REDDIT INC-CL A (RDDT) Stock Fundamental Analysis
USA - NYSE:RDDT - US75734B1008 - Common Stock
191.73 USD
+3.95 (+2.1%)
RDDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
In the past year RDDT had a positive cash flow from operations.
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
RDDT has a Return On Assets of 12.14%. This is amongst the best in the industry. RDDT outperforms 82.86% of its industry peers.
RDDT has a better Return On Equity (13.37%) than 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 Profit Margin of 18.33%. This is amongst the best in the industry. RDDT outperforms 84.29% of its industry peers.
RDDT has a better Operating Margin (13.81%) than 78.57% 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
RDDT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
RDDT has an Altman-Z score of 80.93. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 80.93, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 80.93 |
ROIC/WACC0.78
WACC10.05%
2.3 Liquidity
A Current Ratio of 12.13 indicates that RDDT has no problem at all paying its short term obligations.
The Current ratio of RDDT (12.13) is better than 95.71% of its industry peers.
RDDT has a Quick Ratio of 12.13. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 12.13, RDDT belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 12.13 | ||
| Quick Ratio | 12.13 |
3. Growth
3.1 Past
RDDT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 153.82%, which is quite impressive.
RDDT shows a strong growth in Revenue. In the last year, the Revenue has grown by 69.71%.
RDDT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.93% yearly.
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
Based on estimates for the next years, RDDT will show a very strong growth in Earnings Per Share. The EPS will grow by 39.17% on average per year.
The Revenue is expected to grow by 35.99% on average over the next years. This is a very strong growth
EPS Next Y127.93%
EPS Next 2Y58.09%
EPS Next 3Y39.17%
EPS Next 5YN/A
Revenue Next Year66.16%
Revenue Next 2Y51.26%
Revenue Next 3Y43.57%
Revenue Next 5Y35.99%
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 110.19, the valuation of RDDT can be described as expensive.
RDDT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of RDDT to the average of the S&P500 Index (25.47), we can say RDDT is valued expensively.
With a Price/Forward Earnings ratio of 49.69, RDDT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as RDDT.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.42, RDDT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.19 | ||
| Fwd PE | 49.69 |
4.2 Price Multiples
RDDT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDDT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.41 | ||
| EV/EBITDA | 113.28 |
4.3 Compensation for Growth
RDDT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RDDT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RDDT's earnings are expected to grow with 39.17% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y58.09%
EPS Next 3Y39.17%
5. Dividend
5.1 Amount
RDDT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:RDDT (11/20/2025, 10:12:09 AM)
191.73
+3.95 (+2.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change4.83%
Ins Owners4.64%
Ins Owner Change-18.12%
Market Cap35.88B
Revenue(TTM)1.90B
Net Income(TTM)349.15M
Analysts78.82
Price Target238.64 (24.47%)
Short Float %13.44%
Short Ratio2.96
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)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)2.99%
PT rev (3m)18.03%
EPS NQ rev (1m)17.78%
EPS NQ rev (3m)24.43%
EPS NY rev (1m)14.59%
EPS NY rev (3m)70.46%
Revenue NQ rev (1m)4.83%
Revenue NQ rev (3m)8.29%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)14.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.19 | ||
| Fwd PE | 49.69 | ||
| P/S | 18.84 | ||
| P/FCF | 70.41 | ||
| P/OCF | 69.8 | ||
| P/B | 13.75 | ||
| P/tB | 14.07 | ||
| EV/EBITDA | 113.28 |
EPS(TTM)1.74
EY0.91%
EPS(NY)3.86
Fwd EY2.01%
FCF(TTM)2.72
FCFY1.42%
OCF(TTM)2.75
OCFY1.43%
SpS10.18
BVpS13.95
TBVpS13.63
PEG (NY)0.86
PEG (5Y)N/A
Graham Number23.37
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 | 80.93 |
F-Score8
WACC10.05%
ROIC/WACC0.78
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 Y127.93%
EPS Next 2Y58.09%
EPS Next 3Y39.17%
EPS Next 5YN/A
Revenue 1Y (TTM)69.71%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%67.91%
Revenue Next Year66.16%
Revenue Next 2Y51.26%
Revenue Next 3Y43.57%
Revenue Next 5Y35.99%
EBIT growth 1Y143.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year227.36%
EBIT Next 3Y66.82%
EBIT Next 5Y47.93%
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.
What is the valuation status of REDDIT INC-CL A (RDDT) stock?
ChartMill assigns a valuation rating of 4 / 10 to REDDIT INC-CL A (RDDT). This can be considered as Fairly Valued.
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 110.19 and the Price/Book (PB) ratio is 13.75.
Can you provide the financial health for RDDT stock?
The financial health rating of REDDIT INC-CL A (RDDT) is 8 / 10.