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REDDIT INC-CL A (RDDT) Stock Fundamental Analysis

NYSE:RDDT - New York Stock Exchange, Inc. - US75734B1008 - Common Stock - Currency: USD

98.32  +2.47 (+2.58%)

Premarket: 98 -0.32 (-0.33%)

Fundamental Rating

5

Taking everything into account, RDDT scores 5 out of 10 in our fundamental rating. RDDT was compared to 71 industry peers in the Interactive Media & Services industry. While RDDT has a great health rating, its profitability is only average at the moment. RDDT is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

RDDT had positive earnings in the past year.
In the past year RDDT had a positive cash flow from operations.
RDDT had negative earnings in each of the past 5 years.
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

The Return On Assets of RDDT (4.80%) is better than 74.65% of its industry peers.
RDDT has a better Return On Equity (5.27%) than 70.42% of its industry peers.
RDDT has a Return On Invested Capital of 1.14%. This is comparable to the rest of the industry: RDDT outperforms 59.15% of its industry peers.
Industry RankSector Rank
ROA 4.8%
ROE 5.27%
ROIC 1.14%
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 has a better Profit Margin (8.07%) than 78.87% of its industry peers.
Looking at the Operating Margin, with a value of 2.25%, RDDT is in line with its industry, outperforming 54.93% of the companies in the same industry.
Looking at the Gross Margin, with a value of 90.82%, RDDT belongs to the top of the industry, outperforming 90.14% 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 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
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

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.
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.
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 50.45. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
RDDT's Altman-Z score of 50.45 is amongst the best of the industry. RDDT outperforms 98.59% 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 50.45
ROIC/WACC0.12
WACC9.22%
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 12.46. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 12.46, RDDT belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
A Quick Ratio of 12.46 indicates that RDDT has no problem at all paying its short term obligations.
RDDT's Quick ratio of 12.46 is amongst the best of the industry. RDDT outperforms 97.18% of its industry peers.
Industry RankSector Rank
Current Ratio 12.46
Quick Ratio 12.46
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

The Earnings Per Share has grown by an impressive 116.80% over the past year.
The Revenue has grown by 64.12% 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)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

The Earnings Per Share is expected to grow by 34.76% on average over the next years. This is a very strong growth
RDDT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 33.02% yearly.
EPS Next Y116.04%
EPS Next 2Y51.77%
EPS Next 3Y34.76%
EPS Next 5YN/A
Revenue Next Year43.8%
Revenue Next 2Y36.12%
Revenue Next 3Y33.02%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 -6

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 166.64, which means the current valuation is very expensive for RDDT.
The rest of the industry has a similar Price/Earnings ratio as RDDT.
RDDT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 41.92 indicates a quite expensive valuation of RDDT.
RDDT's Price/Forward Earnings is on the same level as the industry average.
RDDT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.85.
Industry RankSector Rank
PE 166.64
Fwd PE 41.92
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RDDT is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as RDDT.
Industry RankSector Rank
P/FCF 57.85
EV/EBITDA 306.5
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

RDDT's 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 34.76% in the coming years.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y51.77%
EPS Next 3Y34.76%

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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 (5/22/2025, 8:04:01 PM)

Premarket: 98 -0.32 (-0.33%)

98.32

+2.47 (+2.58%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)08-04 2025-08-04
Inst Owners83.45%
Inst Owner Change3.75%
Ins Owners9.73%
Ins Owner Change-51.35%
Market Cap18.12B
Analysts76.67
Price Target166.27 (69.11%)
Short Float %17.84%
Short Ratio2.16
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)-15.41%
PT rev (3m)-9.52%
EPS NQ rev (1m)35.19%
EPS NQ rev (3m)144.3%
EPS NY rev (1m)13.06%
EPS NY rev (3m)28.95%
Revenue NQ rev (1m)5.26%
Revenue NQ rev (3m)5.82%
Revenue NY rev (1m)2.74%
Revenue NY rev (3m)5.15%
Valuation
Industry RankSector Rank
PE 166.64
Fwd PE 41.92
P/S 12.5
P/FCF 57.85
P/OCF 57.05
P/B 8.17
P/tB 8.42
EV/EBITDA 306.5
EPS(TTM)0.59
EY0.6%
EPS(NY)2.35
Fwd EY2.39%
FCF(TTM)1.7
FCFY1.73%
OCF(TTM)1.72
OCFY1.75%
SpS7.87
BVpS12.03
TBVpS11.68
PEG (NY)1.44
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.8%
ROE 5.27%
ROCE 1.45%
ROIC 1.14%
ROICexc 8.61%
ROICexgc 11.01%
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 50.45
F-Score8
WACC9.22%
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 Y116.04%
EPS Next 2Y51.77%
EPS Next 3Y34.76%
EPS Next 5YN/A
Revenue 1Y (TTM)64.12%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%61.49%
Revenue Next Year43.8%
Revenue Next 2Y36.12%
Revenue Next 3Y33.02%
Revenue Next 5YN/A
EBIT growth 1Y104.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year199.23%
EBIT Next 3Y61.54%
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