Reading International (RDI) AI Stock Analysis

• Market Cap: $46.21M
• Dividend Yield: N/A
• Average Volume (3M): 27.45K
• 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: 44,118
• 30 Day Avg. Volume: 27,455
• 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: 8.25
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 15.96
• Enterprise Value/Ebitda: 11.74
• 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 ▲(15.38% 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 (RDI) is a diversified real estate and entertainment company based in the United States, primarily engaging in the operation of cinemas and the ownership of real estate assets. The company operates in two main sectors: cinema exhibition and real estate. RDI's core products and services include operating multiplex cinemas under the 'Reading Cinemas' brand, as well as owning and managing a portfolio of commercial real estate properties, including retail and mixed-use developments.

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: 1.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.3 is above the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.40, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 is Neutral, 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CNK	59 Neutral	$3.22B	26.63	32.60%	1.23%	9.70%	-31.62%
MCS	57 Neutral	$471.84M	66.89	1.68%	1.91%	6.28%	―
AMCX	56 Neutral	$388.26M	―	-12.87%	―	-7.38%	-483.59%
AMC	47 Neutral	$1.26B	―	―	―	9.74%	12.29%
CNVS	46 Neutral	$48.26M	―	-3.49%	―	77.29%	97.98%
RDI	44 Neutral	$46.21M	―	―	―	7.11%	69.85%

Reading International Corporate Events

Reading International Reports Q3 2025 Earnings

Reading International, Inc. is a Nevada-based company engaged in the development, ownership, and operation of cinemas and real estate assets across the United States, Australia, and New Zealand. The company’s unique blend of cinema and real estate operations provides a diversified business model.

Reading International’s Earnings Call: Growth Amid Challenges

Reading International’s recent earnings call painted a picture of both progress and challenges. The company reported significant improvements in operating income and revenue growth, alongside a commendable reduction in debt. However, it continues to face hurdles in real estate revenue and net loss positions, influenced by asset sales and currency exchange rates.