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REDDIT INC-CL A (RDDT) Stock Fundamental Analysis

NYSE:RDDT - New York Stock Exchange, Inc. - US75734B1008 - Common Stock - Currency: USD

205.71  -10.76 (-4.97%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to RDDT. RDDT was compared to 71 industry peers in the Interactive Media & Services industry. RDDT has a great financial health rating, but its profitability evaluates not so good. RDDT is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

RDDT had negative earnings in the past year.
In the past year RDDT had a positive cash flow from operations.
RDDT had negative earnings in each of the past 5 years.
In the past 5 years RDDT always reported negative operating cash flow.
RDDT Yearly Net Income VS EBIT VS OCF VS FCFRDDT 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

The Return On Assets of RDDT (-24.72%) is worse than 74.24% of its industry peers.
The Return On Equity of RDDT (-27.14%) is comparable to the rest of the industry.
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
RDDT Yearly ROA, ROE, ROICRDDT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 -2 -4 -6 -8 -10

1.3 Margins

Looking at the Gross Margin, with a value of 89.25%, RDDT belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
RDDT's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for RDDT so they could not be analyzed.
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
RDDT Yearly Profit, Operating, Gross MarginsRDDT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 0 20 -20 40 60 80

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8

2. Health

2.1 Basic Checks

RDDT does not have a ROIC to compare to the WACC, probably because it is not profitable.
RDDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RDDT Yearly Shares OutstandingRDDT Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 50M 100M 150M
RDDT Yearly Total Debt VS Total AssetsRDDT 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 117.30 indicates that RDDT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 117.30, RDDT belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
There is no outstanding debt for RDDT. 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 117.3
ROIC/WACCN/A
WACC9.18%
RDDT Yearly LT Debt VS Equity VS FCFRDDT 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 RDDT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 11.96, RDDT belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
A Quick Ratio of 11.96 indicates that RDDT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 11.96, RDDT belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 11.96
Quick Ratio 11.96
RDDT Yearly Current Assets VS Current LiabilitesRDDT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 500M 1B 1.5B

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3

3. Growth

3.1 Past

EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%71.26%

3.2 Future

Based on estimates for the next years, RDDT will show a very strong growth in Earnings Per Share. The EPS will grow by 50.09% on average per year.
The Revenue is expected to grow by 32.99% on average over the next years. This is a very strong growth
EPS Next Y111.3%
EPS Next 2Y50.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year36.75%
Revenue Next 2Y32.99%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

RDDT Yearly Revenue VS EstimatesRDDT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
RDDT Yearly EPS VS EstimatesRDDT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 0 -2 -4 -6

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2

4. Valuation

4.1 Price/Earnings Ratio

RDDT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 235.53, which means the current valuation is very expensive for RDDT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RDDT is on the same level as its industry peers.
RDDT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 96.58.
Industry RankSector Rank
PE N/A
Fwd PE 235.53
RDDT Price Earnings VS Forward Price EarningsRDDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 100 150 200

4.2 Price Multiples

RDDT's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 345.2
EV/EBITDA N/A
RDDT Per share dataRDDT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RDDT's earnings are expected to grow with 50.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.09%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

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

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REDDIT INC-CL A

NYSE:RDDT (2/13/2025, 10:36:10 AM)

205.71

-10.76 (-4.97%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)N/A N/A
Inst Owners39.38%
Inst Owner Change-44.12%
Ins Owners13.02%
Ins Owner Change-10.12%
Market Cap36.12B
Analysts77.6
Price Target183.76 (-10.67%)
Short Float %19.87%
Short Ratio3.15
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
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)20.53%
PT rev (3m)145.41%
EPS NQ rev (1m)7.61%
EPS NQ rev (3m)7.22%
EPS NY rev (1m)4.29%
EPS NY rev (3m)7.55%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.62%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 235.53
P/S 32.18
P/FCF 345.2
P/OCF 315.07
P/B 18.26
P/tB 18.93
EV/EBITDA N/A
EPS(TTM)-7.73
EYN/A
EPS(NY)0.87
Fwd EY0.42%
FCF(TTM)0.6
FCFY0.29%
OCF(TTM)0.65
OCFY0.32%
SpS6.39
BVpS11.26
TBVpS10.86
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 117.3
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)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y111.3%
EPS Next 2Y50.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%71.26%
Revenue Next Year36.75%
Revenue Next 2Y32.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-253.14%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year299.56%
EBIT Next 3Y97.78%
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