Nautilus stock is a BUY, here’s what they sell

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Nautilus stock

Nautilus stock is a BUY. As part of my research for the “Beta than the S&p 600” portfolio, I recently bought shares of Nautilus at $15.90.  I set a price target of $21.

Have you ever seen a BowFlex commercial? I used to see them all the time either early in the morning as an infomercial or while watching sports channels. Nautilus produces home gyms, cardio equipment, and other fitness products and Bowflex is just one of their brands.

Who doesn’t want to lose weight or have a great physique? Most of us dream of having washboard abs but only a small percentage of the population achieve that level of physical fitness. If there were a product that made it easy like just taking a pill then we would all spend our money on that for the easy way out. Unfortunately it’s not that easy and being in shape takes hard work and dedication. Nautilus has a variety of products that helps make the fitness journey more convenient.

I recently wrote an article on Seeking Alpha explaining three reasons I like the stock right now. Rather than write one long article covering everything I thought it would be better to write several covering various topics related to the company.

This one covers some of the products Nautilus offers and is less focused on the financials of the company.

About Nautilus’ Brands

Nautilus Stock

Nautilus ® is our corporate umbrella brand and is also used to differentiate certain specialized cardio, treadmills, ellipticals and bike products.
Our Bowflex ® brand represents a highly-regarded line of fitness equipment comprised of both cardio and strength products, including the Max Trainer ® and TreadClimber ® specialized cardio machines, PowerRod ® and Revolution ® home gyms and SelectTech ® dumbbells.
Our Octane Fitness ® brand is known for its innovation around low-impact cardio products, including the perfection of the traditional elliptical machine, along with the creation of new categories of exercise, including the xRide ® recumbent elliptical, the LateralX ® elliptical, and the Zero Runner ® .
Our Schwinn ® brand is known for its popular line of exercise bikes, including the Airdyne ® , treadmills, and ellipticals.
Our Universal ® brand, one of the oldest and most recognized names in the fitness industry, currently offers a line of kettlebell weights and weight benches along with a recently launched cardio line.
  Source: Nautilus 10-K

 Cardio Equipment

About 82% of Nautilus’ sales comes from cardio equipment. The company attributes their recent sales growth in large part due to the Max Trainer.

The Max Trainer comes in three models: the M3, M5, and M7. Oddly enough BMW uses some of the same models for their cars.

Nautilus stock

The company markets the Max Trainer on a few key selling points.

  • Burn Calories Faster – Company claims Max Trainer burns more calories than treadmills, stepclimbers, and ellipticals in 30 minutes.
  • 14 Minute Work Outs – Rather than working out for 30+ minutes, suggests 14 minutes is all you need
  • Compact Design – The length comes in at about 3.5 feet and the width is about 2.5 feet.

The price ranges from $999 to $2,199 between the three models.

The company also produces standard cardio equipment such as treadmills and elliptical machines. The recently acquired Octane Fitness brand specializes in zero-impact cardio equipment.

Home Gyms


Nautilus Stock

 

Source: Bowflex.com

My gym membership costs about $50 a month. A Bowflex home gym can be purchased for less than the annual cost of a gym membership. The Bowlex PR1000 Home Gym is currently offered on Amazon for $379. Given the number of exercises can be done with this machine, it seems like a good value. Their home gyms can range as high as an MSRP of $2,999 for the Bowflex Revolution.

Exercises:

  • Bench Press
  • Decline Bench Press
  • Incline Bench Press
  • Seated Shoulder Press
  • Front Shoulder Raise
  • Crossover Seated Rear Delt Rows
  • Scapular Retraction
  • Narrow Pulldowns
  • Stiff-Arm Pulldowns
  • Seated Lat Rows
  • Reverse Grip Pulldown
  • Seated Low Back Extension
  • Triceps Pushdown
  • Triceps Extension
  • Standing Biceps Curl
  • Wrist Curl
  • Seated (Resisted) Abdominal Crunch
  • Trunk Rotation
  • Leg Extension
  • Calf Raise
  • Seated Hip Adduction
  • Seated Hip Abduction
  • Leg Kickback
  • Leg Press

When I purchase a product, especially something over $100, I do an excessive amount of research. I read tons of reviews to make sure I am making the right choice. I like Amazon because they tend to offer a good amount of positive and negative reviews. Of the Bowflex gyms I looked at the lowest rated was 4 stars. Now, I realize this is a very small sample but it’s good to see customers are generally happy with their purchase.

Nautilus Stock

SelectTech Dumbbell Sets

Several years ago I followed the P90X program and had to buy dumbbells for some of the videos. As I became stronger, I had to go buy more dumbbells at higher weights. At the time, I’m not sure SelectTech dumbbell sets were available but they would have been much easier to store and use.

Nautilus Stock

These dumbbell sets can be adjusted to a minimum of 52 pounds per dumbbell. The 1090 set goes as high as 90 pounds per dumbbell. There is a dial that is turned to set the appropriate weight, the weight is then locked in, and the unused weights remain on the storage base. This makes switching between weights quick and easy. In addition, I like the compact storage compared to a full set of individual dumbbells.

Have you used any of Nautilus’ products?

My gym has quite a few Nautilus strength training machines so I have used some of them. I haven’t ordered a product directly from them.

Feel free to leave a comment if you have any thoughts or comments on Nautilus’ products. I’d be interested to hear what you think.

Stay tuned for more updates on Nautilus and become a subscriber to be e-mailed when I post new stock picks.

 

 

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