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REDDIT INC-CL A (RDDT) Stock Fundamental Analysis

USA - NYSE:RDDT - US75734B1008 - Common Stock

212.15 USD
-0.82 (-0.39%)
Last: 10/29/2025, 12:53:55 PM
Fundamental Rating

6

Taking everything into account, RDDT scores 6 out of 10 in our fundamental rating. RDDT was compared to 70 industry peers in the Interactive Media & Services industry. While RDDT has a great health rating, its profitability is only average at the moment. RDDT shows excellent growth, but is valued quite expensive already. These ratings would make RDDT suitable for growth investing!


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

RDDT had positive earnings in the past year.
RDDT had a positive operating cash flow in the past year.
In the past 5 years RDDT always reported negative net income.
RDDT had negative operating cash flow in 4 of the past 5 years.
RDDT Yearly Net Income VS EBIT VS OCF VS FCFRDDT 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 8.22%, RDDT belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
With a decent Return On Equity value of 9.06%, RDDT is doing good in the industry, outperforming 78.57% of the companies in the same industry.
RDDT has a better Return On Invested Capital (4.29%) than 71.43% of its industry peers.
Industry RankSector Rank
ROA 8.22%
ROE 9.06%
ROIC 4.29%
ROA(3y)-12.11%
ROA(5y)-11.08%
ROE(3y)-13.26%
ROE(5y)-12.17%
ROIC(3y)N/A
ROIC(5y)N/A
RDDT Yearly ROA, ROE, ROICRDDT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 -5 -10 -15 -20

1.3 Margins

RDDT's Profit Margin of 12.97% is fine compared to the rest of the industry. RDDT outperforms 78.57% of its industry peers.
RDDT has a better Operating Margin (7.87%) than 71.43% of its industry peers.
Looking at the Gross Margin, with a value of 91.04%, RDDT belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Gross Margin of RDDT has grown nicely.
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
RDDT Yearly Profit, Operating, Gross MarginsRDDT 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

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.
RDDT Yearly Shares OutstandingRDDT Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 50M 100M 150M
RDDT Yearly Total Debt VS Total AssetsRDDT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

RDDT has an Altman-Z score of 98.80. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
RDDT's Altman-Z score of 98.80 is amongst the best of the industry. RDDT outperforms 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 98.8
ROIC/WACC0.42
WACC10.21%
RDDT Yearly LT Debt VS Equity VS FCFRDDT 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

RDDT has a Current Ratio of 12.00. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
RDDT has a better Current ratio (12.00) than 95.71% of its industry peers.
RDDT has a Quick Ratio of 12.00. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
RDDT has a better Quick ratio (12.00) than 95.71% of its industry peers.
Industry RankSector Rank
Current Ratio 12
Quick Ratio 12
RDDT Yearly Current Assets VS Current LiabilitesRDDT 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

The Earnings Per Share has grown by an impressive 132.25% over the past year.
Looking at the last year, RDDT shows a very strong growth in Revenue. The Revenue has grown by 69.97%.
RDDT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.93% yearly.
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

RDDT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.39% yearly.
Based on estimates for the next years, RDDT will show a very strong growth in Revenue. The Revenue will grow by 41.10% on average per year.
EPS Next Y124.65%
EPS Next 2Y56.14%
EPS Next 3Y37.39%
EPS Next 5YN/A
Revenue Next Year62.48%
Revenue Next 2Y47.91%
Revenue Next 3Y41.1%
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.
RDDT Yearly Revenue VS EstimatesRDDT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
RDDT Yearly EPS VS EstimatesRDDT Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0 2 -2 4 -4 -6

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 192.86, the valuation of RDDT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RDDT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RDDT to the average of the S&P500 Index (27.00), we can say RDDT is valued expensively.
Based on the Price/Forward Earnings ratio of 62.65, the valuation of RDDT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RDDT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, RDDT is valued quite expensively.
Industry RankSector Rank
PE 192.86
Fwd PE 62.65
RDDT Price Earnings VS Forward Price EarningsRDDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

RDDT's Enterprise Value to EBITDA is on the same level as the industry average.
RDDT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 100.05
EV/EBITDA 247.5
RDDT Per share dataRDDT 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 RDDT's earnings are expected to grow with 37.39% in the coming years.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y56.14%
EPS Next 3Y37.39%

0

5. Dividend

5.1 Amount

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

REDDIT INC-CL A

NYSE:RDDT (10/29/2025, 12:53:55 PM)

212.15

-0.82 (-0.39%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-30 2025-10-30/amc
Inst Owners88.19%
Inst Owner Change0.9%
Ins Owners4.64%
Ins Owner Change-17.42%
Market Cap39.71B
Revenue(TTM)1.67B
Net Income(TTM)216.34M
Analysts78.82
Price Target231.72 (9.22%)
Short Float %14.88%
Short Ratio3.33
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)245.43%
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)9.7%
PT rev (3m)45.93%
EPS NQ rev (1m)1.79%
EPS NQ rev (3m)52.78%
EPS NY rev (1m)1.12%
EPS NY rev (3m)50.42%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)12.51%
Valuation
Industry RankSector Rank
PE 192.86
Fwd PE 62.65
P/S 23.8
P/FCF 100.05
P/OCF 99.13
P/B 16.63
P/tB 17.08
EV/EBITDA 247.5
EPS(TTM)1.1
EY0.52%
EPS(NY)3.39
Fwd EY1.6%
FCF(TTM)2.12
FCFY1%
OCF(TTM)2.14
OCFY1.01%
SpS8.91
BVpS12.75
TBVpS12.42
PEG (NY)1.55
PEG (5Y)N/A
Graham Number17.77
Profitability
Industry RankSector Rank
ROA 8.22%
ROE 9.06%
ROCE 5.42%
ROIC 4.29%
ROICexc 28.71%
ROICexgc 34.73%
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
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-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 98.8
F-Score7
WACC10.21%
ROIC/WACC0.42
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 Y124.65%
EPS Next 2Y56.14%
EPS Next 3Y37.39%
EPS Next 5YN/A
Revenue 1Y (TTM)69.97%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%77.69%
Revenue Next Year62.48%
Revenue Next 2Y47.91%
Revenue Next 3Y41.1%
Revenue Next 5YN/A
EBIT growth 1Y120.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year227.36%
EBIT Next 3Y66.82%
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

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 2 / 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 5 / 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 192.86 and the Price/Book (PB) ratio is 16.63.


Can you provide the financial health for RDDT stock?

The financial health rating of REDDIT INC-CL A (RDDT) is 8 / 10.