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

BIT:1RDDT - US75734B1008 - Common Stock

190 EUR
0 (0%)
Last: 8/29/2025, 7:00:00 PM
Fundamental Rating

5

Overall 1RDDT gets a fundamental rating of 5 out of 10. We evaluated 1RDDT against 23 industry peers in the Interactive Media & Services industry. 1RDDT has a great financial health rating, but its profitability evaluates not so good. 1RDDT shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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.
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

1RDDT has a Return On Assets (8.22%) which is in line with its industry peers.
The Return On Equity of 1RDDT (9.06%) is comparable to the rest of the industry.
1RDDT has a Return On Invested Capital of 4.07%. This is comparable to the rest of the industry: 1RDDT outperforms 52.17% of its industry peers.
Industry RankSector Rank
ROA 8.22%
ROE 9.06%
ROIC 4.07%
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

1RDDT's Profit Margin of 12.97% is in line compared to the rest of the industry. 1RDDT outperforms 52.17% of its industry peers.
The Operating Margin of 1RDDT (7.87%) is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 91.04%, 1RDDT is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
1RDDT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.87%
PM (TTM) 12.97%
GM 91.04%
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1RDDT is destroying value.
1RDDT has more shares outstanding than it did 1 year ago.
1RDDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

1RDDT has an Altman-Z score of 102.61. This indicates that 1RDDT is financially healthy and has little risk of bankruptcy at the moment.
1RDDT's Altman-Z score of 102.61 is amongst the best of the industry. 1RDDT outperforms 100.00% of its industry peers.
1RDDT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 102.61
ROIC/WACC0.43
WACC9.42%
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 12.00. This indicates that 1RDDT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of 1RDDT (12.00) is better than 100.00% of its industry peers.
A Quick Ratio of 12.00 indicates that 1RDDT has no problem at all paying its short term obligations.
1RDDT has a better Quick ratio (12.00) than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 12
Quick Ratio 12
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

8

3. Growth

3.1 Past

1RDDT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 132.25%, which is quite impressive.
The Revenue has grown by 69.97% in the past year. This is a very strong growth!
The Revenue has been growing by 38.93% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)132.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%850%
Revenue 1Y (TTM)69.97%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%77.69%

3.2 Future

1RDDT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.48% yearly.
Based on estimates for the next years, 1RDDT will show a very strong growth in Revenue. The Revenue will grow by 39.89% on average per year.
EPS Next Y123.91%
EPS Next 2Y54.73%
EPS Next 3Y36.48%
EPS Next 5YN/A
Revenue Next Year61.26%
Revenue Next 2Y46.45%
Revenue Next 3Y39.89%
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 -4 -6

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 202.13, 1RDDT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of 1RDDT indicates a slightly more expensive valuation: 1RDDT is more expensive than 69.57% of the companies listed in the same industry.
1RDDT is valuated expensively when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 72.62, 1RDDT can be considered very expensive at the moment.
65.22% of the companies in the same industry are cheaper than 1RDDT, based on the Price/Forward Earnings ratio.
1RDDT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.52.
Industry RankSector Rank
PE 202.13
Fwd PE 72.62
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

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1RDDT indicates a slightly more expensive valuation: 1RDDT is more expensive than 78.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1RDDT is valued a bit more expensive than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 104.36
EV/EBITDA 258.05
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as 1RDDT's earnings are expected to grow with 36.48% in the coming years.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y54.73%
EPS Next 3Y36.48%

0

5. Dividend

5.1 Amount

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

REDDIT INC-CL A

BIT:1RDDT (8/29/2025, 7:00:00 PM)

190

0 (0%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-27 2025-10-27
Inst Owners86.29%
Inst Owner ChangeN/A
Ins Owners6.88%
Ins Owner ChangeN/A
Market Cap35.56B
Analysts78.13
Price Target178.34 (-6.14%)
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)313.11%
Min EPS beat(2)133.43%
Max EPS beat(2)492.8%
EPS beat(4)4
Avg EPS beat(4)249.54%
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)9.47%
Min Revenue beat(2)3.96%
Max Revenue beat(2)14.99%
Revenue beat(4)4
Avg Revenue beat(4)7.9%
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)32.22%
PT rev (3m)21.81%
EPS NQ rev (1m)49.85%
EPS NQ rev (3m)49.11%
EPS NY rev (1m)45.96%
EPS NY rev (3m)49.06%
Revenue NQ rev (1m)14.71%
Revenue NQ rev (3m)15.83%
Revenue NY rev (1m)11.43%
Revenue NY rev (3m)12.14%
Valuation
Industry RankSector Rank
PE 202.13
Fwd PE 72.62
P/S 24.83
P/FCF 104.36
P/OCF 103.4
P/B 17.35
P/tB 17.82
EV/EBITDA 258.05
EPS(TTM)0.94
EY0.49%
EPS(NY)2.62
Fwd EY1.38%
FCF(TTM)1.82
FCFY0.96%
OCF(TTM)1.84
OCFY0.97%
SpS7.65
BVpS10.95
TBVpS10.66
PEG (NY)1.63
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 8.22%
ROE 9.06%
ROCE 5.42%
ROIC 4.07%
ROICexc 27.25%
ROICexgc 32.97%
OM 7.87%
PM (TTM) 12.97%
GM 91.04%
FCFM 23.79%
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-Score7
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 22.96%
Cap/Sales 0.22%
Interest Coverage 250
Cash Conversion 271.79%
Profit Quality 183.43%
Current Ratio 12
Quick Ratio 12
Altman-Z 102.61
F-Score7
WACC9.42%
ROIC/WACC0.43
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)132.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%850%
EPS Next Y123.91%
EPS Next 2Y54.73%
EPS Next 3Y36.48%
EPS Next 5YN/A
Revenue 1Y (TTM)69.97%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%77.69%
Revenue Next Year61.26%
Revenue Next 2Y46.45%
Revenue Next 3Y39.89%
Revenue Next 5YN/A
EBIT growth 1Y120.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year224.02%
EBIT Next 3Y65.57%
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