The Beachbody Company, Inc.

The Beachbody Company, Inc. (NYSE: BODY) is a health and wellness platform provider. The company offers fitness, nutrition, and stress-reduction programs. The company has created fitness digital streaming platforms with a content library that includes over 80 comprehensive workout programs and 2,300 streaming workouts.

Key Highlights

• The company reported YoY growth of 1.16% in revenues to USD 873.65 million in FY21 (ended December 31, 2021) compared to USD 863.58 million in FY20.
• BODY's net loss increased to USD 228.38 million during FY21 vs. USD 21.43 million in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 104.05 million and total debt of USD 7.13 million.
• BODY's Q3FY21 cash cycle of 74 days is significantly higher than the industry median of 8 days.
• Its ROE was -7.4% in Q3FY21 vs. the industry median of 1.5%.
• Negative Net Margin of 19.2% whereas Peer’s Median stood at 3.8%.
• On January 10, 2022, BODY announced the launch of its latest programme, aimed at assisting women through one of life's most thrilling and life-changing experiences – pregnancy.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• The stock is leaning towards the lower end of its 52-week range of USD 1.51 to USD 13.50.
• BODY's stock price decreased 71.30% and 78.32% in the past six and nine months, respectively.

Technical Price Chart (as of March 02, 2022). Source: REFINITIV, Analysis by Kalkine Group

Conclusion: Considering the flat topline, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 2.17, up 11.86%, as of March 02, 2022.

*The reference data in this report has been partly sourced from REFINITIV.