Bedrijfsoverzicht
Reading International, Inc. is a specialized entity focused on the ownership, development, and operation of entertainment and real property assets across the United States, Australia, and New Zealand. The company operates within the Communication Services sector, specifically in the Entertainment industry, positioning itself as a hybrid player that combines cinema exhibition with real estate management. This dual-segment approach allows the firm to leverage tangible assets while maintaining direct exposure to consumer entertainment demand. With a market capitalization of $216.97M and annual revenue of $202.99M, the company represents a mid-sized capitalization entity in the broader media landscape. Although the specific employee count is not disclosed, the scale of its operations implies a significant physical footprint required to manage cinema exhibition venues and real estate portfolios. These financial figures indicate a company that generates substantial top-line revenue but operates with a capital structure that warrants close examination regarding its profitability efficiency and asset utilization.
Financiële gezondheid
The company reported a revenue of $202.99M for the trailing twelve months, yet it simultaneously recorded a net income of -$14.14M and an EBITDA of $9.05M. This substantial gap between revenue and net income reveals a heavy cost structure where operating expenses and interest obligations consume the majority of earnings before taxes and interest are even fully accounted for in the bottom line calculation. Despite the negative net income, the generation of $63.01M in free cash flow demonstrates a notable divergence between accounting profit and actual cash generation, suggesting strong operational cash collection capabilities. The gross margin stands at 13.4%, while the operating margin is -1.9% and the profit margin is -7.0%, indicating that the company is currently losing money on every dollar of sales after covering all operating costs. With cash reserves of $10.91M against total debt of $361.02M, the balance sheet is heavily leveraged, presenting a significant liability burden relative to liquid assets. The debt-to-equity ratio is not explicitly quantified due to the lack of positive equity, but the disparity between cash and debt highlights a conservative cash position relative to obligations. The current ratio of 0.17 further underscores a constrained short-term liquidity environment, indicating that current liabilities significantly exceed current assets. Return on Equity is not applicable given the negative equity position, and the return on assets stands at -0.7%, reflecting that the company's assets are currently generating negative returns for the entity.
Waarderingsbeoordeling
The trailing twelve-month P/E ratio is not applicable, and the forward P/E ratio is also not available, which prevents a traditional earnings-based valuation comparison. The absence of these metrics is consistent with the reported net losses, as price-to-earnings multiples cannot be calculated when earnings are negative. However, the price-to-book ratio is listed at -11.89, a figure that technically indicates the market values the company at a negative multiple of its book value, often seen in distressed or turnaround situations where liabilities exceed assets on a book basis. Alternatively, investors may rely on the price-to-sales ratio of 1.07 and the EV/EBITDA of 62.70 to gauge the company's relative value against peers. The 52-week high is $17.40 and the 52-week low is $7.61, providing a clear trading range over the last year. The current price sits somewhere within this range, though without the exact current share price provided in the source data, the precise percentage below the high cannot be calculated, yet the proximity to the low suggests significant downside volatility over the period. The beta value is 0.87, indicating that the stock's price volatility is slightly lower than the broader market, suggesting it is less sensitive to general market fluctuations. The high EV/EBITDA of 62.70 suggests that the market is pricing in significant future growth expectations or is compensating for the high leverage and current losses.
Growth & Income
The revenue growth year-over-year is -14.2%, while earnings growth is not applicable due to the negative earnings baseline. The decline in revenue indicates a contraction in the company's top-line business, likely driven by reduced cinema attendance or real estate leasing challenges. Since earnings growth cannot be meaningfully compared to revenue growth in a loss-making environment, the primary concern remains the revenue contraction itself. Regarding income, the dividend yield is not applicable, and the payout ratio is 0.0%, confirming that the company does not distribute dividends to shareholders. This lack of dividend payments is a logical necessity given the negative net income, as the company must retain all cash flow to service its debt and maintain operations. Consequently, the company reinvests any generated free cash flow into its core business segments rather than returning capital to investors through dividends. The overall growth and income profile is characterized by revenue contraction and a complete reliance on equity financing or cash flow retention rather than income distribution.