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

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

136  +12 (+9.68%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to 1RDDT. 1RDDT was compared to 22 industry peers in the Interactive Media & Services industry. While 1RDDT has a great health rating, there are worries on its profitability. 1RDDT is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year 1RDDT was profitable.
In the past year 1RDDT had a positive cash flow from operations.
In the past 5 years 1RDDT always reported negative net income.
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

Looking at the Return On Assets, with a value of 4.80%, 1RDDT is in line with its industry, outperforming 47.83% of the companies in the same industry.
1RDDT has a Return On Equity of 5.27%. This is comparable to the rest of the industry: 1RDDT outperforms 52.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.09%, 1RDDT is doing worse than 60.87% of the companies in the same industry.
Industry RankSector Rank
ROA 4.8%
ROE 5.27%
ROIC 1.09%
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

With a Profit Margin value of 8.07%, 1RDDT perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
1RDDT's Operating Margin of 2.25% is on the low side compared to the rest of the industry. 1RDDT is outperformed by 60.87% of its industry peers.
Looking at the Gross Margin, with a value of 90.82%, 1RDDT belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
In the last couple of years the Gross Margin of 1RDDT has grown nicely.
Industry RankSector Rank
OM 2.25%
PM (TTM) 8.07%
GM 90.82%
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

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8

2. Health

2.1 Basic Checks

1RDDT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1RDDT has been increased compared to 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 79.10 indicates that 1RDDT is not in any danger for bankruptcy at the moment.
1RDDT has a better Altman-Z score (79.10) 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 79.1
ROIC/WACC0.12
WACC8.87%
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 12.46. This indicates that 1RDDT is financially healthy and has no problem in meeting its short term obligations.
1RDDT has a better Current ratio (12.46) than 100.00% of its industry peers.
1RDDT has a Quick Ratio of 12.46. This indicates that 1RDDT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 12.46, 1RDDT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 12.46
Quick Ratio 12.46
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

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 116.80% over the past year.
1RDDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 64.12%.
The Revenue has been growing by 38.93% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)116.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%101.59%
Revenue 1Y (TTM)64.12%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%61.49%

3.2 Future

Based on estimates for the next years, 1RDDT will show a very strong growth in Earnings Per Share. The EPS will grow by 34.16% on average per year.
1RDDT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.67% yearly.
EPS Next Y116.38%
EPS Next 2Y51.68%
EPS Next 3Y34.16%
EPS Next 5YN/A
Revenue Next Year44.72%
Revenue Next 2Y36.32%
Revenue Next 3Y32.67%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
1RDDT.MI Yearly Revenue VS Estimates1RDDT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
1RDDT.MI Yearly EPS VS Estimates1RDDT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0 2 -2 -4 -6

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 261.54, the valuation of 1RDDT can be described as expensive.
1RDDT's Price/Earnings ratio is a bit more expensive when compared to the industry. 1RDDT is more expensive than 65.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1RDDT to the average of the S&P500 Index (26.82), we can say 1RDDT is valued expensively.
A Price/Forward Earnings ratio of 66.72 indicates a quite expensive valuation of 1RDDT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1RDDT indicates a slightly more expensive valuation: 1RDDT is more expensive than 60.87% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. 1RDDT is valued rather expensively when compared to this.
Industry RankSector Rank
PE 261.54
Fwd PE 66.72
1RDDT.MI Price Earnings VS Forward Price Earnings1RDDT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

1RDDT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1RDDT is more expensive than 78.26% of the companies in the same industry.
1RDDT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 91.37
EV/EBITDA 523.22
1RDDT.MI Per share data1RDDT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1RDDT does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as 1RDDT's earnings are expected to grow with 34.16% in the coming years.
PEG (NY)2.25
PEG (5Y)N/A
EPS Next 2Y51.68%
EPS Next 3Y34.16%

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0

5. Dividend

5.1 Amount

No dividends for 1RDDT!.
Industry RankSector Rank
Dividend Yield N/A

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REDDIT INC-CL A

BIT:1RDDT (7/31/2025, 7:00:00 PM)

136

+12 (+9.68%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)08-12 2025-08-12
Inst Owners84.82%
Inst Owner ChangeN/A
Ins Owners1.06%
Ins Owner ChangeN/A
Market Cap25.09B
Analysts77.42
Price Target134.88 (-0.82%)
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 Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)266.49%
Min EPS beat(2)40.18%
Max EPS beat(2)492.8%
EPS beat(4)4
Avg EPS beat(4)236.68%
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)3.71%
Min Revenue beat(2)3.47%
Max Revenue beat(2)3.96%
Revenue beat(4)4
Avg Revenue beat(4)6.33%
Min Revenue beat(4)3.47%
Max Revenue beat(4)9.17%
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)1.44%
PT rev (3m)-0.42%
EPS NQ rev (1m)1.07%
EPS NQ rev (3m)43.54%
EPS NY rev (1m)0.77%
EPS NY rev (3m)15.46%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)5.97%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)4.48%
Valuation
Industry RankSector Rank
PE 261.54
Fwd PE 66.72
P/S 19.74
P/FCF 91.37
P/OCF 90.11
P/B 12.91
P/tB 13.3
EV/EBITDA 523.22
EPS(TTM)0.52
EY0.38%
EPS(NY)2.04
Fwd EY1.5%
FCF(TTM)1.49
FCFY1.09%
OCF(TTM)1.51
OCFY1.11%
SpS6.89
BVpS10.54
TBVpS10.23
PEG (NY)2.25
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.8%
ROE 5.27%
ROCE 1.45%
ROIC 1.09%
ROICexc 8.17%
ROICexgc 10.45%
OM 2.25%
PM (TTM) 8.07%
GM 90.82%
FCFM 21.61%
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-Score8
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 27.59%
Cap/Sales 0.3%
Interest Coverage 250
Cash Conversion 655.44%
Profit Quality 267.82%
Current Ratio 12.46
Quick Ratio 12.46
Altman-Z 79.1
F-Score8
WACC8.87%
ROIC/WACC0.12
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)116.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%101.59%
EPS Next Y116.38%
EPS Next 2Y51.68%
EPS Next 3Y34.16%
EPS Next 5YN/A
Revenue 1Y (TTM)64.12%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%61.49%
Revenue Next Year44.72%
Revenue Next 2Y36.32%
Revenue Next 3Y32.67%
Revenue Next 5YN/A
EBIT growth 1Y104.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year205.43%
EBIT Next 3Y60.52%
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