REDDIT INC-CL A (RDDT)
US75734B1008 - Common Stock
Taking everything into account, RDDT scores 5 out of 10 in our fundamental rating. RDDT was compared to 71 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.
In the past year RDDT had a positive cash flow from operations.
1.2 Ratios
RDDT has a Return On Assets of -24.72%. This is in the lower half of the industry: RDDT underperforms 75.76% of its industry peers.
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's Gross Margin of 89.25% is amongst the best of the industry. RDDT outperforms 87.88% of its industry peers.
In the last couple of years the Gross Margin of RDDT has grown nicely.
RDDT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
Compared to 1 year ago, RDDT has about the same amount of 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
RDDT has an Altman-Z score of 96.28. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 96.28, RDDT belongs to the best of the industry, outperforming 98.48% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 96.28 |
ROIC/WACCN/A
WACC9.24%
2.3 Liquidity
RDDT has a Current Ratio of 11.96. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
RDDT has a Current ratio of 11.96. This is amongst the best in the industry. RDDT outperforms 96.97% of its industry peers.
RDDT has a Quick Ratio of 11.96. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
RDDT has a Quick ratio of 11.96. This is amongst the best in the industry. RDDT outperforms 96.97% 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%.
The Revenue has been growing by 52.01% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, RDDT will show a very strong growth in Earnings Per Share. The EPS will grow by 67.92% on average per year.
Based on estimates for the next years, RDDT will show a very strong growth in Revenue. The Revenue will grow by 38.67% on average per year.
EPS Next Y-672.54%
EPS Next 2Y79.71%
EPS Next 3Y67.92%
EPS Next 5YN/A
Revenue Next Year61.93%
Revenue Next 2Y46.35%
Revenue Next 3Y38.67%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RDDT. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 256.09, RDDT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RDDT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.67. RDDT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 256.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDDT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 301.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RDDT's earnings are expected to grow with 67.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y79.71%
EPS Next 3Y67.92%
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 (1/6/2025, 6:54:28 PM)
After market: 179.72 +0.23 (+0.13%)179.49
+1.75 (+0.98%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners39.38%
Inst Owner Change0.01%
Ins Owners13.02%
Ins Owner Change-10.55%
Market Cap31.51B
Analysts78.4
Price Target152.46 (-15.06%)
Short Float %17.34%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)30.65%
PT rev (3m)117.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)266.93%
EPS NY rev (1m)1.9%
EPS NY rev (3m)18.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)25.69%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)7.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 256.09 | ||
| P/S | 28.08 | ||
| P/FCF | 301.2 | ||
| P/OCF | 274.91 | ||
| P/B | 15.94 | ||
| P/tB | 16.52 | ||
| EV/EBITDA | N/A |
EPS(TTM)-3.31
EYN/A
EPS(NY)0.7
Fwd EY0.39%
FCF(TTM)0.6
FCFY0.33%
OCF(TTM)0.65
OCFY0.36%
SpS6.39
BVpS11.26
TBVpS10.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 96.28 |
F-Score6
WACC9.24%
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-672.54%
EPS Next 2Y79.71%
EPS Next 3Y67.92%
EPS Next 5YN/A
Revenue 1Y (TTM)48.7%
Revenue growth 3Y52.01%
Revenue growth 5YN/A
Sales Q2Q%67.87%
Revenue Next Year61.93%
Revenue Next 2Y46.35%
Revenue Next 3Y38.67%
Revenue Next 5YN/A
EBIT growth 1Y-253.14%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year298.23%
EBIT Next 3Y92.75%
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