REDDIT INC-CL A (RDDT) Stock Fundamental Analysis
USA - NYSE:RDDT - US75734B1008 - Common Stock
212.15 USD
-0.82 (-0.39%)
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!
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.
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 Rank | Sector 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
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 Rank | Sector 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 98.8 |
ROIC/WACC0.42
WACC10.21%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12 | ||
| Quick Ratio | 12 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 192.86 | ||
| Fwd PE | 62.65 |
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 | 100.05 | ||
| EV/EBITDA | 247.5 |
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%
5. Dividend
5.1 Amount
RDDT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:RDDT (10/29/2025, 12:53:55 PM)
212.15
-0.82 (-0.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.