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Reach plc (GB:RCH)
LSE:RCH

Reach plc (RCH) AI Stock Analysis

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Reach plc

(LSE:RCH)

67Neutral
Reach plc's overall stock score reflects its strong valuation and positive corporate events, offset by concerns about declining revenue and bearish technical indicators. The company's financial position is solid with improved profitability, but it faces challenges in revenue growth. The stock appears undervalued, making it potentially attractive despite short-term technical pressures.

Reach plc (RCH) vs. S&P 500 (SPY)

Reach plc Business Overview & Revenue Model

Company DescriptionReach plc is a leading UK-based national and regional news publisher, known for its diverse portfolio of print and digital media brands. The company operates in the media and publishing sector, delivering news, sports, entertainment, and lifestyle content through its well-established titles, including the Daily Mirror, Daily Express, and a host of regional newspapers and digital platforms. Reach plc is committed to providing engaging, quality journalism to a wide audience across the United Kingdom and beyond.
How the Company Makes MoneyReach plc generates revenue primarily through advertising, both in its print publications and digital platforms. The company monetizes its substantial audience base by offering advertisers access to its various media outlets, where they can place display, classified, and native advertisements. Additionally, Reach plc earns income from circulation sales of its print newspapers and magazines, although this revenue stream has been under pressure due to the industry's ongoing digital transformation. The company also explores other commercial opportunities such as events, syndication of content, and partnerships with other media and technology companies to enhance its offering and expand its reach. Significant factors contributing to its earnings include its strong brand recognition, extensive distribution network, and strategic investments in digital innovation to cater to changing consumer preferences.

Reach plc Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
568.60M601.40M615.80M600.20M702.50M
Gross Profit
223.90M225.70M286.40M297.00M331.80M
EBIT
46.10M105.90M128.70M131.30M151.60M
EBITDA
61.40M87.90M93.70M29.00M162.20M
Net Income Common Stockholders
21.50M52.30M2.90M-26.70M94.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.90M40.40M65.70M42.00M20.40M
Total Assets
1.22B1.26B1.34B1.27B1.33B
Total Debt
63.20M46.70M36.20M41.60M0.00
Net Debt
43.30M6.30M-29.50M-400.00K-20.40M
Total Liabilities
582.10M621.50M703.70M707.20M693.40M
Stockholders Equity
637.20M637.50M638.80M566.70M635.20M
Cash FlowFree Cash Flow
-1.00M7.00M73.10M50.70M80.20M
Operating Cash Flow
15.90M20.70M85.60M52.60M84.10M
Investing Cash Flow
-19.30M-30.40M-28.60M-21.80M-4.30M
Financing Cash Flow
-17.10M-15.60M-33.30M-9.20M-78.60M

Reach plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price77.70
Price Trends
50DMA
77.57
Positive
100DMA
80.65
Negative
200DMA
88.63
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
60.11
Neutral
STOCH
82.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCH, the sentiment is Neutral. The current price of 77.7 is above the 20-day moving average (MA) of 72.18, above the 50-day MA of 77.57, and below the 200-day MA of 88.63, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 82.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RCH.

Reach plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBREL
80
Outperform
$72.89B38.2156.34%1.39%2.98%10.10%
GBWPP
73
Outperform
£5.99B11.0415.82%7.09%-0.70%388.07%
72
Outperform
£7.55B17.8610.83%2.08%-3.32%20.38%
GBRCH
67
Neutral
£245.08M4.578.15%9.45%-5.28%148.54%
67
Neutral
£739.14M10.397.06%0.49%-0.09%-29.06%
GBITV
67
Neutral
£2.87B7.4522.70%6.19%-3.75%98.08%
59
Neutral
$13.74B6.91-2.67%3.82%2.33%-34.79%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RCH
Reach plc
77.70
8.10
11.64%
GB:FUTR
Future plc
719.00
71.42
11.03%
GB:PSON
Pearson
1,155.00
191.53
19.88%
GB:REL
RELX plc
3,960.00
724.82
22.40%
GB:WPP
WPP
561.20
-215.99
-27.79%
GB:ITV
ITV plc
77.30
10.28
15.34%

Reach plc Corporate Events

Regulatory Filings and Compliance
Reach plc Announces Change in Major Holdings
Neutral
Apr 25, 2025

Reach plc has announced a change in its major holdings, with Slater Investments reducing its voting rights from 5.02% to 4.93%. This adjustment reflects a minor shift in the ownership structure of Reach plc, potentially impacting its governance and decision-making processes. The change was officially recorded on April 24, 2025, and reported the following day, highlighting the dynamic nature of shareholder positions within the company.

Spark’s Take on GB:RCH Stock

According to Spark, TipRanks’ AI Analyst, GB:RCH is a Neutral.

Reach plc’s overall stock score reflects its strong valuation and positive corporate events, offset by concerns about declining revenue and bearish technical indicators. The company’s financial position is solid with improved profitability, but it faces challenges in revenue growth. The stock appears undervalued, making it potentially attractive despite short-term technical pressures.

To see Spark’s full report on GB:RCH stock, click here.

Regulatory Filings and Compliance
Reach plc CFO Exercises LTIP Awards and Sells Shares
Neutral
Apr 11, 2025

Reach plc, a prominent player in the media industry, has announced a significant transaction involving its Chief Financial Officer, Darren Fisher. On April 10, 2025, Mr. Fisher exercised his Long Term Incentive Plan (LTIP) awards granted in June 2023, resulting in the sale of a portion of the vested shares to cover applicable withholding taxes and other deductions. This transaction, conducted outside a trading venue, highlights the company’s adherence to regulatory requirements under the Market Abuse Regulation and underscores its commitment to transparent financial practices.

Spark’s Take on GB:RCH Stock

According to Spark, TipRanks’ AI Analyst, GB:RCH is a Neutral.

Reach plc’s overall stock score is driven by its strong valuation, with a low P/E ratio and high dividend yield indicating potential undervaluation. Financial performance shows improved profitability and operational efficiency, though declining revenue remains a concern. Technical analysis suggests caution with bearish short-term trends, indicating that while long-term prospects appear promising, short-term performance may be challenging.

To see Spark’s full report on GB:RCH stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Reach plc Grants Long Term Incentive and Restricted Share Awards
Positive
Apr 11, 2025

Reach plc announced the granting of nil-cost options and restricted share awards to its directors under the Long Term Incentive Plan (LTIP) and Restricted Share Plan (RSP). These awards are designed to align the interests of the management with those of the shareholders by tying compensation to performance over a three-year period. The LTIP options will have a two-year post-vesting holding period, while the RSP shares are held in trust during the three-year vesting period, with additional shares potentially awarded to match any dividends paid during this time. This move is expected to strengthen the company’s governance and incentivize its leadership, potentially impacting its market positioning positively.

Spark’s Take on GB:RCH Stock

According to Spark, TipRanks’ AI Analyst, GB:RCH is a Neutral.

Reach plc’s overall stock score is driven by its strong valuation, with a low P/E ratio and high dividend yield indicating potential undervaluation. Financial performance shows improved profitability and operational efficiency, though declining revenue remains a concern. Technical analysis suggests caution with bearish short-term trends, indicating that while long-term prospects appear promising, short-term performance may be challenging.

To see Spark’s full report on GB:RCH stock, click here.

Business Operations and Strategy
Reach plc Strengthens Employee Trust with Share Purchase
Positive
Apr 4, 2025

Reach plc announced that its Employee Benefit Trust (EBT) has acquired 414,174 ordinary shares to manage dilution from share plans, as previously communicated to shareholders. This strategic move supports employee share options and reflects the company’s ongoing commitment to employee benefits, potentially enhancing stakeholder confidence in its operational strategies.

Executive/Board ChangesShareholder Meetings
Reach plc Announces Leadership Changes Ahead of AGM 2025
Neutral
Mar 31, 2025

Reach plc has issued a supplement to its Notice of Annual General Meeting 2025, announcing the appointment of Piers North as the new Chief Executive Officer and director. This change follows the immediate resignation of Jim Mullen from the board. The supplement includes an additional resolution for the appointment of a new director, which will be proposed at the AGM. Shareholders are advised to review the supplement for updated proxy voting instructions to ensure their votes are counted. The company will provide updates on any changes to the AGM arrangements via its website and a Regulatory News Service.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Reach plc Announces Leadership Transition Amid Strong Performance
Positive
Mar 31, 2025

Reach plc has announced a leadership change with Jim Mullen stepping down as Chief Executive, to be succeeded by Piers North, the current Chief Revenue Officer. This transition follows a strong full-year performance and positions the company for future growth, emphasizing its digital evolution and commitment to impactful journalism.

Shareholder MeetingsRegulatory Filings and Compliance
Reach plc Announces 2025 Annual General Meeting Details
Neutral
Mar 26, 2025

Reach plc has announced its Annual General Meeting (AGM) will be held on May 1, 2025, at Deutsche Numis’ offices in London. The notice of the AGM is accessible on the company’s website, and shareholders who opted for paper communications will receive mailed copies. Any changes to the AGM arrangements will be communicated through the company’s website and a Regulatory News Service. This announcement ensures transparency and compliance with UK Financial Conduct Authority regulations, reinforcing Reach plc’s commitment to shareholder engagement and regulatory adherence.

Financial DisclosuresRegulatory Filings and Compliance
Reach plc Releases 2024 Annual Report
Neutral
Mar 18, 2025

Reach plc has published its 2024 Annual Report and Accounts, which are now available on its website and will be distributed to shareholders who opted for paper communications. The report has been submitted to the UK Financial Conduct Authority for public inspection, aligning with regulatory requirements. This release underscores the company’s commitment to transparency and regulatory compliance, potentially impacting its stakeholders by providing insights into its financial health and operational strategies.

Executive/Board Changes
Reach plc Announces Leadership Changes in Remuneration Committee
Neutral
Mar 4, 2025

Reach plc has announced changes in its leadership roles within the Remuneration Committee. Barry Panayi, a Non-Executive Director and member of the committee since October 2021, will become the Chair of the Remuneration Committee starting May 1, 2025, succeeding Olivia Streatfeild. Olivia will continue as a Non-Executive Director and remain on the Board and its Committees. Additionally, Denise Jagger will take over as Colleague Ambassador, a position previously held by Olivia since March 2019. These changes reflect a strategic shift in leadership roles within the company, potentially impacting its governance and stakeholder engagement.

DividendsBusiness Operations and StrategyFinancial Disclosures
Reach plc Reports Strong 2024 Financial Performance with Digital Growth
Positive
Mar 4, 2025

Reach plc reported a strong financial performance for the year ending December 31, 2024, with digital revenue returning to growth and operating profit exceeding market expectations. The company’s Customer Value Strategy and cost management efforts contributed to improved profitability, despite a 5.3% decline in overall revenue. Digital advertising yields grew by 19%, and data-driven digital revenues increased by 6.8%, now comprising 45% of total digital revenues. The print business showed resilience, with print revenue outperforming volume trends, and the company maintained a total dividend of 7.34p per share. Reach plc is optimistic about 2025, focusing on its Customer Value Strategy and cost optimization to navigate the uncertain macro environment.

Business Operations and StrategyFinancial Disclosures
Reach plc Reports Strong 2024 Performance with Digital Growth
Positive
Mar 4, 2025

Reach plc reported a strong financial performance for the year ending December 31, 2024, with digital revenue returning to growth, driven by their Customer Value Strategy and diversification into affiliates and ecommerce. The company saw a 6.0% increase in adjusted operating profit, surpassing market expectations, and maintained a strong cash flow. Despite a 5.3% decline in overall revenue, the digital segment grew by 2.1%, and the company effectively managed operating costs with a 6.5% reduction. Reach plc’s strategic focus on digital engagement and cost management has positioned it well for future growth, despite challenges in the print segment.

Financial Disclosures
Reach plc to Release 2024 Financial Results in March 2025
Positive
Feb 19, 2025

Reach plc has announced that it will release its preliminary financial results for the year ending 31 December 2024 on 4 March 2025. The announcement will be followed by a presentation from the CEO and CFO, aimed at investors and analysts, which will be available via live webcast and conference call. This event signals transparency and engagement with stakeholders, potentially impacting investor confidence and market perception positively.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.