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.


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

-1.6%

RDI

-0.4%

US Entertainment

-1.1%

US Market


1 Year Return

-39.7%

RDI

18.0%

US Entertainment

17.9%

US Market

Return vs Industry: RDI underperformed the US Entertainment industry which returned 18% over the past year.

Return vs Market: RDI underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

RDIIndustryMarket
7 Day-1.6%-0.4%-1.1%
30 Day-4.7%2.4%1.4%
90 Day-10.4%5.1%6.9%
1 Year-39.7%-39.7%18.8%18.0%20.3%17.9%
3 Year-39.4%-39.4%54.3%49.3%47.8%38.3%
5 Year-24.6%-24.6%93.0%81.2%71.9%53.0%

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?

36.21x

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 (36.2x) compared to the Entertainment industry average (23.8x).

PE vs Market: RDI is poor value based on its PE Ratio (36.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: RDI is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: RDI is good value based on its PB Ratio (1.4x) compared to the US Entertainment industry average (2.3x).


Next Steps

Future Growth

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

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDI's forecast earnings growth (27.9% per year) is above the savings rate (1.7%).

Earnings vs Market: RDI's earnings (27.9% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: RDI's revenue (10.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: RDI's revenue (10.6% 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 (4.5%).


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 (-9.8%).


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

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Ellen Cotter (53yo)

4.7yrs

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 ($USD1.34M) is about average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ellen Cotter
Chairperson of the Board4.7yrsUS$1.34m3.95% $9.5m
Margaret Cotter
Vice Chairperson5.5yrsUS$602.93k4.1% $9.8m
S. Tompkins
Executive VP & General Counsel2.7yrsUS$671.29k0.28% $672.4k
Guy Adams
Lead Technology & Cyber Risk Director and Director6.1yrsUS$219.75k0.060% $143.4k
Robert Smerling
President of US Cinemas4.1yrsUS$609.30k0.044% $105.4k
Gilbert Avanes
CFO, Executive VP & Treasurer1.1yrsno data0.0064% $15.4k
Andrzej Matyczynski
Executive Vice President of Global Operations3.9yrsUS$541.74k0.13% $317.0k
Steve Lucas
Chief Accounting Officer0yrsno datano data
Matthew Bourke
Managing Director of Real Estate3.3yrsno datano data
Mark Douglas
Managing Director of Reading Cinemas2.1yrsno datano data

3.6yrs

Average Tenure

52yo

Average Age

Experienced Management: RDI's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ellen Cotter
Chairperson of the Board4.7yrsUS$1.34m3.95% $9.5m
Margaret Cotter
Vice Chairperson5.5yrsUS$602.93k4.1% $9.8m
Guy Adams
Lead Technology & Cyber Risk Director and Director6.1yrsUS$219.75k0.060% $143.4k
Edward Kane
Lead Independent Director0yrsUS$220.07k0.099% $237.9k
Judy Codding
Independent Director4.3yrsUS$198.75k0.082% $197.7k
Douglas McEachern
Independent Director7.8yrsUS$213.75k0.22% $526.8k
Michael Wrotniak
Independent Director4.3yrsUS$204.03k0.14% $333.5k

5.5yrs

Average Tenure

67yo

Average Age

Experienced Board: RDI's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$239.851m
  • 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
46BDB (Deutsche Boerse AG)YesClass A Non-Voting Common StockDEEURJan 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 Analysis2020/02/23 01:15
End of Day Share Price2020/02/21 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.