REDDIT INC-CL A (RDDT) Fundamental Analysis & Valuation

NYSE:RDDT • US75734B1008

Current stock price

163.8 USD
+1.35 (+0.83%)
At close:
163.7 USD
-0.1 (-0.06%)
After Hours:

This RDDT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. RDDT Profitability Analysis

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 4 of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: RDDT reported negative operating cash flow in multiple 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 2025 0 200M -200M 400M -400M 600M

1.2 Ratios

  • The Return On Assets of RDDT (16.35%) is better than 86.96% of its industry peers.
  • RDDT has a Return On Equity of 18.09%. This is amongst the best in the industry. RDDT outperforms 82.61% of its industry peers.
  • With an excellent Return On Invested Capital value of 11.76%, RDDT belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
Industry RankSector Rank
ROA 16.35%
ROE 18.09%
ROIC 11.76%
ROA(3y)-3.35%
ROA(5y)-5.55%
ROE(3y)-3.65%
ROE(5y)-5.97%
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 2025 0 10 -10 -20

1.3 Margins

  • RDDT's Profit Margin of 24.05% is amongst the best of the industry. RDDT outperforms 88.41% of its industry peers.
  • RDDT's Operating Margin of 20.07% is amongst the best of the industry. RDDT outperforms 85.51% of its industry peers.
  • RDDT has a Gross Margin of 91.18%. This is amongst the best in the industry. RDDT outperforms 91.30% of its industry peers.
  • RDDT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 20.07%
PM (TTM) 24.05%
GM 91.18%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.66%
GM growth 5Y3.72%
RDDT Yearly Profit, Operating, Gross MarginsRDDT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60 80

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9

2. RDDT Health Analysis

2.1 Basic Checks

  • RDDT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, RDDT has more shares outstanding
  • RDDT has more shares outstanding than it did 5 years 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 2025 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 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 62.44 indicates that RDDT is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of RDDT (62.44) is better than 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 62.44
ROIC/WACC1.32
WACC8.9%
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 2025 0 1B 2B

2.3 Liquidity

  • RDDT has a Current Ratio of 11.56. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
  • RDDT's Current ratio of 11.56 is amongst the best of the industry. RDDT outperforms 97.10% of its industry peers.
  • RDDT has a Quick Ratio of 11.56. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 11.56, RDDT belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 11.56
Quick Ratio 11.56
RDDT Yearly Current Assets VS Current LiabilitesRDDT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. RDDT Growth Analysis

3.1 Past

  • RDDT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 133.89%, which is quite impressive.
  • The Revenue has grown by 69.40% in the past year. This is a very strong growth!
  • RDDT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 57.27% yearly.
EPS 1Y (TTM)133.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%244.44%
Revenue 1Y (TTM)69.4%
Revenue growth 3Y48.93%
Revenue growth 5Y57.27%
Sales Q2Q%69.65%

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 43.67% on average per year.
  • The Revenue is expected to grow by 29.87% on average over the next years. This is a very strong growth
EPS Next Y60.52%
EPS Next 2Y49.44%
EPS Next 3Y43.67%
EPS Next 5YN/A
Revenue Next Year46.2%
Revenue Next 2Y38.3%
Revenue Next 3Y34.38%
Revenue Next 5Y29.87%

3.3 Evolution

  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
RDDT Yearly Revenue VS EstimatesRDDT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2B 4B 6B 8B 10B
RDDT Yearly EPS VS EstimatesRDDT Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 2028 0 5 -5

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4

4. RDDT Valuation Analysis

4.1 Price/Earnings Ratio

  • RDDT is valuated quite expensively with a Price/Earnings ratio of 62.52.
  • RDDT's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.87, RDDT is valued quite expensively.
  • A Price/Forward Earnings ratio of 38.95 indicates a quite expensive valuation of RDDT.
  • RDDT's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 38.51. RDDT is around the same levels.
Industry RankSector Rank
PE 62.52
Fwd PE 38.95
RDDT Price Earnings VS Forward Price EarningsRDDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDDT indicates a somewhat cheap valuation: RDDT is cheaper than 65.22% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 45.74
EV/EBITDA 59.6
RDDT Per share dataRDDT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • RDDT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • RDDT has a very decent profitability rating, which may justify a higher PE ratio.
  • RDDT's earnings are expected to grow with 43.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y49.44%
EPS Next 3Y43.67%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RDDT Dividend Analysis

5.1 Amount

  • No dividends for RDDT!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

RDDT Fundamentals: All Metrics, Ratios and Statistics

REDDIT INC-CL A

NYSE:RDDT (4/17/2026, 8:04:00 PM)

After market: 163.7 -0.1 (-0.06%)

163.8

+1.35 (+0.83%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-05
Earnings (Next)04-30
Inst Owners98.16%
Inst Owner Change0.04%
Ins Owners0.54%
Ins Owner Change-25.1%
Market Cap31.29B
Revenue(TTM)2.20B
Net Income(TTM)529.72M
Analysts77.71
Price Target236.35 (44.29%)
Short Float %12.61%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)41.57%
Min EPS beat(2)29.18%
Max EPS beat(2)53.96%
EPS beat(4)4
Avg EPS beat(4)177.34%
Min EPS beat(4)29.18%
Max EPS beat(4)492.8%
EPS beat(8)8
Avg EPS beat(8)144.34%
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)5.99%
Min Revenue beat(2)5.08%
Max Revenue beat(2)6.9%
Revenue beat(4)4
Avg Revenue beat(4)7.73%
Min Revenue beat(4)3.96%
Max Revenue beat(4)14.99%
Revenue beat(8)8
Avg Revenue beat(8)8.03%
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)-2.06%
PT rev (3m)-6.73%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)20.58%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)12.08%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)6.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.3%
Valuation
Industry RankSector Rank
PE 62.52
Fwd PE 38.95
P/S 14.21
P/FCF 45.74
P/OCF 45.29
P/B 10.68
P/tB 10.9
EV/EBITDA 59.6
EPS(TTM)2.62
EY1.6%
EPS(NY)4.21
Fwd EY2.57%
FCF(TTM)3.58
FCFY2.19%
OCF(TTM)3.62
OCFY2.21%
SpS11.53
BVpS15.33
TBVpS15.03
PEG (NY)1.03
PEG (5Y)N/A
Graham Number30.0637 (-81.65%)
Profitability
Industry RankSector Rank
ROA 16.35%
ROE 18.09%
ROCE 14.89%
ROIC 11.76%
ROICexc 71.1%
ROICexgc 80.57%
OM 20.07%
PM (TTM) 24.05%
GM 91.18%
FCFM 31.06%
ROA(3y)-3.35%
ROA(5y)-5.55%
ROE(3y)-3.65%
ROE(5y)-5.97%
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 3Y2.66%
GM growth 5Y3.72%
F-Score7
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 42.05%
Cap/Sales 0.3%
Interest Coverage 250
Cash Conversion 150.87%
Profit Quality 129.16%
Current Ratio 11.56
Quick Ratio 11.56
Altman-Z 62.44
F-Score7
WACC8.9%
ROIC/WACC1.32
Cap/Depr(3y)50.99%
Cap/Depr(5y)62.52%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)133.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%244.44%
EPS Next Y60.52%
EPS Next 2Y49.44%
EPS Next 3Y43.67%
EPS Next 5YN/A
Revenue 1Y (TTM)69.4%
Revenue growth 3Y48.93%
Revenue growth 5Y57.27%
Sales Q2Q%69.65%
Revenue Next Year46.2%
Revenue Next 2Y38.3%
Revenue Next 3Y34.38%
Revenue Next 5Y29.87%
EBIT growth 1Y178.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year247.94%
EBIT Next 3Y86.01%
EBIT Next 5Y59.39%
FCF growth 1Y217.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y211.11%
OCF growth 3YN/A
OCF growth 5YN/A

REDDIT INC-CL A / RDDT Fundamental Analysis FAQ

What is the ChartMill fundamental rating of REDDIT INC-CL A (RDDT) stock?

ChartMill assigns a fundamental rating of 7 / 10 to RDDT.


Can you provide the valuation status for REDDIT INC-CL A?

ChartMill assigns a valuation rating of 4 / 10 to REDDIT INC-CL A (RDDT). This can be considered as Fairly Valued.


Can you provide the profitability details for REDDIT INC-CL A?

REDDIT INC-CL A (RDDT) has a profitability rating of 6 / 10.


What is the financial health of REDDIT INC-CL A (RDDT) stock?

The financial health rating of REDDIT INC-CL A (RDDT) is 9 / 10.