REDDIT INC-CL A (RDDT)
US75734B1008 - Common Stock
RDDT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Interactive Media & Services industry. While RDDT has a great health rating, there are worries on its profitability. RDDT is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
RDDT had negative earnings in the past year.
RDDT had a positive operating cash flow in the past year.
1.2 Ratios
With a Return On Assets value of -24.72%, RDDT is not doing good in the industry: 76.39% of the companies in the same industry are doing better.
RDDT has a Return On Equity (-27.14%) which is in line with its industry peers.
| Industry Rank | Sector 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
1.3 Margins
RDDT has a better Gross Margin (89.25%) than 88.89% of its industry peers.
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 Rank | Sector 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
2. Health
2.1 Basic Checks
RDDT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RDDT remains at a similar level compared to 1 year ago.
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.
2.2 Solvency
An Altman-Z score of 85.58 indicates that RDDT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 85.58, RDDT belongs to the top of the industry, outperforming 98.61% of the companies in the same industry.
RDDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 85.58 |
ROIC/WACCN/A
WACC9.05%
2.3 Liquidity
A Current Ratio of 11.96 indicates that RDDT has no problem at all paying its short term obligations.
The Current ratio of RDDT (11.96) is better than 95.83% of its industry peers.
A Quick Ratio of 11.96 indicates that RDDT has no problem at all paying its short term obligations.
RDDT has a Quick ratio of 11.96. This is amongst the best in the industry. RDDT outperforms 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.96 | ||
| Quick Ratio | 11.96 |
3. Growth
3.1 Past
RDDT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -298.40%.
Looking at the last year, RDDT shows a very strong growth in Revenue. The Revenue has grown by 48.70%.
RDDT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 52.01% yearly.
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
RDDT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 65.09% yearly.
The Revenue is expected to grow by 36.39% on average over the next years. This is a very strong growth
EPS Next Y-699.75%
EPS Next 2Y78.74%
EPS Next 3Y65.09%
EPS Next 5YN/A
Revenue Next Year61.44%
Revenue Next 2Y44.51%
Revenue Next 3Y36.39%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
RDDT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
RDDT is valuated quite expensively with a Price/Forward Earnings ratio of 215.57.
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 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 215.57 |
4.2 Price Multiples
RDDT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 246.36 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RDDT's earnings are expected to grow with 65.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y78.74%
EPS Next 3Y65.09%
5. Dividend
5.1 Amount
RDDT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
REDDIT INC-CL A
NYSE:RDDT (11/22/2024, 1:15:09 PM)
146.81
-11.21 (-7.09%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 215.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -24.72% | ||
| ROE | -27.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 89.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 11.96 | ||
| Quick Ratio | 11.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-298.4%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-699.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)48.7%
Revenue growth 3Y52.01%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y