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REDDIT INC-CL A (1RDDT.MI) Stock Fundamental Analysis

BIT:1RDDT - Euronext Milan - US75734B1008 - Common Stock - Currency: EUR

149.62  -9.26 (-5.83%)

Fundamental Rating

5

Overall 1RDDT gets a fundamental rating of 5 out of 10. We evaluated 1RDDT against 24 industry peers in the Interactive Media & Services industry. 1RDDT has a great financial health rating, but its profitability evaluates not so good. 1RDDT shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

In the past year 1RDDT has reported negative net income.
1RDDT had a positive operating cash flow in the past year.
In the past 5 years 1RDDT always reported negative net income.
In the past 5 years 1RDDT reported 4 times negative operating cash flow.
1RDDT.MI Yearly Net Income VS EBIT VS OCF VS FCF1RDDT.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 0 200M -200M -400M

1.2 Ratios

1RDDT has a Return On Assets of -20.73%. This is amonst the worse of the industry: 1RDDT underperforms 84.62% of its industry peers.
Looking at the Return On Equity, with a value of -22.73%, 1RDDT is doing worse than 65.38% of the companies in the same industry.
Industry RankSector Rank
ROA -20.73%
ROE -22.73%
ROIC N/A
ROA(3y)-12.11%
ROA(5y)-11.08%
ROE(3y)-13.26%
ROE(5y)-12.17%
ROIC(3y)N/A
ROIC(5y)N/A
1RDDT.MI Yearly ROA, ROE, ROIC1RDDT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 -5 -10 -15 -20

1.3 Margins

1RDDT's Gross Margin of 90.49% is amongst the best of the industry. 1RDDT outperforms 84.62% of its industry peers.
In the last couple of years the Gross Margin of 1RDDT has grown nicely.
The Profit Margin and Operating Margin are not available for 1RDDT so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 90.49%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
GM growth 5YN/A
1RDDT.MI Yearly Profit, Operating, Gross Margins1RDDT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 80

8

2. Health

2.1 Basic Checks

1RDDT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for 1RDDT has been increased compared to 1 year ago.
1RDDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
1RDDT.MI Yearly Shares Outstanding1RDDT.MI Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 50M 100M 150M
1RDDT.MI Yearly Total Debt VS Total Assets1RDDT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

1RDDT has an Altman-Z score of 85.75. This indicates that 1RDDT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 85.75, 1RDDT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
There is no outstanding debt for 1RDDT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 85.75
ROIC/WACCN/A
WACC8.96%
1RDDT.MI Yearly LT Debt VS Equity VS FCF1RDDT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

1RDDT has a Current Ratio of 12.63. This indicates that 1RDDT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 12.63, 1RDDT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1RDDT has a Quick Ratio of 12.63. This indicates that 1RDDT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of 1RDDT (12.63) is better than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 12.63
Quick Ratio 12.63
1RDDT.MI Yearly Current Assets VS Current Liabilites1RDDT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

7

3. Growth

3.1 Past

The earnings per share for 1RDDT have decreased strongly by -431.05% in the last year.
1RDDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 61.71%.
The Revenue has been growing by 38.93% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-431.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%233.08%
Revenue 1Y (TTM)61.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%71.25%

3.2 Future

Based on estimates for the next years, 1RDDT will show a very strong growth in Earnings Per Share. The EPS will grow by 34.80% on average per year.
Based on estimates for the next years, 1RDDT will show a very strong growth in Revenue. The Revenue will grow by 33.19% on average per year.
EPS Next Y114.58%
EPS Next 2Y51.38%
EPS Next 3Y34.8%
EPS Next 5YN/A
Revenue Next Year41.35%
Revenue Next 2Y35.19%
Revenue Next 3Y33.19%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
1RDDT.MI Yearly Revenue VS Estimates1RDDT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
1RDDT.MI Yearly EPS VS Estimates1RDDT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 -4 -6

2

4. Valuation

4.1 Price/Earnings Ratio

1RDDT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 144.09 indicates a quite expensive valuation of 1RDDT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1RDDT is on the same level as its industry peers.
1RDDT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 144.09
1RDDT.MI Price Earnings VS Forward Price Earnings1RDDT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 100

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, 1RDDT is valued a bit more expensive than 69.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 136.16
EV/EBITDA N/A
1RDDT.MI Per share data1RDDT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as 1RDDT's earnings are expected to grow with 34.80% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.38%
EPS Next 3Y34.8%

0

5. Dividend

5.1 Amount

No dividends for 1RDDT!.
Industry RankSector Rank
Dividend Yield N/A

REDDIT INC-CL A

BIT:1RDDT (3/6/2025, 7:00:00 PM)

149.62

-9.26 (-5.83%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)05-05 2025-05-05
Inst Owners83.45%
Inst Owner ChangeN/A
Ins Owners9.73%
Ins Owner ChangeN/A
Market Cap27.07B
Analysts77.04
Price Target205.75 (37.52%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)177.74%
Min EPS beat(2)40.18%
Max EPS beat(2)315.29%
EPS beat(4)4
Avg EPS beat(4)111.34%
Min EPS beat(4)7.85%
Max EPS beat(4)315.29%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)6.32%
Min Revenue beat(2)3.47%
Max Revenue beat(2)9.17%
Revenue beat(4)4
Avg Revenue beat(4)8.32%
Min Revenue beat(4)3.47%
Max Revenue beat(4)11.92%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)19.54%
PT rev (3m)N/A
EPS NQ rev (1m)126.88%
EPS NQ rev (3m)N/A
EPS NY rev (1m)29.08%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)3.55%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.36%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 144.09
P/S 22.6
P/FCF 136.16
P/OCF 132.33
P/B 13.79
P/tB 14.24
EV/EBITDA N/A
EPS(TTM)-7.12
EYN/A
EPS(NY)1.04
Fwd EY0.69%
FCF(TTM)1.1
FCFY0.73%
OCF(TTM)1.13
OCFY0.76%
SpS6.62
BVpS10.85
TBVpS10.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -20.73%
ROE -22.73%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 90.49%
FCFM 16.6%
ROA(3y)-12.11%
ROA(5y)-11.08%
ROE(3y)-13.26%
ROE(5y)-12.17%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
GM growth 5YN/A
F-Score6
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 39.94%
Cap/Sales 0.48%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 12.63
Quick Ratio 12.63
Altman-Z 85.75
F-Score6
WACC8.96%
ROIC/WACCN/A
Cap/Depr(3y)62.94%
Cap/Depr(5y)85.65%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-431.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%233.08%
EPS Next Y114.58%
EPS Next 2Y51.38%
EPS Next 3Y34.8%
EPS Next 5YN/A
Revenue 1Y (TTM)61.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%71.25%
Revenue Next Year41.35%
Revenue Next 2Y35.19%
Revenue Next 3Y33.19%
Revenue Next 5YN/A
EBIT growth 1Y-299.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year188.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y354.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y395.64%
OCF growth 3YN/A
OCF growth 5YN/A