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REDDIT INC-CL A (RDDT) Stock Fundamental Analysis

USA - NYSE:RDDT - US75734B1008 - Common Stock

254.34 USD
-12.32 (-4.62%)
Last: 9/17/2025, 10:51:05 AM
Fundamental Rating

6

RDDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the Interactive Media & Services industry. RDDT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RDDT shows excellent growth, but is valued quite expensive already. With these ratings, RDDT could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

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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.
In the past 5 years RDDT reported 4 times negative operating cash flow.
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

RDDT has a Return On Assets of 8.22%. This is amongst the best in the industry. RDDT outperforms 84.06% of its industry peers.
Looking at the Return On Equity, with a value of 9.06%, RDDT is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.29%, RDDT is doing good in the industry, outperforming 72.46% of the companies in the same industry.
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

Looking at the Profit Margin, with a value of 12.97%, RDDT is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
RDDT has a Operating Margin of 7.87%. This is in the better half of the industry: RDDT outperforms 71.01% of its industry peers.
RDDT has a Gross Margin of 91.04%. This is amongst the best in the industry. RDDT outperforms 92.75% of its industry peers.
RDDT'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
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

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 123.39. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 123.39, RDDT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 123.39
ROIC/WACC0.46
WACC9.32%
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

A Current Ratio of 12.00 indicates that RDDT has no problem at all paying its short term obligations.
RDDT has a better Current ratio (12.00) than 95.65% 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's Quick ratio of 12.00 is amongst the best of the industry. RDDT outperforms 95.65% 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

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8

3. Growth

3.1 Past

RDDT 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

Based on estimates for the next years, RDDT will show a very strong growth in Earnings Per Share. The EPS will grow by 36.48% on average per year.
Based on estimates for the next years, RDDT will show a very strong growth in Revenue. The Revenue will grow by 40.15% on average per year.
EPS Next Y123.91%
EPS Next 2Y54.73%
EPS Next 3Y36.48%
EPS Next 5YN/A
Revenue Next Year61.33%
Revenue Next 2Y46.63%
Revenue Next 3Y40.15%
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

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 231.22, RDDT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as RDDT.
RDDT is valuated expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 83.48, which means the current valuation is very expensive for RDDT.
RDDT's Price/Forward Earnings ratio is in line with the industry average.
RDDT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.71.
Industry RankSector Rank
PE 231.22
Fwd PE 83.48
RDDT Price Earnings VS Forward Price EarningsRDDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

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 ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 119.95
EV/EBITDA 315.69
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RDDT does not grow enough to justify the current Price/Earnings ratio.
RDDT's earnings are expected to grow with 36.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)N/A
EPS Next 2Y54.73%
EPS Next 3Y36.48%

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0

5. Dividend

5.1 Amount

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

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REDDIT INC-CL A

NYSE:RDDT (9/17/2025, 10:51:05 AM)

254.34

-12.32 (-4.62%)

Chartmill FA Rating
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 Change6.03%
Ins Owners6.88%
Ins Owner Change-24.81%
Market Cap47.60B
Analysts78.79
Price Target211.23 (-16.95%)
Short Float %15.25%
Short Ratio2.97
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)4.47%
PT rev (3m)31.75%
EPS NQ rev (1m)4.23%
EPS NQ rev (3m)53.54%
EPS NY rev (1m)45.96%
EPS NY rev (3m)49.06%
Revenue NQ rev (1m)2.58%
Revenue NQ rev (3m)15.5%
Revenue NY rev (1m)11.48%
Revenue NY rev (3m)11.96%
Valuation
Industry RankSector Rank
PE 231.22
Fwd PE 83.48
P/S 28.54
P/FCF 119.95
P/OCF 118.85
P/B 19.94
P/tB 20.48
EV/EBITDA 315.69
EPS(TTM)1.1
EY0.43%
EPS(NY)3.05
Fwd EY1.2%
FCF(TTM)2.12
FCFY0.83%
OCF(TTM)2.14
OCFY0.84%
SpS8.91
BVpS12.75
TBVpS12.42
PEG (NY)1.87
PEG (5Y)N/A
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
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 123.39
F-Score7
WACC9.32%
ROIC/WACC0.46
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 Year61.33%
Revenue Next 2Y46.63%
Revenue Next 3Y40.15%
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