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REDDIT INC-CL A (RDDT) Stock Fundamental Analysis

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

146.38  +0.79 (+0.54%)

After market: 146.25 -0.13 (-0.09%)

Fundamental Rating

5

Overall RDDT gets a fundamental rating of 5 out of 10. We evaluated RDDT against 70 industry peers in the Interactive Media & Services industry. RDDT has an excellent financial health rating, but there are some minor concerns on its profitability. RDDT shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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4

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.
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

RDDT has a better Return On Assets (4.80%) than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.27%, RDDT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
RDDT's Return On Invested Capital of 1.14% is in line compared to the rest of the industry. RDDT outperforms 58.57% 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's Profit Margin of 8.07% is fine compared to the rest of the industry. RDDT outperforms 78.57% of its industry peers.
RDDT's Operating Margin of 2.25% is in line compared to the rest of the industry. RDDT outperforms 55.71% of its industry peers.
RDDT's Gross Margin of 90.82% is amongst the best of the industry. RDDT outperforms 90.00% of its industry peers.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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 74.32. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
RDDT's Altman-Z score of 74.32 is amongst the best of the industry. RDDT outperforms 98.57% 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 74.32
ROIC/WACC0.12
WACC9.31%
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 95.71% 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 has a better Quick ratio (12.46) than 95.71% 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

RDDT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.80%, which is quite impressive.
Looking at the last year, RDDT shows a very strong growth in Revenue. The Revenue has grown by 64.12%.
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)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

Based on estimates for the next years, RDDT will show a very strong growth in Earnings Per Share. The EPS will grow by 34.16% 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 32.56% on average per year.
EPS Next Y116.38%
EPS Next 2Y51.68%
EPS Next 3Y34.16%
EPS Next 5YN/A
Revenue Next Year44.41%
Revenue Next 2Y36.12%
Revenue Next 3Y32.56%
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

RDDT is valuated quite expensively with a Price/Earnings ratio of 248.10.
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 (27.52), we can say RDDT is valued expensively.
RDDT is valuated quite expensively with a Price/Forward Earnings ratio of 62.98.
RDDT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RDDT to the average of the S&P500 Index (35.58), we can say RDDT is valued expensively.
Industry RankSector Rank
PE 248.1
Fwd PE 62.98
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 ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RDDT.
Industry RankSector Rank
P/FCF 86.24
EV/EBITDA 487.02
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 34.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)N/A
EPS Next 2Y51.68%
EPS Next 3Y34.16%

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0

5. Dividend

5.1 Amount

No dividends for RDDT!.
Industry RankSector Rank
Dividend Yield N/A

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REDDIT INC-CL A

NYSE:RDDT (7/14/2025, 7:02:04 PM)

After market: 146.25 -0.13 (-0.09%)

146.38

+0.79 (+0.54%)

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 Owners84.82%
Inst Owner Change0.04%
Ins Owners1.06%
Ins Owner Change-53.36%
Market Cap27.01B
Analysts77.42
Price Target156.41 (6.85%)
Short Float %16.27%
Short Ratio2.21
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)-2.44%
PT rev (3m)-20.43%
EPS NQ rev (1m)1.07%
EPS NQ rev (3m)43.54%
EPS NY rev (1m)2.12%
EPS NY rev (3m)9.61%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)5.66%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)3.17%
Valuation
Industry RankSector Rank
PE 248.1
Fwd PE 62.98
P/S 18.63
P/FCF 86.24
P/OCF 85.05
P/B 12.18
P/tB 12.55
EV/EBITDA 487.02
EPS(TTM)0.59
EY0.4%
EPS(NY)2.32
Fwd EY1.59%
FCF(TTM)1.7
FCFY1.16%
OCF(TTM)1.72
OCFY1.18%
SpS7.86
BVpS12.02
TBVpS11.66
PEG (NY)2.13
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 74.32
F-Score8
WACC9.31%
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 Y116.38%
EPS Next 2Y51.68%
EPS Next 3Y34.16%
EPS Next 5YN/A
Revenue 1Y (TTM)64.12%
Revenue growth 3Y38.93%
Revenue growth 5YN/A
Sales Q2Q%61.49%
Revenue Next Year44.41%
Revenue Next 2Y36.12%
Revenue Next 3Y32.56%
Revenue Next 5YN/A
EBIT growth 1Y104.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year205.43%
EBIT Next 3Y60.52%
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