REDDIT INC-CL A (RDDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RDDT - US75734B1008 - Common Stock
244.56 USD
-9.39 (-3.7%)
241.85 USD
-2.71 (-1.11%)
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. With these ratings, RDDT could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year RDDT was profitable.
RDDT had a positive operating cash flow in the past year.
In the past 5 years RDDT always reported negative net income.
In the past 5 years RDDT reported 4 times negative operating cash flow.
1.2 Ratios
The Return On Assets of RDDT (12.14%) is better than 82.86% of its industry peers.
RDDT's Return On Equity of 13.37% is amongst the best of the industry. RDDT outperforms 85.71% of its industry peers.
RDDT's Return On Invested Capital of 7.85% is amongst the best of the industry. RDDT outperforms 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 13.37% | ||
| ROIC | 7.85% |
ROA(3y)-12.11%
ROA(5y)-11.08%
ROE(3y)-13.26%
ROE(5y)-12.17%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RDDT has a better Profit Margin (18.33%) than 85.71% of its industry peers.
RDDT has a better Operating Margin (13.81%) than 80.00% of its industry peers.
RDDT has a Gross Margin of 91.21%. This is amongst the best in the industry. RDDT outperforms 92.86% of its industry peers.
RDDT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.81% | ||
| PM (TTM) | 18.33% | ||
| GM | 91.21% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDDT is destroying value.
The number of shares outstanding for RDDT has been increased compared to 1 year ago.
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
An Altman-Z score of 106.22 indicates that RDDT is not in any danger for bankruptcy at the moment.
RDDT has a better Altman-Z score (106.22) than 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 106.22 |
ROIC/WACC0.89
WACC8.82%
2.3 Liquidity
A Current Ratio of 12.13 indicates that RDDT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 12.13, RDDT belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
A Quick Ratio of 12.13 indicates that RDDT has no problem at all paying its short term obligations.
RDDT's Quick ratio of 12.13 is amongst the best of the industry. RDDT outperforms 95.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12.13 | ||
| Quick Ratio | 12.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 153.82% over the past year.
Looking at the last year, RDDT shows a very strong growth in Revenue. The Revenue has grown by 69.71%.
Measured over the past years, RDDT shows a very strong growth in Revenue. The Revenue has been growing by 38.93% on average per year.
EPS 1Y (TTM)153.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
Revenue 1Y (TTM)69.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%67.91%
3.2 Future
RDDT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.69% yearly.
RDDT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 37.47% yearly.
EPS Next Y130.04%
EPS Next 2Y57.65%
EPS Next 3Y38.69%
EPS Next 5YN/A
Revenue Next Year67.38%
Revenue Next 2Y52.29%
Revenue Next 3Y44.23%
Revenue Next 5Y37.47%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 140.55 indicates a quite expensive valuation of RDDT.
Compared to the rest of the industry, the Price/Earnings ratio of RDDT is on the same level as its industry peers.
RDDT is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
RDDT is valuated quite expensively with a Price/Forward Earnings ratio of 65.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RDDT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RDDT to the average of the S&P500 Index (23.92), we can say RDDT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.55 | ||
| Fwd PE | 65.18 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.93 | ||
| EV/EBITDA | 153.43 |
4.3 Compensation for Growth
RDDT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RDDT has a very decent profitability rating, which may justify a higher PE ratio.
RDDT's earnings are expected to grow with 38.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y57.65%
EPS Next 3Y38.69%
5. Dividend
5.1 Amount
RDDT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
244.56
-9.39 (-3.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.05%
Inst Owner Change0.01%
Ins Owners0.6%
Ins Owner Change-21.72%
Market Cap46.34B
Revenue(TTM)1.90B
Net Income(TTM)349.15M
Analysts78.18
Price Target252.98 (3.44%)
Short Float %14.08%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)93.69%
Min EPS beat(2)53.96%
Max EPS beat(2)133.43%
EPS beat(4)4
Avg EPS beat(4)180.09%
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)10.03%
Min Revenue beat(2)5.08%
Max Revenue beat(2)14.99%
Revenue beat(4)4
Avg Revenue beat(4)6.87%
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)2.26%
PT rev (3m)9.18%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)13.52%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)23.26%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)4.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.55 | ||
| Fwd PE | 65.18 | ||
| P/S | 24.33 | ||
| P/FCF | 90.93 | ||
| P/OCF | 90.15 | ||
| P/B | 17.75 | ||
| P/tB | 18.17 | ||
| EV/EBITDA | 153.43 |
EPS(TTM)1.74
EY0.71%
EPS(NY)3.75
Fwd EY1.53%
FCF(TTM)2.69
FCFY1.1%
OCF(TTM)2.71
OCFY1.11%
SpS10.05
BVpS13.78
TBVpS13.46
PEG (NY)1.08
PEG (5Y)N/A
Graham Number23.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 13.37% | ||
| ROCE | 9.93% | ||
| ROIC | 7.85% | ||
| ROICexc | 49.21% | ||
| ROICexgc | 57.39% | ||
| OM | 13.81% | ||
| PM (TTM) | 18.33% | ||
| GM | 91.21% | ||
| FCFM | 26.76% |
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-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 27.47% | ||
| Cap/Sales | 0.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 184.26% | ||
| Profit Quality | 145.98% | ||
| Current Ratio | 12.13 | ||
| Quick Ratio | 12.13 | ||
| Altman-Z | 106.22 |
F-Score8
WACC8.82%
ROIC/WACC0.89
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)153.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
EPS Next Y130.04%
EPS Next 2Y57.65%
EPS Next 3Y38.69%
EPS Next 5YN/A
Revenue 1Y (TTM)69.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%67.91%
Revenue Next Year67.38%
Revenue Next 2Y52.29%
Revenue Next 3Y44.23%
Revenue Next 5Y37.47%
EBIT growth 1Y143.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year238.67%
EBIT Next 3Y70.86%
EBIT Next 5Y48.68%
FCF growth 1Y610.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y650.29%
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.
Can you provide the valuation status for REDDIT INC-CL A?
ChartMill assigns a valuation rating of 3 / 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 6 / 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 140.55 and the Price/Book (PB) ratio is 17.75.
What is the financial health of REDDIT INC-CL A (RDDT) stock?
The financial health rating of REDDIT INC-CL A (RDDT) is 8 / 10.