NasdaqCM:RDI

Stock Analysis Report

Reading International

Executive Summary

Reading International, Inc. engages in the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand.

Rewards

Earnings are forecast to grow 39.34% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (2.2%) are lower than last year (5.5%)



Snowflake Analysis

Reasonable growth potential and overvalued.


Similar Companies

Share Price & News

How has Reading International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RDI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

RDI

1.5%

US Entertainment

1.7%

US Market


1 Year Return

-29.6%

RDI

22.4%

US Entertainment

23.6%

US Market

Return vs Industry: RDI underperformed the US Entertainment industry which returned 21.9% over the past year.

Return vs Market: RDI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

RDIIndustryMarket
7 Day-2.5%1.5%1.7%
30 Day2.5%2.3%3.5%
90 Day-6.3%14.0%11.7%
1 Year-29.6%-29.6%23.2%22.4%26.2%23.6%
3 Year-34.0%-34.0%60.3%55.1%53.2%43.3%
5 Year-9.5%-9.5%103.7%91.3%75.5%56.1%

Price Volatility Vs. Market

How volatile is Reading International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reading International undervalued compared to its fair value and its price relative to the market?

40.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RDI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RDI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RDI is poor value based on its PE Ratio (40.7x) compared to the Entertainment industry average (25.6x).

PE vs Market: RDI is poor value based on its PE Ratio (40.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RDI is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: RDI is good value based on its PB Ratio (1.5x) compared to the US Entertainment industry average (2.5x).


Next Steps

Future Growth

How is Reading International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

39.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDI's forecast earnings growth (39.3% per year) is above the savings rate (1.7%).

Earnings vs Market: RDI's earnings (39.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RDI's revenue (10.2% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: RDI's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDI's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Reading International performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDI has a large one-off loss of $3.5M impacting its September 30 2019 financial results.

Growing Profit Margin: RDI's current net profit margins (2.2%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: RDI's earnings have declined by -15.1% per year over the past 5 years.

Accelerating Growth: RDI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RDI had negative earnings growth (-63.3%) over the past year, making it difficult to compare to the Entertainment industry average (8.8%).


Return on Equity

High ROE: RDI's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Reading International's financial position?


Financial Position Analysis

Short Term Liabilities: RDI's short term assets ($25.1M) do not cover its short term liabilities ($101.2M).

Long Term Liabilities: RDI's short term assets ($25.1M) do not cover its long term liabilities ($392.9M).


Debt to Equity History and Analysis

Debt Level: RDI's debt to equity ratio (117.7%) is considered high.

Reducing Debt: RDI's debt to equity ratio has reduced from 129.3% to 117.7% over the past 5 years.

Debt Coverage: RDI's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: RDI's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: RDI has a high level of physical assets or inventory.

Debt Coverage by Assets: RDI's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Reading International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RDI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RDI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RDI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RDI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RDI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Reading International's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Ellen Cotter (53yo)

4.6yrs

Tenure

US$1,340,124

Compensation

Ms. Ellen Marie Cotter has been Chief Executive Officer and President at Reading International, Inc. since January 8, 2016 and has been its Chairperson since August 7, 2014. Ms. Cotter served as the Chief  ...


CEO Compensation Analysis

Compensation vs Market: Ellen's total compensation ($USD1.34M) is about average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Ellen's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

59yo

Average Age

Experienced Management: RDI's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

67yo

Average Age

Experienced Board: RDI's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: RDI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$162,15027 Dec 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares15,000
Max PriceUS$10.81
SellUS$25,92511 Dec 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares2,500
Max PriceUS$10.37
SellUS$105,06005 Sep 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares8,500
Max PriceUS$12.36
SellUS$100,12522 Jun 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares7,500
Max PriceUS$13.35
SellUS$54,04020 Jun 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares4,000
Max PriceUS$13.51
SellUS$151,00411 Jun 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares11,505
Max PriceUS$13.19
SellUS$26,27003 Jun 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares2,000
Max PriceUS$13.13
SellUS$65,30030 May 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares5,000
Max PriceUS$13.06
SellUS$28,82021 May 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares2,000
Max PriceUS$14.41
SellUS$224,30526 Mar 19
Margaret Cotter
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares13,995
Max PriceUS$16.03

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • S. Tompkins (68yo)

    Executive VP & General Counsel

    • Tenure: 2.6yrs
    • Compensation: US$671.29k
  • Ellen Cotter (53yo)

    Chairperson of the Board

    • Tenure: 4.6yrs
    • Compensation: US$1.34m
  • Robert Smerling (84yo)

    President of US Cinemas

    • Tenure: 4yrs
    • Compensation: US$609.30k
  • Andrzej Matyczynski (66yo)

    Executive Vice President of Global Operations

    • Tenure: 3.8yrs
    • Compensation: US$541.74k
  • Dev Ghose (65yo)

    • Compensation: US$840.95k
  • Margaret Cotter (51yo)

    Vice Chairperson

    • Tenure: 5.4yrs
    • Compensation: US$602.93k
  • Guy Adams (68yo)

    Lead Technology & Cyber Risk Director and Director

    • Tenure: 6yrs
    • Compensation: US$219.75k
  • Matthew Bourke (50yo)

    Managing Director of Real Estate

    • Tenure: 3.2yrs
  • Steve Lucas (48yo)

    Chief Accounting Officer

    • Gilbert Avanes (45yo)

      CFO, Executive VP & Treasurer

      • Tenure: 1yrs

    Board Members

    • Ellen Cotter (53yo)

      Chairperson of the Board

      • Tenure: 4.6yrs
      • Compensation: US$1.34m
    • Margaret Cotter (51yo)

      Vice Chairperson

      • Tenure: 5.4yrs
      • Compensation: US$602.93k
    • Edward Kane (81yo)

      Lead Independent Director

      • Compensation: US$220.07k
    • Guy Adams (68yo)

      Lead Technology & Cyber Risk Director and Director

      • Tenure: 6yrs
      • Compensation: US$219.75k
    • Judy Codding (74yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$198.75k
    • Doug McEachern (67yo)

      Independent Director

      • Tenure: 7.7yrs
      • Compensation: US$213.75k
    • Michael Wrotniak (52yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$204.03k

    Company Information

    Reading International, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Reading International, Inc.
    • Ticker: RDI
    • Exchange: NasdaqCM
    • Founded: 1999
    • Industry: Movies and Entertainment
    • Sector: Media
    • Market Cap: US$265.473m
    • Shares outstanding: 22.09m
    • Website: https://www.readingrdi.com

    Number of Employees


    Location

    • Reading International, Inc.
    • 5995 Sepulveda Boulevard
    • Suite 300
    • Culver City
    • California
    • 90230
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    RDINasdaqCM (Nasdaq Capital Market)YesClass A Non-Voting Common StockUSUSDJan 2000
    RDIBNasdaqCM (Nasdaq Capital Market)Class B Voting Common StockUSUSDJan 2000

    Biography

    Reading International, Inc. engages in 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 Centers, Consolidated Theatres, City Cinemas, and Rialto brands. The Real Estate segment owns, develops, rents, or licenses retail, commercial, and live theater assets. As of December 31, 2018, the company had interests in 59 cinemas comprising approximately 478 screens; fee interests in 3 live theaters; fee interest in 1 cinema in New York City; fee interests in 2 cinemas in Australia and 4 cinemas in New Zealand; fee interest in Union Square property; entertainment-themed centers; interest in 70.4 acres of developable land; a 50% interest in 202 acres of developable land; fee interest in 2 office buildings; and fee ownership of approximately 20.7 million square feet of developed and undeveloped real estate assets. Reading International, Inc. was incorporated in 1999 and is headquartered in Culver City, California. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 23:43
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.