customer service. Peloton’s connected fitness products now at least have a positive gross margin. McCarthy expects Peloton to report positive free cash flow in the fourth quarter and if it does so, Peloton will have finally stopped the bleeding. #stocks #investing #stockmarket #3mb