Reading International (RDI) AI Stock Analysis

• Market Cap: $43.01M
• Dividend Yield: N/A
• Average Volume (3M): 28.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -7.36%
• EPS Growth: 18.52%
• Country: US
• Employees: 2,025
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.46
• Shares Outstanding: 20,795,843
• 10 Day Avg. Volume: 25,785
• 30 Day Avg. Volume: 28,023
• PEG Ratio: <0.01
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.71
• Enterprise Value/Market Cap: 11.04
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 26.36
• Enterprise Value/Ebitda: -195.66
• 1Y Price Target: $2.50
• Price Target Upside: 98.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $1.50 ▲(19.05%Upside)

The most significant factor impacting the score is the company's financial instability, with persistent losses and negative equity leading to a low financial performance score. Technical indicators and valuation metrics further contribute to the low score, reflecting bearish sentiment and lack of profitability. While the earnings call indicated some positive developments, they are not sufficient to counterbalance the overall financial challenges.

Reading International Business Overview & Revenue Model

Company Description

Reading International, Inc. (RDI) is a diversified company primarily engaged in the ownership and operation of entertainment and real estate businesses. The company operates through two main segments: Cinema Exhibition and Real Estate. In the Cinema Exhibition segment, RDI owns and manages a portfolio of theaters in the United States, Australia, and New Zealand, offering a range of films and live theater productions. The Real Estate segment focuses on the development, ownership, and operation of real estate properties, including entertainment-themed retail centers and commercial properties.

How the Company Makes Money

Reading International generates revenue primarily through its Cinema Exhibition segment by selling movie tickets, concessions, and advertising within its theaters. This segment leverages the popularity of major film releases and live events to drive attendance and sales. Additionally, the Real Estate segment contributes to RDI's revenue through leasing and development activities. Rental income from tenants in its retail centers and commercial properties forms a steady income stream. Strategic partnerships with film distributors and real estate developers, alongside a diversified portfolio of properties and theaters, bolster its earnings.

Reading International Financial Statement Overview

Summary

Reading International is facing significant financial challenges, with persistent net losses and negative equity signaling financial instability. Despite minor improvements in cash flow management, the company's financial health remains weak due to operational inefficiencies and leverage issues.

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: Negative
• Last Price: 1.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 below the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.35, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 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	71 Outperform	$3.53B	20.28	71.46%	1.06%	-0.80%	13.07%
Sector *	61 Neutral	$41.24B	-0.79	-14.21%	3.80%	2.39%	-73.52%
MCS	60 Neutral	$523.24M	―	-2.83%	1.64%	4.18%	-207.46%
AMCX	57 Neutral	$276.30M	13.94	-25.83%	―	-8.14%	-258.98%
CNVS	56 Neutral	$103.33M	40.98	10.01%	―	39.86%	3.86%
AMC	47 Neutral	$1.28B	―	20.03%	―	-5.43%	26.07%
RDI	42 Neutral	$43.01M	―	-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.