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RCH

ReachLSE:RCH Stock Report

Market Cap

UK£1.2b

7D

-3.6%

1Y

505.5%

Updated

26 Sep, 2021

Data

Company Financials +
RCH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends2/6

RCH Overview

Reach plc, together with its subsidiaries, creates and distributes content through newspapers, magazines, and digital platforms in the United Kingdom, the Republic of Ireland, Continental Europe, and internationally.

Reach Competitors

Apple

NasdaqGS:AAPL

US$2.4t

Microsoft

NasdaqGS:MSFT

US$2.2t

Alphabet

NasdaqGS:GOOG.L

US$1.9t

Amazon.com

NasdaqGS:AMZN

US$1.7t

Price History & Performance

Summary of all time highs, changes and price drops for Reach
Historical stock prices
Current Share PriceUK£3.75
52 Week HighUK£0.70
52 Week LowUK£4.30
Beta0.28
1 Month Change-10.30%
3 Month Change33.51%
1 Year Change505.46%
3 Year Change481.13%
5 Year Change327.97%
Change since IPO66.18%

Recent News & Updates

Shareholder Returns

RCHGB MediaGB Market
7D-3.6%1.1%0.6%
1Y505.5%69.2%24.1%

Return vs Industry: RCH exceeded the UK Media industry which returned 69.2% over the past year.

Return vs Market: RCH exceeded the UK Market which returned 23.4% over the past year.

Price Volatility

Is RCH's price volatile compared to industry and market?
RCH volatility
RCH Beta0.28
Industry Beta1.03
Market Beta1

Stable Share Price: RCH is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RCH's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
19044,184Jim Mullenhttps://www.reachplc.com

Reach plc, together with its subsidiaries, creates and distributes content through newspapers, magazines, and digital platforms in the United Kingdom, the Republic of Ireland, Continental Europe, and internationally. The company produces and distributes content through paid-for and free newspapers and magazines, as well as through multi-platform digital sites. It has a portfolio of titles, including various brands, such as Daily Mirror, Sunday Mirror, Daily Express, Sunday Express, Daily Star, Sunday Star, Sunday People, Daily Record, and Sunday Mail; and publishes OK!

Reach Fundamentals Summary

How do Reach's earnings and revenue compare to its market cap?
RCH fundamental statistics
Market CapUK£1.16b
Earnings (TTM)-UK£59.10m
Revenue (TTM)UK£611.70m

1.9x

P/S Ratio

-19.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCH income statement (TTM)
RevenueUK£611.70m
Cost of RevenueUK£309.30m
Gross ProfitUK£302.40m
ExpensesUK£361.50m
Earnings-UK£59.10m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.19
Gross Margin49.44%
Net Profit Margin-9.66%
Debt/Equity Ratio0%

How did RCH perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

-37%

Payout Ratio

Valuation

Is Reach undervalued compared to its fair value and its price relative to the market?

12.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RCH (£3.75) is trading below our estimate of fair value (£4.28)

Significantly Below Fair Value: RCH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RCH is unprofitable, so we can't compare its PE Ratio to the UK Media industry average.

PE vs Market: RCH is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RCH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RCH's PB Ratio (1.9x) is in line with the GB Media industry average.


Future Growth

How is Reach forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

60.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: RCH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RCH's is expected to become profitable in the next 3 years.

Revenue vs Market: RCH's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: RCH's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RCH's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Reach performed over the past 5 years?

-28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCH is currently unprofitable.

Growing Profit Margin: RCH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RCH is unprofitable, and losses have increased over the past 5 years at a rate of 28.1% per year.

Accelerating Growth: Unable to compare RCH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RCH is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (13.1%).


Return on Equity

High ROE: RCH has a negative Return on Equity (-9.42%), as it is currently unprofitable.


Financial Health

How is Reach's financial position?


Financial Position Analysis

Short Term Liabilities: RCH's short term assets (£161.5M) exceed its short term liabilities (£160.0M).

Long Term Liabilities: RCH's short term assets (£161.5M) do not cover its long term liabilities (£562.6M).


Debt to Equity History and Analysis

Debt Level: RCH is debt free.

Reducing Debt: RCH has no debt compared to 5 years ago when its debt to equity ratio was 23.4%.

Debt Coverage: RCH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RCH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Reach current dividend yield, its reliability and sustainability?

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RCH's dividend (1.47%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: RCH's dividend (1.47%) is low compared to the top 25% of dividend payers in the UK market (3.93%).


Stability and Growth of Payments

Stable Dividend: RCH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RCH's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: RCH is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RCH's dividends in 3 years are forecast to be well covered by earnings (20% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Jim Mullen (50 yo)

2.08yrs

Tenure

UK£485,000

Compensation

Mr. James Mullen, also known as Jim, has been Chief Executive Officer and Executive Director of Reach plc since August 16, 2019. Mr. Mullen serves as Non-Executive Director of Racecourse Media Group Limite...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD662.98K) is below average for companies of similar size in the UK market ($USD1.36M).

Compensation vs Earnings: Insufficient data to compare Jim's compensation with company performance.


Leadership Team

Experienced Management: RCH's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: RCH's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Reach plc's employee growth, exchange listings and data sources


Key Information

  • Name: Reach plc
  • Ticker: RCH
  • Exchange: LSE
  • Founded: 1904
  • Industry: Publishing
  • Sector: Media
  • Market Cap: UK£1.164b
  • Shares outstanding: 310.76m
  • Website: https://www.reachplc.com

Number of Employees


Location

  • Reach plc
  • One Canada Square
  • Canary Wharf
  • London
  • Greater London
  • E14 5AP
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 17:53
End of Day Share Price2021/09/24 00:00
Earnings2021/06/27
Annual Earnings2020/12/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.