Reading International (RDI) AI Stock Analysis

• Market Cap: $52.13M
• Dividend Yield: N/A
• Average Volume (3M): 28.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -7.36%
• EPS Growth: 18.52%
• Country: US
• Employees: 2,025
• Sector: Communication Services
• Sector Strength: 92
• Industry: Entertainment
• EPS (TTM): -0.12
• Shares Outstanding: 20,795,843
• 10 Day Avg. Volume: 36,617
• 30 Day Avg. Volume: 28,444
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 7.47
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 21.64
• Enterprise Value/Ebitda: 63.78
• 1Y Price Target: $1.50
• Price Target Upside: 4.17% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: $1.50 ▲(4.17% Upside)

The overall stock score reflects significant financial instability, weak technical indicators, and poor valuation metrics. Despite some positive developments in the earnings call, the company's ongoing financial challenges and lack of profitability weigh heavily on its prospects.

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 through multiple streams, primarily from its cinema operations and real estate activities. The company's theatrical exhibition segment earns money from ticket sales, concessions, and advertising revenue within its theaters. Additionally, RDI's real estate development initiatives contribute to its revenue through leasing commercial properties and developing real estate projects. The company may also engage in partnerships with film distributors and local businesses, enhancing its market reach and promotional efforts. Factors such as the popularity of films, consumer spending trends, and effective management of its real estate portfolio significantly influence its earnings.

Reading International Financial Statement Overview

Summary

Reading International faces significant financial challenges with negative revenue growth, persistent net losses, substantial leverage, and negative equity. Marginal improvements in cash flow management do not offset the overall financial instability and operational inefficiencies.

Income Statement

Reading International has been experiencing a decline in revenue over the TTM compared to the previous year, with a negative revenue growth rate of -2.32%. The company has negative EBIT and EBITDA margins, indicating operational challenges. Gross profit margin improved slightly in recent periods, but net profit margin remains negative due to persistent net losses. Overall, the income statement reflects ongoing profitability issues.

Balance Sheet

The company's balance sheet reveals significant leverage with a negative stockholders' equity, leading to an undefined debt-to-equity ratio, highlighting financial risk. Furthermore, the equity ratio is negative due to the deficit in equity. The declining total assets and increasing total liabilities over time further stress the financial instability of the company.

Cash Flow

Operating cash flow is negative, but there is a notable improvement in free cash flow in the TTM, reducing losses. However, the operating cash flow to net income ratio remains negative, indicating cash flow issues relative to net losses. Despite some improvement in free cash flow, overall cash flow management remains a challenge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	205.64M	210.53M	222.74M	203.12M	139.06M	77.86M
Gross Profit	18.01M	21.91M	26.56M	15.40M	6.05M	-21.78M
EBITDA	6.11M	2.90M	8.94M	1.40M	100.34M	-17.80M
Net Income	-30.40M	-35.30M	-30.67M	-36.18M	31.92M	-65.86M
Balance Sheet
Total Assets	440.97M	471.01M	533.05M	587.05M	687.70M	690.17M
Cash, Cash Equivalents and Short-Term Investments	5.93M	12.36M	12.92M	29.96M	83.25M	26.85M
Total Debt	367.43M	390.22M	418.78M	443.61M	481.09M	524.14M
Total Liabilities	449.65M	475.80M	500.06M	523.78M	582.64M	609.00M
Stockholders Equity	-8.06M	-4.36M	33.09M	62.86M	104.07M	77.77M
Cash Flow
Free Cash Flow	-6.50M	-3.83M	-15.08M	-35.74M	-29.05M	-48.73M
Operating Cash Flow	-8.77M	-3.83M	-9.73M	-26.35M	-13.50M	-30.20M
Investing Cash Flow	14.20M	3.96M	-2.70M	-9.49M	129.61M	-18.77M
Financing Cash Flow	-5.29M	337.00K	-6.67M	-16.56M	-50.28M	59.33M

Reading International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.44 is above the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.34, and above the 200-day MA of 1.39, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 87.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDI.

Reading International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNVS	73 Outperform	$100.77M	39.96	9.22%	―	59.13%	―
MCS	65 Neutral	$461.94M	34.12	3.30%	1.81%	13.28%	―
CNK	64 Neutral	$2.91B	13.90	70.99%	0.63%	13.80%	109.00%
Sector *	60 Neutral	$44.04B	1.92	-11.93%	4.00%	2.47%	-38.33%
AMCX	50 Neutral	$307.16M	13.94	-17.26%	―	-7.25%	-395.48%
AMC	46 Neutral	$1.56B	―	20.03%	―	9.42%	39.83%
RDI	40 Underperform	$52.13M	―	-540.12%	―	-7.36%	18.52%

Reading International Corporate Events

Reading International Holds Successful 2024 Annual Meeting

Reading International, Inc. held its 2024 Annual Meeting, where stockholders approved an amendment to increase shares under the 2020 Stock Plan, elected directors, ratified the appointment of Grant Thornton LLP as the independent auditor, and approved executive compensation. These decisions are aimed at supporting the company’s liquidity and operational strategies, reflecting Reading International’s commitment to maintaining and enhancing its industry position and financial performance.