Reading International (RDI) AI Stock Analysis

• Market Cap: $42.47M
• Dividend Yield: N/A
• Average Volume (3M): 323.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 7.11%
• EPS Growth: 69.85%
• Country: US
• Employees: 2,025
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.18
• Shares Outstanding: 21,036,670
• 10 Day Avg. Volume: 903,282
• 30 Day Avg. Volume: 323,299
• PEG Ratio: -0.06
• Price to Book (P/B): -6.78
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -3.16
• Enterprise Value/Market Cap: 9.07
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 16.13
• Enterprise Value/Ebitda: 11.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.50 ▲(36.36% Upside)

Reading International's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage, negative equity, and declining revenues. While the earnings call provided some positive insights into strategic initiatives and debt reduction, these are overshadowed by ongoing profitability challenges. Technical indicators and valuation metrics further highlight the stock's struggles, resulting in a low overall score.

Positive Factors

Debt Reduction

Reducing debt by 15% enhances financial stability and reduces interest expenses, improving long-term cash flow and financial flexibility.

EBITDA Improvement

Consistent EBITDA growth over five quarters indicates operational efficiency and potential for sustained profitability improvements.

Strategic Real Estate Sales

Strategic asset sales provide liquidity and reduce leverage, supporting operational needs and enhancing financial health.

Negative Factors

Revenue Decline

A 13% revenue decline due to a weaker film slate and forex impacts challenges the company's growth prospects and market position.

Cinema Revenue Decrease

A 14% drop in cinema revenue highlights vulnerability to content cycles and competitive pressures, impacting core business stability.

Challenges in Australia and New Zealand

Significant revenue declines in key markets like Australia and New Zealand indicate regional operational challenges and market saturation.

Reading International Business Overview & Revenue Model

Company Description

Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Angelika Film Center, Consolidated Theatres, State Cinema, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. As of December 31, 2020, the company had interests in 63 cinemas comprising approximately 515 screens; fee interests in two live theaters; fee interest in 44 Union Square property; fee interest in one cinema in Manhattan; fee interests in two cinemas in Australia and three cinemas in New Zealand; fee interest in entertainment-themed centers; fee interest in 2 office buildings; and fee ownership of approximately 8.9 million square feet of developed and undeveloped real estate assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.

How the Company Makes Money

Reading International generates revenue primarily through two key streams: cinema operations and real estate leasing. In the cinema segment, revenue is derived from ticket sales, concessions, and advertising. The company operates numerous cinema locations, and ticket sales are influenced by box office hits, seasonal trends, and promotional events. Concessions, including food and beverages, also contribute significantly to overall cinema revenue. In addition to cinema operations, RDI earns income through leasing its real estate assets to various tenants, including retail businesses. This leasing income is bolstered by long-term leases, which provide a steady cash flow. The company may also engage in strategic partnerships with film studios for exclusive screenings or promotional events, enhancing its revenue potential. Overall, Reading International's earnings are closely linked to both the performance of the cinema industry and the demand for retail space in its owned properties.

Reading International Financial Statement Overview

Summary

Reading International faces significant financial challenges. The income statement shows declining revenues and negative profitability. The balance sheet is burdened with high leverage and negative equity, posing financial stability risks. Cash flow generation is weak, with negative growth and limited operational cash flow.

Income Statement

Reading International's income statement reveals challenges in profitability and growth. The TTM data shows a negative net profit margin of -8.23% and a declining revenue growth rate of -3.61%. The gross profit margin is relatively low at 11.31%, indicating limited pricing power or high costs. The EBIT margin is negative, reflecting operational inefficiencies. Despite a positive EBITDA margin of 15.30%, the overall profitability remains weak.

Balance Sheet

The balance sheet indicates significant financial leverage with a negative stockholders' equity, resulting in a high debt-to-equity ratio of -29.84. This poses a risk to financial stability. The return on equity is positive at 2.16%, but this is due to the negative equity base rather than strong performance. The equity ratio is not calculable due to negative equity, highlighting financial distress.

Cash Flow

Cash flow analysis shows a mixed picture. The TTM free cash flow growth rate is negative at -240.85%, indicating cash flow challenges. However, the free cash flow to net income ratio is 0.55, suggesting some ability to convert earnings into cash. The operating cash flow to net income ratio is low at 0.02, pointing to limited cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	211.29M	210.53M	222.74M	203.12M	139.06M	77.86M
Gross Profit	23.89M	21.91M	26.56M	15.40M	6.05M	-21.78M
EBITDA	32.46M	2.90M	8.94M	1.11M	100.34M	-38.11M
Net Income	-17.39M	-35.30M	-30.67M	-36.18M	31.92M	-65.20M
Balance Sheet
Total Assets	435.19M	471.01M	533.05M	641.72M	687.70M	690.17M
Cash, Cash Equivalents and Short-Term Investments	8.09M	12.36M	12.92M	35.00M	83.25M	26.85M
Total Debt	359.97M	390.22M	418.78M	443.60M	487.06M	524.14M
Total Liabilities	448.20M	475.80M	500.06M	578.44M	582.64M	609.00M
Stockholders Equity	-12.06M	-4.36M	33.09M	62.86M	104.07M	77.77M
Cash Flow
Free Cash Flow	1.16M	-9.37M	-15.08M	-35.74M	-26.97M	-48.73M
Operating Cash Flow	2.13M	-3.83M	-10.60M	-26.35M	-11.41M	-30.20M
Investing Cash Flow	36.29M	3.96M	-2.70M	-9.49M	129.61M	-18.77M
Financing Cash Flow	-37.96M	337.00K	-5.80M	-16.56M	-52.37M	59.33M

Reading International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDI, the sentiment is Negative. The current price of 1.1 is above the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.21, and below the 200-day MA of 1.34, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.85 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDI.

Reading International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCS	63 Neutral	$457.73M	64.89	1.68%	1.97%	6.28%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CNK	58 Neutral	$2.67B	21.85	32.60%	1.45%	9.70%	-31.62%
AMCX	57 Neutral	$371.28M	―	-12.87%	―	-7.38%	-483.59%
CNVS	46 Neutral	$39.26M	-24.10	-3.49%	―	77.29%	97.98%
AMC	46 Neutral	$841.23M	-1.22	―	―	9.74%	12.29%
RDI	44 Neutral	$42.47M	-1.80	―	―	7.11%	69.85%

Reading International Corporate Events

Reading International Holds Annual Stockholders Meeting

On December 4, 2025, Reading International Inc. held its Annual Meeting of Stockholders, where stockholders elected five directors, ratified the appointment of Grant Thornton LLP as the independent auditor, and approved executive compensation on an advisory basis. These decisions are expected to influence the company’s governance and financial oversight. The company also emphasized its strategic priorities for 2026, which include improving global cinema operations, reducing debt, and monetizing assets to enhance long-term stockholder value.

The most recent analyst rating on (RDI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Reading International stock, see the RDI Stock Forecast page.