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REDDIT INC-CL A (RDDT) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:RDDT - US75734B1008 - Common Stock

183.48 USD
+1.6 (+0.88%)
Last: 11/21/2025, 8:04:00 PM
185.755 USD
+2.28 (+1.24%)
After Hours: 11/21/2025, 8:04:00 PM
Fundamental Rating

6

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!.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year RDDT was profitable.
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.
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 (12.14%) than 82.86% of its industry peers.
RDDT has a Return On Equity of 13.37%. This is amongst the best in the industry. RDDT outperforms 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.85%, RDDT belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
Industry RankSector 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
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 18.33% is amongst the best of the industry. RDDT outperforms 84.29% of its industry peers.
The Operating Margin of RDDT (13.81%) is better than 80.00% of its industry peers.
Looking at the Gross Margin, with a value of 91.21%, 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 RankSector 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
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

RDDT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RDDT has more shares outstanding than it did 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 79.12. This indicates that RDDT is financially healthy and has little risk of bankruptcy at the moment.
RDDT has a better Altman-Z score (79.12) 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 79.12
ROIC/WACC0.79
WACC9.96%
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 12.13. This indicates that RDDT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 12.13, RDDT belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
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 RankSector Rank
Current Ratio 12.13
Quick Ratio 12.13
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 153.82% over the past year.
Looking at the last year, RDDT shows a very strong growth in Revenue. The Revenue has grown by 69.71%.
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)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.
Based on estimates for the next years, RDDT will show a very strong growth in Revenue. The Revenue will grow by 35.99% on average per year.
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.
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 2B 4B 6B 8B
RDDT Yearly EPS VS EstimatesRDDT Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0 2 -2 4 -4 -6

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 105.45, the valuation of RDDT can be described as expensive.
RDDT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RDDT to the average of the S&P500 Index (25.45), we can say RDDT is valued expensively.
With a Price/Forward Earnings ratio of 47.56, RDDT can be considered very expensive at the moment.
RDDT's Price/Forward Earnings ratio is in line with the industry average.
RDDT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 105.45
Fwd PE 47.56
RDDT Price Earnings VS Forward Price EarningsRDDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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 ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 67.38
EV/EBITDA 110.4
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 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)0.82
PEG (5Y)N/A
EPS Next 2Y58.09%
EPS Next 3Y39.17%

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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 (11/21/2025, 8:04:00 PM)

After market: 185.755 +2.28 (+1.24%)

183.48

+1.6 (+0.88%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)01-13 2026-01-13/amc
Inst Owners88.19%
Inst Owner Change4.76%
Ins Owners4.64%
Ins Owner Change-11.86%
Market Cap34.34B
Revenue(TTM)1.90B
Net Income(TTM)349.15M
Analysts78.82
Price Target248.93 (35.67%)
Short Float %13.44%
Short Ratio2.96
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)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)7.43%
PT rev (3m)19.53%
EPS NQ rev (1m)17.8%
EPS NQ rev (3m)21.56%
EPS NY rev (1m)13.32%
EPS NY rev (3m)16.78%
Revenue NQ rev (1m)4.6%
Revenue NQ rev (3m)5.59%
Revenue NY rev (1m)2.26%
Revenue NY rev (3m)3.04%
Valuation
Industry RankSector Rank
PE 105.45
Fwd PE 47.56
P/S 18.03
P/FCF 67.38
P/OCF 66.8
P/B 13.15
P/tB 13.46
EV/EBITDA 110.4
EPS(TTM)1.74
EY0.95%
EPS(NY)3.86
Fwd EY2.1%
FCF(TTM)2.72
FCFY1.48%
OCF(TTM)2.75
OCFY1.5%
SpS10.18
BVpS13.95
TBVpS13.63
PEG (NY)0.82
PEG (5Y)N/A
Graham Number23.37
Profitability
Industry RankSector 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 RankSector 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 79.12
F-Score8
WACC9.96%
ROIC/WACC0.79
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 105.45 and the Price/Book (PB) ratio is 13.15.


Can you provide the financial health for RDDT stock?

The financial health rating of REDDIT INC-CL A (RDDT) is 8 / 10.