Is Reading International Stock a Good Investment?
Reading International Investment Advice | RDI |
- Examine Reading International's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Reading International's leadership team and their track record. Good management can help Reading International navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Reading International's business and its evolving consumer preferences.
- Compare Reading International's performance and market position to its competitors. Analyze how Reading International is positioned in terms of product offerings, innovation, and market share.
- Check if Reading International pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Reading International's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Reading International stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Reading International is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Reading International Stock
Researching Reading International's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 20.0% of the company outstanding shares are owned by corporate insiders. The company recorded a loss per share of 1.88. Reading International had not issued any dividends in recent years. The entity had 3:2 split on the 26th of April 1993.
To determine if Reading International is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Reading International's research are outlined below:
| Reading International generated a negative expected return over the last 90 days | |
| Reading International may become a speculative penny stock | |
| Reading International has high historical volatility and very poor performance | |
| Reading International has 418.77 M in debt with debt to equity (D/E) ratio of 5.62, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Reading International has a current ratio of 0.48, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Reading to invest in growth at high rates of return. | |
| The entity reported the last year's revenue of 222.74 M. Reported Net Loss for the year was (30.67 M) with profit before taxes, overhead, and interest of 6.05 M. | |
| Reading International has about 51.39 M in cash with (10.6 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.33, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Reading International has a frail financial position based on the latest SEC disclosures | |
| Roughly 20.0% of Reading International outstanding shares are owned by corporate insiders | |
| Latest headline from news.google.com: Reading International, Inc. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2024 - Marketscreener.com |
Reading International Quarterly Liabilities And Stockholders Equity |
|
Reading International uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Reading International. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Reading International's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of April 2024 Upcoming Quarterly Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View |
Earnings surprises can significantly impact Reading International's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Reading International's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-11-06 | 2018-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2017-05-09 | 2017-03-31 | 0.11 | 0.13 | 0.02 | 18 | ||
2020-06-25 | 2020-03-31 | -0.24 | -0.27 | -0.03 | 12 | ||
2018-05-10 | 2018-03-31 | 0.11 | 0.08 | -0.03 | 27 | ||
2018-03-16 | 2017-12-31 | 0.14 | 0.11 | -0.03 | 21 | ||
2017-08-08 | 2017-06-30 | 0.16 | 0.13 | -0.03 | 18 | ||
2010-08-06 | 2010-06-30 | -0.04 | -0.01 | 0.03 | 75 | ||
2017-11-06 | 2017-09-30 | 0.11 | 0.07 | -0.04 | 36 |
Know Reading International's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Reading International is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Reading International backward and forwards among themselves. Reading International's institutional investor refers to the entity that pools money to purchase Reading International's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Blackrock Inc | 2024-06-30 | 86.8 K | Gabelli Funds Llc | 2024-09-30 | 52.5 K | Northern Trust Corp | 2024-09-30 | 48.3 K | Keller Group Invmt Management Inc | 2024-06-30 | 45.7 K | Susquehanna International Group, Llp | 2024-06-30 | 44.4 K | State Street Corp | 2024-06-30 | 44.1 K | Elkhorn Partners Limited Partnership | 2024-09-30 | 42.5 K | Logan Stone Capital, Llc | 2024-06-30 | 26.6 K | Nj State Employees Deferred Compnstin Pl | 2024-09-30 | 13.5 K | Nantahala Capital Management, Llc | 2024-09-30 | 3.2 M | Krilogy Advisors Llc | 2024-09-30 | 2.1 M |
Reading International's market capitalization trends
The company currently falls under 'Micro-Cap' category with a total capitalization of 40.65 M.Market Cap |
|
Reading International's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.06) | (0.06) | |
| Return On Capital Employed | (0.03) | (0.03) | |
| Return On Assets | (0.06) | (0.06) | |
| Return On Equity | (0.93) | (0.88) |
Determining Reading International's profitability involves analyzing its financial statements and using various financial metrics to determine if Reading International is a good buy. For example, gross profit margin measures Reading International's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Reading International's profitability and make more informed investment decisions.
Evaluate Reading International's management efficiency
Reading International has Return on Asset of (0.0213) % which means that on every $100 spent on assets, it lost $0.0213. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (1.399) %, meaning that it generated no profit with money invested by stockholders. Reading International's management efficiency ratios could be used to measure how well Reading International manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to -0.06. The current Return On Capital Employed is estimated to decrease to -0.03. As of now, Reading International's Intangibles To Total Assets are decreasing as compared to previous years.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.48 | 1.41 | |
| Tangible Book Value Per Share | 0.24 | 0.23 | |
| Enterprise Value Over EBITDA | 49.16 | 51.62 | |
| Price Book Value Ratio | 1.28 | 0.88 | |
| Enterprise Value Multiple | 49.16 | 51.62 | |
| Price Fair Value | 1.28 | 0.88 | |
| Enterprise Value | 448.3 M | 244.7 M |
Management at Reading International focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Beta 1.616 |
Basic technical analysis of Reading Stock
As of the 26th of November, Reading International holds the Risk Adjusted Performance of (0.02), coefficient of variation of (2,380), and Variance of 18.82. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Reading International, as well as the relationship between them.Reading International's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Reading International insiders, such as employees or executives, is commonly permitted as long as it does not rely on Reading International's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Reading International insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Reading International's Outstanding Corporate Bonds
Reading International issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Reading International uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Reading bonds can be classified according to their maturity, which is the date when Reading International has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Reading International's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Reading International's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.23) | |||
| Mean Deviation | 2.99 | |||
| Coefficient Of Variation | (2,380) | |||
| Standard Deviation | 4.34 | |||
| Variance | 18.82 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.29) | |||
| Total Risk Alpha | (0.88) | |||
| Treynor Ratio | (0.24) | |||
| Maximum Drawdown | 25.78 | |||
| Value At Risk | (6.67) | |||
| Potential Upside | 8.0 | |||
| Skewness | (0.74) | |||
| Kurtosis | 3.52 |
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.23) | |||
| Mean Deviation | 2.99 | |||
| Coefficient Of Variation | (2,380) | |||
| Standard Deviation | 4.34 | |||
| Variance | 18.82 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.29) | |||
| Total Risk Alpha | (0.88) | |||
| Treynor Ratio | (0.24) | |||
| Maximum Drawdown | 25.78 | |||
| Value At Risk | (6.67) | |||
| Potential Upside | 8.0 | |||
| Skewness | (0.74) | |||
| Kurtosis | 3.52 |
Consider Reading International's intraday indicators
Reading International intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Reading International stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Reading International time-series forecasting models is one of many Reading International's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Reading International's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Reading Stock media impact
Far too much social signal, news, headlines, and media speculation about Reading International that are available to investors today. That information is available publicly through Reading media outlets and privately through word of mouth or via Reading internal channels. However, regardless of the origin, that massive amount of Reading data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Reading International news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Reading International relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Reading International's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Reading International alpha.
Reading International Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Reading International can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Reading International Corporate Executives
Elected by the shareholders, the Reading International's board of directors comprises two types of representatives: Reading International inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Reading. The board's role is to monitor Reading International's management team and ensure that shareholders' interests are well served. Reading International's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Reading International's outside directors are responsible for providing unbiased perspectives on the board's policies.
| Gilbert Avanes | Interim CFO and Treasurer | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Reading International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. For more detail on how to invest in Reading Stock please use our How to Invest in Reading International guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Reading International. If investors know Reading will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Reading International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.29) | Earnings Share (1.88) | Revenue Per Share 9.128 | Quarterly Revenue Growth (0.28) | Return On Assets (0.02) |
The market value of Reading International is measured differently than its book value, which is the value of Reading that is recorded on the company's balance sheet. Investors also form their own opinion of Reading International's value that differs from its market value or its book value, called intrinsic value, which is Reading International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Reading International's market value can be influenced by many factors that don't directly affect Reading International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Reading International's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Reading International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reading International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.