Reach plc (RCH) AI Stock Analysis

• Market Cap: £225.65M
• Dividend Yield: 7.61%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.93
• Revenue Growth: -4.44%
• EPS Growth: 19.95%
• Country: UK
• Employees: 3,566
• Sector: Communication Services
• Sector Strength: 93
• Industry: Publishing
• EPS (TTM): 0.11
• Shares Outstanding: 318,336,300
• 10 Day Avg. Volume: 1,934,460
• 30 Day Avg. Volume: 1,167,617
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £81.00
• Price Target Upside: 13.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: 81.00p ▲(13.29% Upside)

Reach plc's overall score reflects strong valuation metrics with a low P/E ratio and high dividend yield, indicating potential undervaluation. Financial performance shows improved profitability, yet declining revenue and inconsistent cash flows are areas of concern. Technical analysis indicates a stable, neutral market position.

Reach plc Business Overview & Revenue Model

Company Description

Reach plc is a leading UK-based media company that operates across various sectors, primarily focusing on publishing and digital media. The company owns and manages a diverse portfolio of newspapers, magazines, and digital platforms, including well-known titles such as the Daily Mirror, the Daily Express, and OK! magazine. Reach plc has a strong presence in both print and online media, delivering news, entertainment, and lifestyle content to millions of readers.

How the Company Makes Money

Reach plc generates revenue through multiple streams, primarily from advertising, circulation, and digital subscriptions. The advertising revenue is derived from both print and digital platforms, where businesses pay to promote their products and services to Reach's audience. Circulation revenue comes from the sale of newspapers and magazines, both in physical and digital formats. Additionally, the company has been increasingly focusing on digital subscriptions, offering premium content to readers through their online platforms. Significant partnerships with advertisers and brands also contribute to their earnings, along with monetizing digital content through sponsored articles and affiliate marketing.

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: Neutral
• Last Price: 71.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 71.5 is below the 20-day moving average (MA) of 72.46, below the 50-day MA of 72.64, and below the 200-day MA of 76.39, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 79.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£198.63M	24.11	12.42%	―	―	―
SAA	70 Neutral	£209.69M	16.63	33.95%	0.78%	-12.89%	―
RCH	68 Neutral	£225.65M	4.52	7.38%	7.61%	-4.44%	19.95%
Sector *	60 Neutral	$43.99B	4.18	-7.47%	4.06%	2.47%	-40.32%
CAU	60 Neutral	£47.82M	9.61	-24.72%	4.99%	-5.93%	―
TIG	60 Neutral	£154.79M	8.84	-14.10%	4.66%	-6.63%	-177.14%
TMO	50 Neutral	£56.29M	―	-24.18%	―	-1.82%	67.47%

Reach plc Corporate Events

Reach plc Reports Half-Year Results with Focus on Digital Growth and Revenue Diversification

Reach plc reported its half-year results for the period ending June 30, 2025, highlighting a 3.4% decline in revenue to £256.0m, with print revenue down 4.8% and digital revenue up 1.8%. The company is focusing on new growth initiatives, including expanding video content, enhancing tech and AI capabilities, and diversifying revenue streams through subscriptions. Despite a challenging market, Reach plc maintained a strong operating profit margin and is confident in its growth priorities, which aim to connect with new audiences, accelerate tech usage, and diversify revenues. The company is also committed to efficient cost management and expects to meet its adjusted operating cost savings target.

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 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.