Okay folks, I'm really struggling with this one. Nautilus (makers of Bowflex) have completely repositioned their company to be a “digitally connected home fitness” company with the release of their JRNY app and new equipment with built in screens, a huge pivot from the Bowflex we remember from their informercial days. The entire company is only valued at $50m which is roughly 1/6 of their annual sales and 1/60 the market cap of Peloton despite them now essentially having the exact same business model. They are forecasting revenue of $1b by 2026 and are on their way to having 500,000 JRNY members within the next few months. Approximately 1/3 of those are paying subscribers. They also have a massive, global brand recognition. Everyone knows what a Bowflex is.
I believe the that their IP alone is worth about $50m and they are actually worth between $300 – $500m when you factor in anticipated sales increases. They only started selling fitness equipment with bluetooth/digital connectivity in the last 2-3 years or so. Not too mention they just added Motion Tracking to their app a few days ago.
Is anyone able to be make a reasonable argument why this company is worth less than $50m?
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