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On The Beach
(LSE:OTB)
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Rating:64Neutral
Price Target:
187.00 p
▲(41.67% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by solid financial performance (strong post-downturn profitability and exceptionally low leverage), partly offset by weaker cash-flow consistency (FCF dropping to zero in 2025). Technicals significantly weigh on the rating due to a pronounced downtrend, while valuation is broadly reasonable with a mid P/E and moderate yield.
Positive Factors
Conservative balance sheet / low leverage
Extremely low leverage provides durable financial resilience in a cyclical travel industry. With debt-to-equity near 1–3%, the company has capacity to absorb demand shocks, preserve operations in downturns, and selectively invest or pursue M&A without immediate refinancing risk.
Negative Factors
Free cash flow fell to zero in 2025
A collapse of free cash flow to zero signals weaker absolute cash available after investments and working-capital needs. Persistently volatile FCF reduces discretionary capital for product development, marketing, or returns to shareholders, and raises funding risk if adverse trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Extremely low leverage provides durable financial resilience in a cyclical travel industry. With debt-to-equity near 1–3%, the company has capacity to absorb demand shocks, preserve operations in downturns, and selectively invest or pursue M&A without immediate refinancing risk.
Read all positive factors
On The Beach (OTB) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£252.87M
Dividend Yield1.39%
Average Volume (3M)955.60K
Price to Earnings (P/E)86.5
Beta (1Y)0.99
Revenue Growth-1.97%
EPS Growth-77.68%
CountryUK
Employees505
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding144,171,310
10 Day Avg. Volume815,518
30 Day Avg. Volume955,600
Financial Highlights & Ratios
PEG Ratio-1.36
Price to Book (P/B)2.22
Price to Sales (P/S)2.87
P/FCF Ratio14.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£266.80Price Target Upside102.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.13
Revenue Forecast (FY)£114.33M
On The Beach Business Overview & Revenue Model
Company Description
On the Beach Group plc operates as an online retailer of short haul beach holidays under the On the Beach brand in the United Kingdom and Republic of Ireland. The company provides its services through onthebeach.co.uk, sunshine.co.uk, and www.onth...
How the Company Makes Money
OTB primarily makes money by selling holidays to consumers and earning margin on each booking. Its core revenue stream comes from package holiday sales where it combines travel components (typically flights and hotels, and sometimes transfers or o...
On The Beach Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 109.40M | 121.40M | 128.20M | 112.10M | 143.40M | 21.20M |
| Gross Profit | 94.20M | 108.70M | 121.70M | 100.70M | 82.10M | 2.50M |
| EBITDA | 39.70M | 43.20M | 44.00M | 30.90M | 19.00M | -23.30M |
| Net Income | 3.40M | 8.60M | 13.00M | 10.10M | 1.60M | -30.20M |
Balance Sheet | ||||||
| Total Assets | 610.90M | 502.10M | 495.90M | 435.20M | 346.90M | 276.70M |
| Cash, Cash Equivalents and Short-Term Investments | 209.60M | 234.10M | 96.20M | 75.80M | 64.50M | 56.00M |
| Total Debt | 30.20M | 2.20M | 2.80M | 4.50M | 3.90M | 2.90M |
| Total Liabilities | 484.30M | 345.30M | 313.40M | 267.00M | 190.10M | 126.80M |
| Stockholders Equity | 126.60M | 156.80M | 182.50M | 168.20M | 156.80M | 149.90M |
Cash Flow | ||||||
| Free Cash Flow | -12.80M | 24.40M | 16.60M | 21.90M | 39.60M | 8.50M |
| Operating Cash Flow | 39.80M | 43.40M | 26.90M | 22.00M | 52.00M | 13.60M |
| Investing Cash Flow | -10.50M | -7.80M | -2.60M | -7.90M | -12.10M | -5.00M |
| Financing Cash Flow | -54.60M | -37.20M | -5.60M | -2.80M | -700.00K | 23.30M |
On The Beach Technical Analysis
Positive
132.00
Price Trends
158.23
Positive
170.22
Positive
192.67
Negative
Market Momentum
6.00
Negative
63.55
Neutral
61.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:OTB, the sentiment is Positive. The current price of 132 is below the 20-day moving average (MA) of 161.03, below the 50-day MA of 158.23, and below the 200-day MA of 192.67, indicating a neutral trend. The MACD of 6.00 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 61.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:OTB.
On The Beach Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £2.44B | 5.83 | 24.73% | 1.18% | 7.17% | -2.22% | |
65 Neutral | £1.46B | 7.90 | 6.41% | ― | 2.96% | 9.30% | |
65 Neutral | £700.96M | 14.88 | -113.93% | 1.40% | 6.54% | ― | |
64 Neutral | £252.87M | 86.50 | 2.40% | 1.39% | -1.97% | -77.68% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £138.10M | 22.78 | 9.72% | 0.60% | 3.16% | -21.30% | |
50 Neutral | £1.47B | -51.86 | -65.76% | 2.50% | 4.58% | -24.15% |
* Consumer Cyclical Sector Average
GB:OTB
On The Beach
175.60
-113.80
-39.32%
GB:JET2
Jet2 PLC
1,340.00
-483.42
-26.51%
GB:HSW
Hostelworld
110.50
-23.98
-17.83%
GB:MAB
Mitchells & Butlers
245.00
-41.50
-14.49%
GB:SSPG
SSP Group plc
189.30
21.20
12.61%
GB:MOON
Moonpig Group Plc
239.20
17.54
7.92%
On The Beach Corporate Events
Stock BuybackRegulatory Filings and Compliance
On the Beach cancels 160,000 shares in ongoing buyback
Positive
Jun 29, 2026
On the Beach Group PLC has continued its recently announced share buyback programme, repurchasing and cancelling 160,591 ordinary shares between 22 and 26 June 2026 at a volume-weighted average price of 168.63 pence. Following these transactions, ...
Stock BuybackRegulatory Filings and Compliance
On the Beach Cuts Share Count with June Buybacks
Positive
Jun 29, 2026
On the Beach Group PLC has continued executing its previously announced share buyback programme, repurchasing 160,591 ordinary shares between 22 and 26 June 2026 via Peel Hunt on the London Stock Exchange at a volume-weighted average price of 168....
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
On the Beach Cuts Share Count with Ongoing Buyback Programme
Positive
Jun 22, 2026
On the Beach Group PLC has continued executing its previously announced share buyback programme, repurchasing 282,022 ordinary shares for cancellation between 15 June and 19 June 2026 at prices around 170 pence per share. Following these transacti...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
On the Beach Cuts Share Count with Latest Buyback Tranche
Positive
Jun 15, 2026
On the Beach Group has continued execution of its recently announced share buyback, repurchasing 291,171 ordinary shares for cancellation on the London Stock Exchange between 8 and 12 June 2026 through broker Peel Hunt. The purchases were made at ...
Business Operations and StrategyStock BuybackDividends
On the Beach launches £10m share buyback as it steps up cash returns
Positive
Jun 8, 2026
On the Beach Group plc, the UK-listed online beach holiday specialist, has reaffirmed its asset-light, consumer-focused model, highlighting a strategy that balances reinvestment for organic growth with regular returns of surplus cash to shareholde...
Regulatory Filings and Compliance
On the Beach CSO shifts shareholdings into ISAs in disclosed insider trades
Neutral
May 28, 2026
On the Beach Group has disclosed share dealings by chief strategy officer Adam Hansen and his spouse Rebecca Hansen, as required under UK market abuse regulations. The transactions involved a so-called “Bed and ISA” arrangement in whic...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
On the Beach executives exercise LTIP options and retain full share allocations
Positive
May 22, 2026
On the Beach Group plc has disclosed that founder and non-executive director Simon Cooper and chief strategy officer Adam Hansen have exercised vested nil-cost options awarded under the company’s Long Term Incentive Plan and retained all res...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
On the Beach Delivers Record Bookings but Lower Profits as Geopolitical Headwinds Hit Margins
Neutral
May 12, 2026
On the Beach reported record first-half booking volumes of 324,000, up 7% and ahead of the broader market, with total transaction value rising 2% despite significant industry headwinds and demand disruption from the conflict in the Middle East. Tr...
Business Operations and StrategyRegulatory Filings and Compliance
On the Beach executives boost holdings through share incentive plan purchases
Positive
Apr 22, 2026
On the Beach Group plc has disclosed that several senior executives, including Chief Executive Officer Shaun Morton, Chief People Officer Jennie Cronin, General Counsel and Company Secretary Kirsteen Vickerstaff, and Chief Strategy Officer Adam Ha...
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.