Reach
Market Cap
UK£589.4m
Last Updated
2021/01/16 02:21 UTC
Data Sources
Company Financials +
Executive Summary
Reach plc produces and distributes content through newspapers, magazines, and digital platforms in the United Kingdom, the Republic of Ireland, Continental Europe, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with adequate balance sheet.
Similar Companies
Share Price & News
How has Reach's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RCH is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 14% a week.
Volatility Over Time: RCH's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of UK stocks.
Market Performance
7 Day Return
-6.6%
RCH
-1.4%
GB Media
-1.7%
GB Market
1 Year Return
43.3%
RCH
-17.0%
GB Media
-8.6%
GB Market
Return vs Industry: RCH exceeded the UK Media industry which returned -16.5% over the past year.
Return vs Market: RCH exceeded the UK Market which returned -7.7% over the past year.
Shareholder returns
| RCH | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.6% | -1.4% | -1.7% |
| 30 Day | 31.7% | 1.8% | 3.4% |
| 90 Day | 150.2% | 28.0% | 14.5% |
| 1 Year | 43.3%43.3% | -14.1%-17.0% | -4.9%-8.6% |
| 3 Year | 202.8%161.0% | -15.1%-26.9% | 3.7%-9.0% |
| 5 Year | 64.9%27.9% | -11.0%-30.6% | 47.1%13.7% |
Long-Term Price Volatility Vs. Market
How volatile is Reach's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Reach (LON:RCH) Has Gifted Shareholders With A Fantastic 123% Total Return On Their Investment1 month ago | Simply Wall St
Does Reach's (LON:RCH) Statutory Profit Adequately Reflect Its Underlying Profit?2 months ago | Simply Wall St
Is Reach (LON:RCH) A Risky Investment?Valuation
Is Reach undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCH (£1.91) is trading below our estimate of fair value (£4.13)
Significantly Below Fair Value: RCH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RCH is good value based on its PE Ratio (13.1x) compared to the GB Media industry average (19.9x).
PE vs Market: RCH is good value based on its PE Ratio (13.1x) compared to the UK market (23x).
Price to Earnings Growth Ratio
PEG Ratio: RCH is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: RCH is good value based on its PB Ratio (0.9x) compared to the GB Media industry average (1.5x).
Next Steps
Future Growth
How is Reach forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
21.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCH's forecast earnings growth (21.9% per year) is above the savings rate (1%).
Earnings vs Market: RCH's earnings (21.9% per year) are forecast to grow slower than the UK market (26.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RCH's revenue is expected to decline over the next 3 years (-2.3% per year).
High Growth Revenue: RCH's revenue is forecast to decline over the next 3 years (-2.3% 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
Next Steps
Past Performance
How has Reach performed over the past 5 years?
-18.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCH has a large one-off loss of £36.8M impacting its June 28 2020 financial results.
Growing Profit Margin: RCH's current net profit margins (7%) are higher than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: RCH's earnings have declined by 18.3% per year over the past 5 years.
Accelerating Growth: RCH's earnings growth over the past year (13.3%) exceeds its 5-year average (-18.3% per year).
Earnings vs Industry: RCH earnings growth over the past year (13.3%) exceeded the Media industry -35.7%.
Return on Equity
High ROE: RCH's Return on Equity (6.9%) is considered low.
Next Steps
Financial Health
How is Reach's financial position?
Financial Position Analysis
Short Term Liabilities: RCH's short term assets (£163.9M) do not cover its short term liabilities (£178.5M).
Long Term Liabilities: RCH's short term assets (£163.9M) do not cover its long term liabilities (£595.1M).
Debt to Equity History and Analysis
Debt Level: RCH's debt to equity ratio (3.8%) is considered satisfactory.
Reducing Debt: RCH's debt to equity ratio has reduced from 11% to 3.8% over the past 5 years.
Debt Coverage: RCH's debt is well covered by operating cash flow (370.4%).
Interest Coverage: RCH's interest payments on its debt are well covered by EBIT (43.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Reach current dividend yield, its reliability and sustainability?
3.81%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RCH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RCH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RCH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RCH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: RCH is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RCH's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Jim Mullen (49 yo)
1.42yrs
Tenure
UK£623,060
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 ($USD846.92K) is about average for companies of similar size in the UK market ($USD1.02M).
Compensation vs Earnings: Insufficient data to compare Jim's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.42yrs | UK£623.06k | 0.034% £ 199.1k | |
| CFO & Director | 1.83yrs | UK£649.20k | no data | |
| Group Editor-In-Chief | 6.17yrs | no data | no data | |
| Director of Corporate Development | no data | no data | no data | |
| Group HR Director | 4.25yrs | no data | no data | |
| Managing Director of Trinity Mirror Printing | 9.33yrs | no data | no data | |
| Chief Operating Officer of Nationals Division | no data | no data | no data | |
| Chief Revenue Officer | 4yrs | no data | no data | |
| Chief Innovation Officer | no data | no data | no data | |
| Group Company Secretary | no data | no data | no data |
4.1yrs
Average Tenure
49yo
Average Age
Experienced Management: RCH's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.42yrs | UK£623.06k | 0.034% £ 199.1k | |
| CFO & Director | 1.83yrs | UK£649.20k | no data | |
| Independent Chairman | 2.67yrs | UK£180.00k | 0.036% £ 212.4k | |
| Senior Independent Director | 5.08yrs | UK£58.00k | 0.012% £ 69.7k | |
| Independent Non-Executive Director | 1.58yrs | UK£31.00k | 0.0039% £ 22.8k | |
| Independent Non Executive Director | 6.08yrs | UK£58.00k | 0.0034% £ 19.9k | |
| Independent Non-Executive Director | 5.08yrs | UK£45.00k | 0.0033% £ 19.5k | |
| Independent Non-Executive Director | 5yrs | UK£45.00k | 0.018% £ 105.6k |
3.8yrs
Average Tenure
58yo
Average Age
Experienced Board: RCH's board of directors are considered experienced (3.8 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 company bio, 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£589.359m
- Shares outstanding: 308.57m
- Website: https://www.reachplc.com
Number of Employees
Location
- Reach plc
- One Canada Square
- Canary Wharf
- London
- Greater London
- E14 5AP
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MRR | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| RCH | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| RCHL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
Biography
Reach plc produces and distributes content through newspapers, magazines, and digital platforms in the United Kingdom, the Republic of Ireland, Continental Europe, and internationally. The company produces...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 02:21 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/28 |
| Annual Earnings | 2019/12/29 |
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.