LSE:RCH

Stock Analysis Report

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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.


Snowflake Analysis

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

RCH

10.2%

GB Media

5.5%

GB Market


1 Year Return

9.1%

RCH

-26.4%

GB Media

-9.2%

GB Market

Return vs Industry: RCH exceeded the UK Media industry which returned -27% over the past year.

Return vs Market: RCH exceeded the UK Market which returned -10% over the past year.


Shareholder returns

RCHIndustryMarket
7 Day1.6%10.2%5.5%
30 Day18.9%20.1%10.8%
90 Day-40.9%-8.7%-0.4%
1 Year12.1%9.1%-23.8%-26.4%-4.8%-9.2%
3 Year3.3%-13.1%-32.0%-39.4%-0.8%-12.9%
5 Year-30.7%-47.0%-29.9%-43.9%18.1%-8.2%

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

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 (£0.84) is trading below our estimate of fair value (£1.75)

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 (2.6x) compared to the Media industry average (15.6x).

PE vs Market: RCH is good value based on its PE Ratio (2.6x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: RCH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RCH is good value based on its PB Ratio (0.4x) compared to the GB Media industry average (0.8x).


Next Steps

Future Growth

How is Reach forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCH's earnings are forecast to decline over the next 3 years (-6% per year).

Earnings vs Market: RCH's earnings are forecast to decline over the next 3 years (-6% per year).

High Growth Earnings: RCH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RCH's revenue is expected to decline over the next 3 years (-7.1% per year).

High Growth Revenue: RCH's revenue is forecast to decline over the next 3 years (-7.1% 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?

-25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCH has high quality earnings.

Growing Profit Margin: RCH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RCH's earnings have declined by -25.6% per year over the past 5 years.

Accelerating Growth: RCH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RCH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (-15.7%).


Return on Equity

High ROE: RCH's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Reach's financial position?


Financial Position Analysis

Short Term Liabilities: RCH's short term assets (£142.7M) do not cover its short term liabilities (£146.4M).

Long Term Liabilities: RCH's short term assets (£142.7M) do not cover its long term liabilities (£547.0M).


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 11%.

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


Next Steps

Dividend

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

7.40%

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?

3.5yrs

Average management tenure


CEO

Jim Mullen (48yo)

0.83

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 ($USD784.11K) is about average for companies of similar size in the UK market ($USD929.31K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Mullen
CEO & Executive Director0.83yrUK£623.06k0.034% £84.3k
Simon Fuller
CFO & Director1.25yrsUK£649.20kno data
Lloyd Embley
Group Editor-In-Chief5.58yrsno datano data
Philip Machray
Director of Corporate Developmentno datano datano data
Julia Warren
Group HR Director3.67yrsno datano data
John Richard Brewis
Managing Director of Trinity Mirror Printing8.75yrsno datano data
Neil Jagger
Chief Operating Officer of Nationals Divisionno datano datano data
Andy Atkinson
Chief Revenue Officer3.42yrsno datano data
Eirik Svendsen
Chief Innovation Officerno datano datano data
Lorraine Clover
Group Company Secretaryno datano datano data

3.5yrs

Average Tenure

48yo

Average Age

Experienced Management: RCH's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Mullen
CEO & Executive Director0.83yrUK£623.06k0.034% £84.3k
Simon Fuller
CFO & Director1.25yrsUK£649.20kno data
Nicholas E. Prettejohn
Independent Chairman2.08yrsUK£180.00k0.036% £89.9k
Helen Stevenson
Senior Independent Director4.5yrsUK£58.00k0.012% £29.5k
Anne Bulford
Independent Non-Executive Director1yrUK£31.00k0.0039% £9.7k
David Kelly
Independent Non Executive Director5.5yrsUK£58.00k0.0034% £8.4k
Steve Hatch
Independent Non-Executive Director4.5yrsUK£45.00k0.0033% £8.2k
Olivia Streatfeild
Independent Non-Executive Director4.42yrsUK£45.00k0.018% £44.7k

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: RCH's board of directors are considered experienced (3.3 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£249.798m
  • Shares outstanding: 296.32m
  • Website: https://www.reachplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RCHLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 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 and distributes content through paid-for and free national and regional newspapers and magazines, as well as through multi-platform digital sites; holds events and exhibitions related to publishing activities; and provides contract publishing for football clubs and other sport-related organizations. Its portfolio includes brands, such as the Daily Mirror, Sunday Mirror, Sunday People, Daily Express, Sunday Express, Daily Star, Daily Star Sunday, Daily Record, and Sunday Mail; and paid for celebrity magazines, such as OK! and New. The company also offers newspaper contract printing services to third parties. In addition, it is involved in the 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 founded in 1904 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 09:31
End of Day Share Price2020/06/04 00:00
Earnings2019/12/29
Annual Earnings2019/12/29


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.