REDDIT INC-CL A (RDDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RDDT - US75734B1008 - Common Stock
233.635 USD
+0.44 (+0.19%)
We assign a fundamental rating of 6 out of 10 to RDDT. RDDT was compared to 70 industry peers in the Interactive Media & Services industry. RDDT has an excellent financial health rating, but there are some minor concerns on its profitability. RDDT is valued quite expensive, but it does show an excellent growth. These ratings could make RDDT a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
RDDT had positive 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 reported 4 times negative operating cash flow.
1.2 Ratios
RDDT has a better Return On Assets (12.14%) than 82.86% of its industry peers.
With an excellent Return On Equity value of 13.37%, RDDT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
RDDT has a Return On Invested Capital of 7.85%. This is amongst the best in the industry. RDDT outperforms 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 13.37% | ||
| ROIC | 7.85% |
ROA(3y)-12.11%
ROA(5y)-11.08%
ROE(3y)-13.26%
ROE(5y)-12.17%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RDDT (18.33%) is better than 84.29% of its industry peers.
The Operating Margin of RDDT (13.81%) is better than 80.00% of its industry peers.
RDDT has a better Gross Margin (91.21%) than 92.86% of its industry peers.
RDDT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.81% | ||
| PM (TTM) | 18.33% | ||
| GM | 91.21% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDDT is destroying value.
Compared to 1 year ago, RDDT has more shares outstanding
RDDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 101.36 indicates that RDDT is not in any danger for bankruptcy at the moment.
RDDT has a better Altman-Z score (101.36) than 100.00% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 101.36 |
ROIC/WACC0.75
WACC10.49%
2.3 Liquidity
RDDT has a Current Ratio of 12.13. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RDDT (12.13) is better than 95.71% of its industry peers.
RDDT has a Quick Ratio of 12.13. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
RDDT has a better Quick ratio (12.13) than 95.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12.13 | ||
| Quick Ratio | 12.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 153.82% over the past year.
RDDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 69.71%.
RDDT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.93% yearly.
EPS 1Y (TTM)153.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
Revenue 1Y (TTM)69.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%67.91%
3.2 Future
RDDT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.88% yearly.
The Revenue is expected to grow by 35.99% on average over the next years. This is a very strong growth
EPS Next Y130.05%
EPS Next 2Y57.81%
EPS Next 3Y38.88%
EPS Next 5YN/A
Revenue Next Year67.38%
Revenue Next 2Y52.19%
Revenue Next 3Y44.04%
Revenue Next 5Y35.99%
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.
4. Valuation
4.1 Price/Earnings Ratio
RDDT is valuated quite expensively with a Price/Earnings ratio of 134.27.
RDDT's Price/Earnings is on the same level as the industry average.
RDDT is valuated expensively when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
RDDT is valuated quite expensively with a Price/Forward Earnings ratio of 61.61.
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 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.27 | ||
| Fwd PE | 61.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RDDT is on the same level as its industry peers.
RDDT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.87 | ||
| EV/EBITDA | 145.7 |
4.3 Compensation for Growth
RDDT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RDDT has a very decent profitability rating, which may justify a higher PE ratio.
RDDT's earnings are expected to grow with 38.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y57.81%
EPS Next 3Y38.88%
5. Dividend
5.1 Amount
No dividends for RDDT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:RDDT (12/22/2025, 12:57:09 PM)
233.635
+0.44 (+0.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.93%
Inst Owner Change4.78%
Ins Owners0.61%
Ins Owner Change-21.54%
Market Cap44.27B
Revenue(TTM)1.90B
Net Income(TTM)349.15M
Analysts78.18
Price Target247.4 (5.89%)
Short Float %13.79%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)93.69%
Min EPS beat(2)53.96%
Max EPS beat(2)133.43%
EPS beat(4)4
Avg EPS beat(4)180.09%
Min EPS beat(4)40.18%
Max EPS beat(4)492.8%
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)10.03%
Min Revenue beat(2)5.08%
Max Revenue beat(2)14.99%
Revenue beat(4)4
Avg Revenue beat(4)6.87%
Min Revenue beat(4)3.47%
Max Revenue beat(4)14.99%
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)3.67%
PT rev (3m)17.12%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)20.88%
EPS NY rev (1m)7.58%
EPS NY rev (3m)25.63%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)5.51%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.27 | ||
| Fwd PE | 61.61 | ||
| P/S | 23.25 | ||
| P/FCF | 86.87 | ||
| P/OCF | 86.13 | ||
| P/B | 16.96 | ||
| P/tB | 17.36 | ||
| EV/EBITDA | 145.7 |
EPS(TTM)1.74
EY0.74%
EPS(NY)3.79
Fwd EY1.62%
FCF(TTM)2.69
FCFY1.15%
OCF(TTM)2.71
OCFY1.16%
SpS10.05
BVpS13.78
TBVpS13.46
PEG (NY)1.03
PEG (5Y)N/A
Graham Number23.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 13.37% | ||
| ROCE | 9.93% | ||
| ROIC | 7.85% | ||
| ROICexc | 49.21% | ||
| ROICexgc | 57.39% | ||
| OM | 13.81% | ||
| PM (TTM) | 18.33% | ||
| GM | 91.21% | ||
| FCFM | 26.76% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 27.47% | ||
| Cap/Sales | 0.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 184.26% | ||
| Profit Quality | 145.98% | ||
| Current Ratio | 12.13 | ||
| Quick Ratio | 12.13 | ||
| Altman-Z | 101.36 |
F-Score8
WACC10.49%
ROIC/WACC0.75
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)153.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
EPS Next Y130.05%
EPS Next 2Y57.81%
EPS Next 3Y38.88%
EPS Next 5YN/A
Revenue 1Y (TTM)69.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%67.91%
Revenue Next Year67.38%
Revenue Next 2Y52.19%
Revenue Next 3Y44.04%
Revenue Next 5Y35.99%
EBIT growth 1Y143.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year239%
EBIT Next 3Y70.57%
EBIT Next 5Y47.93%
FCF growth 1Y610.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y650.29%
OCF growth 3YN/A
OCF growth 5YN/A
REDDIT INC-CL A / RDDT FAQ
What is the ChartMill fundamental rating of REDDIT INC-CL A (RDDT) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RDDT.
What is the valuation status of REDDIT INC-CL A (RDDT) stock?
ChartMill assigns a valuation rating of 3 / 10 to REDDIT INC-CL A (RDDT). This can be considered as Overvalued.
How profitable is REDDIT INC-CL A (RDDT) stock?
REDDIT INC-CL A (RDDT) has a profitability rating of 6 / 10.
What are the PE and PB ratios of REDDIT INC-CL A (RDDT) stock?
The Price/Earnings (PE) ratio for REDDIT INC-CL A (RDDT) is 134.27 and the Price/Book (PB) ratio is 16.96.
Can you provide the financial health for RDDT stock?
The financial health rating of REDDIT INC-CL A (RDDT) is 8 / 10.