Reach plc (RCH) AI Stock Analysis

• Market Cap: £227.23M
• Dividend Yield: 9.18%
• Average Volume (3M): 670.61K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.73
• Revenue Growth: -5.28%
• EPS Growth: 148.54%
• Country: UK
• Employees: 3,566
• Sector: Communication Services
• Sector Strength: 90
• Industry: Publishing
• EPS (TTM): 0.17
• Shares Outstanding: 318,336,300
• 10 Day Avg. Volume: 730,351
• 30 Day Avg. Volume: 670,613
• PEG Ratio: <0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £79.00
• Price Target Upside: 9.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: 77.00p ▲(6.94%Upside)

Reach plc's overall stock score reflects strong valuation and positive corporate governance initiatives, offset by weaker technical indicators and financial performance concerns. The company's low P/E ratio and high dividend yield are significant strengths, while revenue decline and inconsistent cash flows remain key risks.

Reach plc Business Overview & Revenue Model

Company Description

Reach plc is a leading British newspaper, magazine, and digital publisher, known for its extensive portfolio of print and online media. The company operates in the publishing sector, delivering compelling content across national and regional publications. Notable titles include the Daily Mirror, Daily Express, and a variety of regional newspapers and digital platforms. Reach plc aims to provide news, entertainment, and information to a diverse audience across the UK.

How the Company Makes Money

Reach plc generates revenue primarily through the sale of advertising space across its print and digital media platforms. The company capitalizes on its large audience base and wide reach to attract advertisers looking to engage with specific demographics. In addition to advertising, Reach plc earns income from the circulation and subscriptions of its print publications. The company also benefits from digital subscriptions and partnerships that enhance its content distribution and monetization strategies. Key revenue streams include print advertising, digital advertising, subscription fees, and sale of publications, with digital transformation playing a significant role in its business model.

Reach plc Financial Statement Overview

Summary

Reach plc has a moderately strong financial profile with improved profitability and operational efficiency, although facing declining revenue. The balance sheet is solid with low leverage and strong equity. Cash flows have turned positive but show inconsistency, necessitating better cash management strategies.

Income Statement

Reach plc's income statement reflects a mixed performance. The gross profit margin has declined from previous years as revenue has decreased while costs have increased slightly. The net profit margin improved significantly in 2024 due to a substantial increase in net income, though revenue growth has been negative over the recent periods. While EBIT and EBITDA margins have improved, indicating better operational efficiency, declining revenue is a concern.

Balance Sheet

The balance sheet shows a stable financial position with a solid equity base and a manageable debt level. The debt-to-equity ratio is low, suggesting conservative leverage. The equity ratio is healthy, indicating a strong equity position relative to total assets. Return on equity improved significantly in 2024, showcasing better profitability and shareholder returns, though it remains sensitive to potential revenue fluctuations.

Cash Flow

Cash flow analysis highlights some strengths and weaknesses. Free cash flow turned positive in 2024 after a negative performance in the previous year, indicating better cash management. Operating cash flow to net income ratio suggests cash generation is adequate, but the free cash flow growth rate has been inconsistent. The reliance on financing activities and past negative free cash flows pose potential risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	538.60M	568.60M	601.40M	615.80M	600.20M
Gross Profit	235.20M	223.90M	225.70M	286.40M	297.00M
EBITDA	90.60M	61.40M	87.90M	93.70M	29.00M
Net Income	53.60M	21.50M	52.30M	2.90M	-26.70M
Balance Sheet
Total Assets	1.21B	1.22B	1.26B	1.34B	1.27B
Cash, Cash Equivalents and Short-Term Investments	22.70M	19.90M	40.40M	65.70M	42.00M
Total Debt	62.30M	63.20M	46.70M	36.20M	41.60M
Total Liabilities	530.90M	582.10M	621.50M	703.70M	707.20M
Stockholders Equity	678.60M	637.20M	637.50M	638.80M	566.70M
Cash Flow
Free Cash Flow	14.20M	-1.00M	7.00M	73.10M	50.70M
Operating Cash Flow	26.00M	15.90M	20.70M	85.60M	52.60M
Investing Cash Flow	4.90M	-19.30M	-30.40M	-28.60M	-21.80M
Financing Cash Flow	-30.00M	-17.10M	-15.60M	-33.30M	-9.20M

Reach plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCH, the sentiment is Positive. The current price of 72 is below the 20-day moving average (MA) of 72.16, below the 50-day MA of 73.13, and below the 200-day MA of 78.97, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 40.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RCH.

Reach plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LBG	75 Outperform	£208.24M	25.28	12.42%	―	―	―
SAA	67 Neutral	£236.36M	18.75	33.95%	0.73%	-12.89%	―
Sector *	66 Neutral	£1.91B	10.32	-3.58%	3.20%	3.34%	-85.67%
RCH	65 Neutral	£227.23M	4.24	8.15%	9.18%	-5.28%	148.54%
TIG	61 Neutral	£151.91M	8.84	-14.10%	4.75%	-6.63%	-177.14%
CAU	60 Neutral	£47.82M	9.61	-24.72%	5.41%	-5.93%	―
TMO	50 Neutral	£69.69M	―	-24.18%	―	-1.82%	67.47%

Reach plc Corporate Events

Reach plc AGM Results and Leadership Changes

At its recent Annual General Meeting, Reach plc successfully passed most of its proposed resolutions, including the re-election of several board members and the appointment of Piers North as the new Chief Executive Officer. The meeting also saw the withdrawal of a resolution related to the former CEO, Jim Mullen, who stepped down from his role. These changes are expected to influence the company’s strategic direction and leadership dynamics, potentially impacting its market positioning and stakeholder relationships.

Reach plc Updates Total Voting Rights

Reach plc has announced an update regarding its total voting rights as of April 30, 2025. The company’s issued share capital consists of 322,085,269 ordinary shares, with 3,748,968 held in treasury. Consequently, the total number of voting rights available to shareholders is 318,336,301. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules.

Reach plc Announces Change in Major Holdings

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.

Reach plc CFO Exercises LTIP Awards and Sells Shares

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.

Reach plc Grants Long Term Incentive and Restricted Share Awards

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.

Reach plc Strengthens Employee Trust with Share Purchase

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.