Reach plc (RCH) AI Stock Analysis

• Market Cap: £237.33M
• Dividend Yield: 721.64%
• Average Volume (3M): 668.42K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.85
• Revenue Growth: -5.28%
• EPS Growth: 148.54%
• Country: UK
• Employees: 3,566
• Sector: Communication Services
• Sector Strength: 87
• Industry: Publishing
• EPS (TTM): 0.09
• Shares Outstanding: 318,336,300
• 10 Day Avg. Volume: 424,081
• 30 Day Avg. Volume: 668,418
• PEG Ratio: 0.14
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.70
• 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: 5.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: 79.00p ▲(5.05%Upside)

Reach plc's overall stock score is influenced by its solid financial position and attractive valuation. While technical analysis indicates potential weakness, the company's recent corporate events and high dividend yield provide positive signals for long-term investors.

Reach plc Business Overview & Revenue Model

Company Description

Reach plc operates as a national and regional news publisher in the United Kingdom and Ireland. The company has various national and regional brands across print and online, including HullLive, DerbyshireLive, belfastlive, BristoLive, football.london, Devon Live, TeessideLive, edinburghlive, Mylondon, Corkbeo, Dailystar, Mirror, Daily Express, Daily Record, ChronicleLive, OK!, ECHO, LeicestershireLive, Manchester Evening News, and BirminghamLive. It is also involved in the publishing and digital classified recruitment business. The company was formerly known as Trinity Mirror plc and changed its name to Reach plc in May 2018. Reach plc was incorporated in 1904 and is headquartered in London, the United Kingdom.

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 shows a moderately strong financial profile with improved profitability and operational efficiency. However, declining revenue and inconsistent cash flows highlight the need for better cash generation 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: 75.20
• 50DMA: Positive
• 100DMA: Positive
• 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 75.2 is above the 20-day moving average (MA) of 74.03, above the 50-day MA of 73.72, and below the 200-day MA of 77.50, indicating a neutral trend. The MACD of 0.72 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 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	73 Outperform	£194.86M	23.65	12.42%	―	―	―
RCH	67 Neutral	£237.33M	4.42	8.15%	721.64%	-5.28%	148.54%
SAA	67 Neutral	£221.81M	17.60	33.95%	78.03%	-12.89%	―
Sector *	62 Neutral	$41.89B	-1.63	-12.07%	3.43%	2.03%	-69.89%
TIG	61 Neutral	£155.75M	8.84	-14.10%	4.63%	-6.63%	-177.14%
CAU	60 Neutral	£47.82M	9.61	-24.72%	498.84%	-5.93%	―
TMO	50 Neutral	£60.76M	―	-24.18%	―	-1.82%	67.47%

Reach plc Corporate Events

Reach plc to Announce Interim Financial Results for H1 2025

Reach plc has announced that it will release its interim financial results for the first half of 2025 on July 24. The company will host a presentation for investors and analysts, which will be accessible both in person and via a live webcast. This announcement indicates Reach plc’s commitment to transparency and engagement with its stakeholders, providing insights into its financial performance and strategic direction.

The most recent analyst rating on (GB:RCH) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Reach plc stock, see the GB:RCH Stock Forecast page.

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.