Reading International (RDI) AI Stock Analysis

• Market Cap: $37.96M
• Dividend Yield: N/A
• Average Volume (3M): 47.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -5.48%
• EPS Growth: -14.32%
• Country: US
• Employees: 2,025
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): -0.46
• Shares Outstanding: 20,603,203
• 10 Day Avg. Volume: 47,570
• 30 Day Avg. Volume: 47,264
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.16
• Price to Cash Flow (P/CF): 5.90
• P/FCF Ratio: 1.70
• Enterprise Value/Market Cap: 10.65
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 15.22
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.50
• Price Target Upside: 98.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Reading International's overall stock score reflects significant financial weaknesses, with persistent losses and high debt levels. Despite recent positive developments in earnings and strategic initiatives, the company's valuation and technical indicators remain concerning. The recovery in Q4 2024 is encouraging, but the company faces ongoing challenges, including external industry impacts and a need for further financial stabilization.

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 makes money through several key revenue streams. The primary source of revenue is from its cinema exhibition operations, where it earns income from ticket sales, concessions, and advertising. The company operates numerous cinemas, generating substantial revenue from customers attending movie screenings. Another significant revenue stream is from the operation of live theatres, which includes earnings from ticket sales for theatrical productions and related events. Additionally, RDI generates income from its real estate operations, including leasing space to retail and commercial tenants and developing properties for sale or lease. Strategic partnerships with film distributors, production companies, and other entertainment entities also contribute to its earnings, enhancing its ability to offer a diverse range of entertainment options.

Reading International Financial Statement Overview

Summary

Reading International faces significant financial challenges across all verticals, with declining revenues, high leverage, and negative profit margins. The company's liquidity and operational efficiency are areas of concern, with a need for strategic adjustments to improve financial health and stability.

Income Statement

Reading International's income statement shows a declining revenue trend with a negative net profit margin in the TTM period. The gross profit margin has significantly decreased, indicating rising costs or declining sales. Negative EBIT and EBITDA margins further highlight operational challenges. The company's revenue growth has been inconsistent, with a notable decline in the latest TTM period.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, showcasing significant leverage which could pose financial risks. Stockholders' equity has decreased substantially, reducing the equity ratio. The return on equity is negative due to sustained losses, indicating inefficiencies in generating returns on shareholders' investments.

Cash Flow

Operating cash flow is negative, reflecting potential liquidity issues, although free cash flow has slightly improved. The cash flow to net income ratios are unfavorable, suggesting difficulties in converting income into cash flow. However, the company has managed to reduce capital expenditures, slightly aiding free cash flow.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
222.74M	203.12M	139.06M	77.86M	276.77M
	Gross Profit
26.56M	15.40M	6.05M	-21.78M	57.27M
	EBIT
-12.03M	-19.85M	-41.79M	-61.31M	9.12M
	EBITDA
9.12M	1.40M	100.34M	-17.80M	32.99M
	Net Income Common Stockholders
-30.67M	-36.66M	31.92M	-65.86M	-26.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.17M	29.96M	83.25M	26.85M	12.13M
	Total Assets
533.05M	587.05M	687.70M	690.17M	674.99M
	Total Debt
418.77M	443.61M	481.09M	524.14M	450.56M
	Net Debt
405.87M	413.66M	397.84M	497.31M	438.42M
	Total Liabilities
500.06M	523.78M	582.64M	609.00M	535.37M
	Stockholders Equity
33.09M	62.86M	104.07M	77.77M	135.35M
Cash Flow		Free Cash Flow
-15.08M	-35.74M	-29.05M	-48.73M	-21.10M
	Operating Cash Flow
-9.73M	-26.35M	-13.50M	-30.20M	24.61M
	Investing Cash Flow
-2.70M	-9.49M	129.61M	-18.77M	-51.93M
	Financing Cash Flow
-6.67M	-16.56M	-50.28M	59.33M	26.01M

Reading International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 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 1.26 is above the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.32, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 43.55 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
CNK	75 Outperform	$3.52B	14.52	67.31%	0.27%	-0.56%	63.92%
Sector *	59 Neutral	$13.76B	7.64	-1.94%	3.86%	2.38%	-36.56%
MCS	57 Neutral	$509.29M	―	-1.66%	1.70%	0.82%	-152.64%
CNVS	56 Neutral	$46.82M	―	-29.22%	―	39.86%	3.86%
AMCX	45 Neutral	$265.25M	13.94	-23.80%	―	-10.71%	-202.93%
AMC	45 Neutral	$1.15B	―	20.03%	―	-3.64%	48.94%
RDI	40 Underperform	$37.96M	―	-245.80%	―	-5.48%	-14.32%

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.