Xponential Fitness (XPOF), mcap=$1.1bn, price $22.68 vs $17.60

XPOF pitch:
– Leader in the boutique fitness market – pilates, barre, indoor cycling, yoga, etc.
– Asset-light and scalable franchise business model.
– Similar to $PLNT in its early innings when its stock exhibited lackluster appreciation, but which saw a rapid share price increase after a period of continued solid growth and execution.
– Expected revenue CAGR of 30% with EBITDA margins set to double to 40%+ in the next 3 years.

XPOF valuation:
– Trades at 11.7x FY23 EBITDA.
– FY23 EPS of roughly $1.00/share growing to $2.50-$3.00+ in 5 years.
– Expected to trade at 30x PE, translating into a $75-$90 target price.

Exp. gain: 4x-5x over the next 5 years

Full XPOF write-up (free guest account required):