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On The Beach Group PLC (GB:OTB)
LSE:OTB

On The Beach (OTB) AI Stock Analysis

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GB:OTB

On The Beach

(LSE:OTB)

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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
168.00 p
â–¼(-25.50% Downside)
Action:ReiteratedDate:01/04/26
The score is primarily supported by a conservative balance sheet and improved profitability, but is held back by weaker cash-flow durability (zero free cash flow in 2025) and a high P/E valuation. Technical indicators are neutral and do not materially strengthen the outlook.

On The Beach (OTB) vs. iShares MSCI United Kingdom ETF (EWC)

On The Beach Business Overview & Revenue Model

Company DescriptionOn The Beach (OTB) is a leading online travel agency based in the United Kingdom, specializing in beach holidays and travel packages. The company operates primarily in the leisure travel sector, offering a wide range of products and services, including hotel bookings, flight reservations, and package holidays to various beach destinations. OTB caters to both budget and luxury travelers, providing tailored experiences to meet diverse customer needs.
How the Company Makes MoneyOTB makes money mainly by retailing holidays to consumers and earning margin on each booking. Its core revenue stream comes from selling package holidays that combine flights with accommodation (and often transfers and other components), where OTB contracts with and sources inventory from third-party suppliers (such as airlines, hotels, and bedbanks) and sells assembled packages to customers at a marked-up price; the difference between what it pays suppliers and what the customer pays (after accounting for any incentives/commissions) contributes to gross profit. The company also generates revenue from ancillary travel products and services sold alongside the core holiday, such as baggage, seat selection, transfers, travel insurance, and other add-ons, typically earning either commission from the third-party provider and/or incremental margin embedded in the sale price. Additional earnings can arise from supplier-funded incentives or marketing support and from financial income associated with the timing of customer payments versus supplier payments (working-capital/float dynamics), though the extent and structure of these items depends on disclosed reporting periods and is not always separately itemized. Key factors that influence earnings include holiday volumes (bookings), average selling price and margin per booking, attach rates of ancillaries, online marketing efficiency (as customer acquisition costs affect profitability), and the availability and pricing of third-party flight and hotel inventory. Specific named partnerships, commission rates, or supplier incentive terms: null.

On The Beach Financial Statement Overview

Summary
Strong balance sheet with very low leverage and a clear profitability recovery post-2021 support the score. This is offset by mixed cash-flow quality—free cash flow fell to zero in 2025—and some revenue/margin variability in 2024–2025.
Income Statement
76
Positive
Profitability has materially improved versus the 2020–2021 loss-making period, with strong margins in the last three annual reports (2023–2025), including healthy EBIT and EBITDA margins and a return to consistent net profits. Revenue has also grown well in 2023 and 2025, though 2024 growth was essentially flat and 2025 revenue dipped slightly versus 2024, suggesting some demand/volume volatility. Net margin softened in 2025 versus 2024, which is a modest negative despite still-solid profitability.
Balance Sheet
88
Very Positive
The balance sheet looks very conservative with extremely low leverage across the period (debt-to-equity consistently around ~1–3%), which provides resilience in a cyclical travel environment. Equity levels remain sizable, and returns on equity have recovered from deeply negative levels in 2020–2021 to positive mid-single-digit levels in 2023–2025. The main weakness is that profitability (and therefore returns) is still not consistently high enough to be considered best-in-class, and equity declined from 2024 to 2025.
Cash Flow
52
Neutral
Cash generation is mixed. Operating cash flow is positive and strong in 2022 and 2025 and remained positive in 2023–2024, indicating the core business can produce cash. However, free cash flow dropped to zero in 2025 after being positive in 2022–2024, and free cash flow growth has been negative in recent years, pointing to higher investment or working-capital drag. The earlier period also shows elevated volatility (including a very weak 2020), which lowers confidence in consistency.
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

On The Beach Technical Analysis

Technical Analysis Sentiment
Negative
Last Price225.50
Price Trends
50DMA
198.87
Negative
100DMA
204.72
Negative
200DMA
231.96
Negative
Market Momentum
MACD
-11.18
Positive
RSI
28.31
Positive
STOCH
8.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:OTB, the sentiment is Negative. The current price of 225.5 is above the 20-day moving average (MA) of 183.48, above the 50-day MA of 198.87, and below the 200-day MA of 231.96, indicating a bearish trend. The MACD of -11.18 indicates Positive momentum. The RSI at 28.31 is Positive, neither overbought nor oversold. The STOCH value of 8.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:OTB.

On The Beach Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
―――――――
75
Outperform
£1.96B1.1823.98%1.18%7.17%-2.22%
69
Neutral
£126.38M47.1310.90%0.60%-3.82%-51.23%
66
Neutral
£1.52B8.306.46%―3.87%18.31%
64
Neutral
£227.50M40.515.43%1.39%-5.30%-30.17%
56
Neutral
£663.15M8.84-113.93%1.40%3.94%―
48
Neutral
£1.34B-26.58-59.21%2.50%5.98%-371.14%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:OTB
On The Beach
157.00
-81.75
-34.24%
GB:JET2
Jet2 PLC
1,069.00
-267.18
-20.00%
GB:HSW
Hostelworld
102.00
-25.22
-19.82%
GB:MAB
Mitchells & Butlers
256.00
36.50
16.63%
GB:SSPG
SSP Group plc
171.70
23.72
16.03%
GB:MOON
Moonpig Group Plc
214.00
16.97
8.62%

On The Beach Corporate Events

Business Operations and StrategyExecutive/Board Changes
On the Beach CMO Zoe Harris to Step Down in May 2026
Neutral
Mar 20, 2026

On the Beach Group has announced that Chief Marketing Officer and Board director Zoe Harris will step down to take a role elsewhere, remaining with the company until 8 May 2026 to support an orderly handover. Chief executive Shaun Morton praised Harris for broadening the group’s marketing strategy and delivering high-performing campaigns since 2021, underscoring her impact on brand development as the online holiday specialist continues to expand its offering across beach, city and cruise holidays.

The departure comes as On the Beach leverages its technology-led, asset-light model to grow profitably, suggesting that while a key member of the leadership team is exiting, the company expects continuity in its strategic direction. Harris’s exit may prompt renewed focus on marketing leadership as the group seeks to maintain momentum in customer acquisition and loyalty in a competitive travel market, particularly as it broadens its geographical reach and product range.

The most recent analyst rating on (GB:OTB) stock is a Hold with a £171.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
On the Beach Chief People Officer Sells Shares After Option Exercise
Neutral
Mar 20, 2026

On the Beach Group plc reported that its Chief People Officer, Jennie Cronin, has exercised options over 103,960 ordinary shares under the company’s Long Term Incentive Plan. The options were exercised at nil cost and all resulting shares were subsequently sold on 20 March 2026 on the London Stock Exchange at a price of 160.34 pence per share, reflecting routine executive share-based remuneration activity.

The transaction underscores the ongoing use of equity incentives within the company’s senior management compensation structure, aligning leadership rewards with shareholder value creation. While this is a standard PDMR dealing disclosure, it provides investors with transparency over insider share movements and confirms continued operation of the group’s long-term incentive arrangements.

The most recent analyst rating on (GB:OTB) stock is a Hold with a £171.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
On the Beach CMO Exercises LTIP Options and Sells Shares to Cover Tax
Neutral
Mar 18, 2026

On the Beach Group plc has disclosed that chief marketing officer Zoe Harris has exercised 423,960 vested nil-cost share options under the company’s Long Term Incentive Plan. She sold 200,269 of the resulting ordinary shares on the London Stock Exchange at an average price of 162.30p to satisfy the associated tax liabilities.

Following these transactions, Harris retained 223,691 shares, aligning her interests more closely with those of shareholders while complying with regulatory disclosure requirements for senior executives. The move underscores ongoing use of equity-based incentives at the online holiday retailer, a common practice in the UK travel and e-commerce sectors to attract and retain key leadership talent.

The most recent analyst rating on (GB:OTB) stock is a Hold with a £177.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Business Operations and StrategyStock BuybackDividendsShareholder Meetings
On the Beach wins full shareholder backing at 2026 AGM
Positive
Mar 12, 2026

On the Beach Group plc reported that all resolutions at its Annual General Meeting on 12 March 2026 were approved by shareholders via a poll vote. Investors backed the receipt of accounts, the directors’ remuneration report, the final dividend and the reappointment of all board members and the external auditor, Ernst & Young LLP.

Shareholders also authorised the board to allot shares, make limited political donations, amend the 2023 long-term incentive plan and disapply pre-emption rights, alongside approving share buybacks and shorter notice periods for general meetings. The strong support across both ordinary and special resolutions reinforces the board’s authority on capital management and governance matters, signalling shareholder confidence in the company’s current strategy and leadership.

The most recent analyst rating on (GB:OTB) stock is a Hold with a £205.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
On the Beach Extends Growth But Halts Profit Guidance Amid Middle East Turmoil
Negative
Mar 12, 2026

On the Beach reported that strong trading momentum from its record FY25 has carried into FY26, with overall bookings up 10%, repeat customer bookings up 19% and a sharp rise in app usage, where bookings grew 58% to represent 38% of total sales. The group is accelerating its technology-led expansion into city breaks, cruises and the Republic of Ireland market, doubling city booking volumes year on year and leveraging flexible, low-cost operations to capitalise on later booking patterns.

Despite this operational progress, the onset of conflict in the Middle East has triggered a significant slowdown in demand for key destinations such as Turkey, Greece, Cyprus and Egypt, prompting the company to suspend its full-year profit guidance. Management emphasised that the asset-light model, with no committed inventory and lower fixed costs, is helping the group remain profitable and cash generative, while the board reiterated confidence in its medium-term financial ambitions despite near-term uncertainty.

The most recent analyst rating on (GB:OTB) stock is a Hold with a £204.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Other
On the Beach executives purchase shares under incentive plan
Positive
Feb 23, 2026

On the Beach Group has disclosed a series of small share purchases by senior executives under the company’s share incentive plan. General Counsel and Company Secretary Kirsteen Vickerstaff acquired 50 ordinary shares at 200.61p each, while Chief Strategy Officer Adam Hansen and Chief People Officer Jennie Cronin each bought 74 shares at the same price, with all trades executed on 20 February 2026 on the London Stock Exchange.

The transactions, though modest in size, indicate continued participation by key management in the group’s equity-based incentive arrangements. Such purchases are closely watched by investors as a signal of management’s alignment with shareholder interests and confidence in the company’s prospects, even when the volumes involved are relatively limited.

The most recent analyst rating on (GB:OTB) stock is a Hold with a £204.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
On the Beach publishes 2025 report and sets March AGM
Neutral
Feb 10, 2026

On the Beach Group plc has published its Annual Report and Accounts for the year ended 30 September 2025, alongside the notice of its upcoming Annual General Meeting. Shareholders who opted for postal communication have received hard copies, while others have been informed that the documents are available online and via the UK regulator’s National Storage Mechanism.

The AGM is scheduled for 11am on 12 March 2026 at the company’s Manchester head office, giving investors an opportunity to review performance and governance matters set out in the newly released report. The publication and meeting notice mark a key point in On the Beach’s corporate calendar, reinforcing its disclosure obligations and enabling shareholder engagement on its recent financial year.

The most recent analyst rating on (GB:OTB) stock is a Buy with a £330.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

DividendsShareholder Meetings
On the Beach Confirms Timetable for 2025 Final Dividend
Positive
Feb 4, 2026

On the Beach Group plc has confirmed the timetable for its recommended final dividend of 3.0 pence per share for the 2025 financial year, following its earlier final results announcement. Shareholders are set to vote on the payout at the Annual General Meeting on 12 March 2026, with the shares trading ex-dividend from 5 February, a record date of 6 February, and payment scheduled for 19 March 2026, underlining the group’s continued focus on returning cash to investors alongside its growth strategy.

The most recent analyst rating on (GB:OTB) stock is a Buy with a £330.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Other
On the Beach Executives Increase Holdings Through Share Incentive Plan Purchases
Positive
Jan 22, 2026

On the Beach Group plc has disclosed that three senior executives – General Counsel and Company Secretary Kirsteen Vickerstaff, Chief Strategy Officer Adam Hansen and Chief People Officer Jennie Cronin – have each purchased ordinary shares in the company under its share incentive plan. The transactions, executed on 20 January 2026 on the London Stock Exchange at a price of 213.199p per share, involved relatively small volumes but signal continued managerial participation in the company’s equity-based remuneration structure, aligning leadership interests more closely with those of shareholders.

The most recent analyst rating on (GB:OTB) stock is a Buy with a £330.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Other
On the Beach Executives Boost Holdings Through Share Incentive Plan Purchases
Positive
Dec 23, 2025

On the Beach Group plc has disclosed a series of small share purchases by senior executives under the company’s Share Incentive Plan, signalling ongoing insider participation in the equity. General Counsel and Company Secretary Kirsteen Vickerstaff, Chief Strategy Officer Adam Hansen and Chief People Officer Jennie Cronin each acquired ordinary shares at 227.5p on 22 December 2025 via the London Stock Exchange, a routine transaction that modestly increases their personal stakes and underscores alignment between the management team and shareholders.

The most recent analyst rating on (GB:OTB) stock is a Buy with a £305.00 price target. To see the full list of analyst forecasts on On The Beach stock, see the GB:OTB Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 04, 2026