| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 2/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£3.75 |
| 52 Week High | UK£0.70 |
| 52 Week Low | UK£4.30 |
| Beta | 0.28 |
| 1 Month Change | -10.30% |
| 3 Month Change | 33.51% |
| 1 Year Change | 505.46% |
| 3 Year Change | 481.13% |
| 5 Year Change | 327.97% |
| Change since IPO | 66.18% |
Recent News & Updates
Shareholder Returns
| RCH | GB Media | GB Market | |
|---|---|---|---|
| 7D | -3.6% | 1.1% | 0.6% |
| 1Y | 505.5% | 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
| RCH volatility | |
|---|---|
| RCH Beta | 0.28 |
| Industry Beta | 1.03 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1904 | 4,184 | Jim Mullen | https://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
| RCH fundamental statistics | |
|---|---|
| Market Cap | UK£1.16b |
| Earnings (TTM) | -UK£59.10m |
| Revenue (TTM) | UK£611.70m |
1.9x
P/S Ratio-19.7x
P/E RatioIs RCH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RCH income statement (TTM) | |
|---|---|
| Revenue | UK£611.70m |
| Cost of Revenue | UK£309.30m |
| Gross Profit | UK£302.40m |
| Expenses | UK£361.50m |
| Earnings | -UK£59.10m |
Last Reported Earnings
Jun 27, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.19 |
| Gross Margin | 49.44% |
| Net Profit Margin | -9.66% |
| Debt/Equity Ratio | 0% |
How did RCH perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield-37%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/26 17:53 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/06/27 |
| Annual Earnings | 2020/12/27 |
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.