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

BIT:1RDDT - Borsa Italiana Milan - US75734B1008 - Common Stock - Currency: EUR

207.2  +11.1 (+5.66%)

Fundamental Rating

5

1RDDT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 23 industry peers in the Interactive Media & Services industry. No worries on liquidiy or solvency for 1RDDT as it has an excellent financial health rating, but there are worries on the profitability. 1RDDT is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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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.
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 -50M -100M -150M

1.2 Ratios

Looking at the Return On Assets, with a value of -24.72%, 1RDDT is doing worse than 95.00% of the companies in the same industry.
With a Return On Equity value of -27.14%, 1RDDT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -24.72%
ROE -27.14%
ROIC N/A
ROA(3y)-7.79%
ROA(5y)N/A
ROE(3y)-8.41%
ROE(5y)N/A
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 -2 -4 -6 -8 -10

1.3 Margins

With an excellent Gross Margin value of 89.25%, 1RDDT belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
1RDDT's Gross Margin has improved in the last couple of years.
1RDDT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 89.25%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.3%
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 0 20 -20 40 60 80

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9

2. Health

2.1 Basic Checks

1RDDT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, 1RDDT has about the same amount of shares outstanding.
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.
1RDDT.MI Yearly Shares Outstanding1RDDT.MI Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 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 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 116.04 indicates that 1RDDT is not in any danger for bankruptcy at the moment.
1RDDT has a better Altman-Z score (116.04) than 100.00% of its industry peers.
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 116.04
ROIC/WACCN/A
WACC9.18%
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 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 11.96 indicates that 1RDDT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 11.96, 1RDDT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 11.96 indicates that 1RDDT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 11.96, 1RDDT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 11.96
Quick Ratio 11.96
1RDDT.MI Yearly Current Assets VS Current Liabilites1RDDT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 500M 1B 1.5B

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7

3. Growth

3.1 Past

1RDDT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -298.40%.
Looking at the last year, 1RDDT shows a very strong growth in Revenue. The Revenue has grown by 48.70%.
Measured over the past years, 1RDDT shows a very strong growth in Revenue. The Revenue has been growing by 52.01% on average per year.
EPS 1Y (TTM)-298.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%410.44%
Revenue 1Y (TTM)48.7%
Revenue growth 3Y52.01%
Revenue growth 5YN/A
Sales Q2Q%67.87%

3.2 Future

1RDDT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 76.98% yearly.
The Revenue is expected to grow by 42.69% on average over the next years. This is a very strong growth
EPS Next Y-664.16%
EPS Next 2Y89.3%
EPS Next 3Y76.98%
EPS Next 5YN/A
Revenue Next Year67.62%
Revenue Next 2Y50.67%
Revenue Next 3Y42.69%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
1RDDT.MI Yearly Revenue VS Estimates1RDDT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
1RDDT.MI Yearly EPS VS Estimates1RDDT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 0 -2 -4

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for 1RDDT. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 245.19, the valuation of 1RDDT can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1RDDT.
1RDDT is valuated expensively when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 245.19
1RDDT.MI Price Earnings VS Forward Price Earnings1RDDT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 200

4.2 Price Multiples

1RDDT's Price/Free Cash Flow ratio is rather expensive when compared to the industry. 1RDDT is more expensive than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 359.35
EV/EBITDA N/A
1RDDT.MI Per share data1RDDT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

A more expensive valuation may be justified as 1RDDT's earnings are expected to grow with 76.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y89.3%
EPS Next 3Y76.98%

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0

5. Dividend

5.1 Amount

1RDDT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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REDDIT INC-CL A

BIT:1RDDT (2/4/2025, 7:00:00 PM)

207.2

+11.1 (+5.66%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)10-29 2024-10-29/amc
Earnings (Next)02-12 2025-02-12/amc
Inst Owners39.38%
Inst Owner ChangeN/A
Ins Owners13.02%
Ins Owner ChangeN/A
Market Cap36.38B
Analysts78.4
Price Target172.13 (-16.93%)
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)198.65%
Min EPS beat(2)82.01%
Max EPS beat(2)315.29%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)8.94%
Min Revenue beat(2)8.71%
Max Revenue beat(2)9.17%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 245.19
P/S 33.5
P/FCF 359.35
P/OCF 327.98
P/B 19.01
P/tB 19.71
EV/EBITDA N/A
EPS(TTM)-3.2
EYN/A
EPS(NY)0.85
Fwd EY0.41%
FCF(TTM)0.58
FCFY0.28%
OCF(TTM)0.63
OCFY0.3%
SpS6.18
BVpS10.9
TBVpS10.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -24.72%
ROE -27.14%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 89.25%
FCFM 9.32%
ROA(3y)-7.79%
ROA(5y)N/A
ROE(3y)-8.41%
ROE(5y)N/A
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 3Y4.3%
GM growth 5YN/A
F-Score6
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 65.68%
Cap/Sales 0.89%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 11.96
Quick Ratio 11.96
Altman-Z 116.04
F-Score6
WACC9.18%
ROIC/WACCN/A
Cap/Depr(3y)76.87%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.87%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-298.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%410.44%
EPS Next Y-664.16%
EPS Next 2Y89.3%
EPS Next 3Y76.98%
EPS Next 5YN/A
Revenue 1Y (TTM)48.7%
Revenue growth 3Y52.01%
Revenue growth 5YN/A
Sales Q2Q%67.87%
Revenue Next Year67.62%
Revenue Next 2Y50.67%
Revenue Next 3Y42.69%
Revenue Next 5YN/A
EBIT growth 1Y-253.14%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year305.2%
EBIT Next 3Y96.24%
EBIT Next 5YN/A
FCF growth 1Y15.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.11%
OCF growth 3YN/A
OCF growth 5YN/A