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

BIT:1RDDT - Euronext Milan - US75734B1008 - Common Stock - Currency: EUR

85.89  +2.9 (+3.49%)

Fundamental Rating

5

Taking everything into account, 1RDDT scores 5 out of 10 in our fundamental rating. 1RDDT was compared to 21 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

2

1. Profitability

1.1 Basic Checks

In the past year 1RDDT has reported negative net income.
In the past year 1RDDT had a positive cash flow from operations.
1RDDT had negative earnings in each of the past 5 years.
In the past 5 years 1RDDT reported 4 times negative operating cash flow.
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 2024 0 200M -200M -400M

1.2 Ratios

With a Return On Assets value of -20.73%, 1RDDT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
The Return On Equity of 1RDDT (-22.73%) is worse than 66.67% of its industry peers.
Industry RankSector Rank
ROA -20.73%
ROE -22.73%
ROIC N/A
ROA(3y)-12.11%
ROA(5y)-11.08%
ROE(3y)-13.26%
ROE(5y)-12.17%
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 2024 -5 -10 -15 -20

1.3 Margins

The Gross Margin of 1RDDT (90.49%) is better than 85.71% of its industry peers.
In the last couple of years the Gross Margin of 1RDDT has grown nicely.
The Profit Margin and Operating Margin are not available for 1RDDT so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 90.49%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
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 2024 0 20 -20 40 -40 60 80

8

2. Health

2.1 Basic Checks

1RDDT does not have a ROIC to compare to the WACC, probably because it is not profitable.
1RDDT has more shares outstanding than it did 1 year ago.
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 2024 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 2024 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 51.60 indicates that 1RDDT is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1RDDT (51.60) is better 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 51.6
ROIC/WACCN/A
WACC8.83%
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 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

1RDDT has a Current Ratio of 12.63. This indicates that 1RDDT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of 1RDDT (12.63) is better than 100.00% of its industry peers.
1RDDT has a Quick Ratio of 12.63. This indicates that 1RDDT is financially healthy and has no problem in meeting its short term obligations.
1RDDT has a better Quick ratio (12.63) than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 12.63
Quick Ratio 12.63
1RDDT.MI Yearly Current Assets VS Current Liabilites1RDDT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

7

3. Growth

3.1 Past

1RDDT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -431.05%.
Looking at the last year, 1RDDT shows a very strong growth in Revenue. The Revenue has grown by 61.71%.
The Revenue has been growing by 38.93% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-431.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%233.08%
Revenue 1Y (TTM)61.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%71.25%

3.2 Future

The Earnings Per Share is expected to grow by 34.18% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 31.30% on average over the next years. This is a very strong growth
EPS Next Y114.19%
EPS Next 2Y51.04%
EPS Next 3Y34.18%
EPS Next 5YN/A
Revenue Next Year38.51%
Revenue Next 2Y33.66%
Revenue Next 3Y31.3%
Revenue Next 5YN/A

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.
1RDDT.MI Yearly Revenue VS Estimates1RDDT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
1RDDT.MI Yearly EPS VS Estimates1RDDT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0 2 -2 -4 -6

2

4. Valuation

4.1 Price/Earnings Ratio

1RDDT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 89.05, the valuation of 1RDDT can be described as expensive.
1RDDT's Price/Forward Earnings ratio is in line with the industry average.
1RDDT is valuated expensively when we compare the Price/Forward Earnings ratio to 20.49, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 89.05
1RDDT.MI Price Earnings VS Forward Price Earnings1RDDT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1RDDT indicates a slightly more expensive valuation: 1RDDT is more expensive than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 81.88
EV/EBITDA N/A
1RDDT.MI Per share data1RDDT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

1RDDT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1RDDT's earnings are expected to grow with 34.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.04%
EPS Next 3Y34.18%

0

5. Dividend

5.1 Amount

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

REDDIT INC-CL A

BIT:1RDDT (4/22/2025, 7:00:00 PM)

85.89

+2.9 (+3.49%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)05-01 2025-05-01/amc
Inst Owners83.45%
Inst Owner ChangeN/A
Ins Owners9.73%
Ins Owner ChangeN/A
Market Cap15.54B
Analysts75.71
Price Target135.46 (57.71%)
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)185.96%
Min EPS beat(2)40.18%
Max EPS beat(2)331.74%
EPS beat(4)4
Avg EPS beat(4)115.45%
Min EPS beat(4)7.85%
Max EPS beat(4)331.74%
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)6.32%
Min Revenue beat(2)3.47%
Max Revenue beat(2)9.17%
Revenue beat(4)4
Avg Revenue beat(4)8.32%
Min Revenue beat(4)3.47%
Max Revenue beat(4)11.92%
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)-34.17%
PT rev (3m)N/A
EPS NQ rev (1m)20.92%
EPS NQ rev (3m)135.83%
EPS NY rev (1m)-2.7%
EPS NY rev (3m)56.51%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)6.39%
Revenue NY rev (1m)-2%
Revenue NY rev (3m)2.43%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 89.05
P/S 13.59
P/FCF 81.88
P/OCF 79.57
P/B 8.29
P/tB 8.56
EV/EBITDA N/A
EPS(TTM)-6.8
EYN/A
EPS(NY)0.96
Fwd EY1.12%
FCF(TTM)1.05
FCFY1.22%
OCF(TTM)1.08
OCFY1.26%
SpS6.32
BVpS10.36
TBVpS10.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -20.73%
ROE -22.73%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 90.49%
FCFM 16.6%
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
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 3Y2.1%
GM growth 5YN/A
F-Score6
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 39.94%
Cap/Sales 0.48%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 12.63
Quick Ratio 12.63
Altman-Z 51.6
F-Score6
WACC8.83%
ROIC/WACCN/A
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)-431.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%233.08%
EPS Next Y114.19%
EPS Next 2Y51.04%
EPS Next 3Y34.18%
EPS Next 5YN/A
Revenue 1Y (TTM)61.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%71.25%
Revenue Next Year38.51%
Revenue Next 2Y33.66%
Revenue Next 3Y31.3%
Revenue Next 5YN/A
EBIT growth 1Y-299.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year199.23%
EBIT Next 3Y61.54%
EBIT Next 5YN/A
FCF growth 1Y354.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y395.64%
OCF growth 3YN/A
OCF growth 5YN/A