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On The Beach
(LSE:OTB)
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Rating:61Neutral
Price Target:
185.00 p
â–¼(-4.34% Downside)
Action:Reiterated
Date:09/25/26
The score is driven primarily by improved profitability and a very low-debt balance sheet, offset by weaker cash flow quality (free cash flow dropping to zero in 2025). Technicals are neutral-to-soft and valuation is a significant headwind due to the high P/E and low dividend yield.
Positive Factors
Very Low Leverage
Extremely low leverage gives OTB resilience in a cyclical travel market and limits interest and refinancing pressure. The conservative balance sheet preserves flexibility to invest in digital growth, manage demand swings, and continue operating without heavy dependence on external financing.
Negative Factors
Free Cash Flow Deterioration
The move to zero free cash flow weakens the quality and flexibility of OTB’s earnings conversion, even while operating cash flow remains positive. If sustained, higher investment or working-capital demands could reduce funds available for growth, shareholder returns, or strengthening resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Extremely low leverage gives OTB resilience in a cyclical travel market and limits interest and refinancing pressure. The conservative balance sheet preserves flexibility to invest in digital growth, manage demand swings, and continue operating without heavy dependence on external financing.
Read all positive factors
On The Beach (OTB) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£237.89M
Dividend Yield0.57%
Average Volume (3M)686.20K
Price to Earnings (P/E)86.9
Beta (1Y)0.84
Revenue Growth-1.97%
EPS Growth-77.68%
CountryUK
Employees505
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding139,245,390
10 Day Avg. Volume430,142
30 Day Avg. Volume686,201
Financial Highlights & Ratios
PEG Ratio-1.36
Price to Book (P/B)2.22
Price to Sales (P/S)2.87
P/FCF Ratio14.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£223.75Price Target Upside15.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.18
Revenue Forecast (FY)£130.96M
On The Beach Business Overview & Revenue Model
Company Description
On the Beach Group plc operates as an online retailer of short haul beach holidays under the On the Beach brand in the United Kingdom and Republic of Ireland. The company provides its services through onthebeach.co.uk, sunshine.co.uk, and www.onth...
How the Company Makes Money
OTB generates revenue primarily by selling holidays and related travel services directly to consumers via its websites and apps. Its core model is an online retail travel agent: it sources travel components (such as hotel inventory and flight seat...
On The Beach Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 109.40M | 121.40M | 128.20M | 112.10M | 143.40M | 21.20M |
| Gross Profit | 94.20M | 108.70M | 121.70M | 100.70M | 82.10M | 2.50M |
| EBITDA | 39.70M | 43.20M | 44.00M | 31.20M | 19.00M | -23.30M |
| Net Income | 3.40M | 8.60M | 13.00M | 10.10M | 1.60M | -30.20M |
Balance Sheet | ||||||
| Total Assets | 610.90M | 502.10M | 495.90M | 435.20M | 346.90M | 276.70M |
| Cash, Cash Equivalents and Short-Term Investments | 209.60M | 234.10M | 96.20M | 75.80M | 64.50M | 56.00M |
| Total Debt | 30.20M | 2.20M | 2.80M | 4.50M | 3.90M | 2.90M |
| Total Liabilities | 484.30M | 345.30M | 313.40M | 267.00M | 190.10M | 126.80M |
| Stockholders Equity | 126.60M | 156.80M | 182.50M | 168.20M | 156.80M | 149.90M |
Cash Flow | ||||||
| Free Cash Flow | -12.80M | 24.40M | 16.60M | 21.90M | 39.60M | 8.50M |
| Operating Cash Flow | 39.80M | 43.40M | 26.90M | 22.00M | 52.00M | 13.60M |
| Investing Cash Flow | -10.50M | -7.80M | -2.60M | -7.90M | -12.10M | -5.00M |
| Financing Cash Flow | -54.60M | -37.20M | -5.60M | -2.80M | -700.00K | 23.30M |
On The Beach Technical Analysis
Positive
193.40
Price Trends
175.91
Positive
177.63
Negative
176.47
Negative
Market Momentum
-0.62
Negative
54.86
Neutral
73.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:OTB, the sentiment is Positive. The current price of 193.4 is above the 20-day moving average (MA) of 171.81, above the 50-day MA of 175.91, and above the 200-day MA of 176.47, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 73.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:OTB.
On The Beach Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £2.53B | 6.69 | 19.92% | 1.19% | 4.30% | -4.51% | |
69 Neutral | £1.89B | 10.24 | 6.41% | 2.89% | 2.96% | 9.30% | |
64 Neutral | £104.04M | 19.48 | 8.85% | 2.48% | 11.27% | -13.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £237.89M | 86.90 | 2.40% | 0.57% | -1.97% | -77.68% | |
60 Neutral | £830.66M | 17.72 | -99.49% | 1.32% | 6.54% | ― | |
58 Neutral | £1.37B | -50.41 | -65.76% | 2.39% | 4.58% | -24.15% |
* Consumer Cyclical Sector Average
GB:OTB
On The Beach
176.40
-35.63
-16.80%
GB:JET2
Jet2 PLC
1,418.00
113.61
8.71%
GB:HSW
Hostelworld
84.00
-38.71
-31.55%
GB:MAB
Mitchells & Butlers
317.50
73.00
29.86%
GB:SSPG
SSP Group plc
184.00
33.56
22.30%
GB:MOON
Moonpig Group Plc
284.80
71.90
33.77%
On The Beach Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
On the Beach lifts profit guidance as bookings hit record high
Positive
Sep 24, 2026
On the Beach Group reported a fifth consecutive year of record total transaction value, with bookings up 9% to £1.3bn and adjusted pre-tax profit for FY26 expected at £22-23m, in the top half of guidance. The company ended the year debt-...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
On the Beach Cuts Share Count with Latest Buyback Tranche
Positive
Sep 21, 2026
On the Beach Group PLC has continued executing its share buyback programme, repurchasing a total of 463,000 ordinary shares between 14 and 18 September 2026 on the London Stock Exchange at a volume-weighted average price of about 170.8 pence. Thes...
Business Operations and StrategyFinancial Disclosures
On the Beach Sets Dates for 2026 Trading Update and Final Results
Neutral
Sep 16, 2026
On the Beach Group plc has announced the timetable for its forthcoming financial communications, signalling the next key dates for investors and other stakeholders. The company will issue a pre-close trading update for the 12 months to 30 Septembe...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
On the Beach Reduces Share Count with Ongoing Buyback Programme
Positive
Sep 14, 2026
On the Beach Group PLC has continued its share buyback programme, repurchasing and cancelling 228,835 ordinary shares between 7 and 11 September 2026 on the London Stock Exchange at a volume-weighted average price of 178.75 pence. These transactio...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
On the Beach Cuts Share Count with Ongoing Buyback Programme
Positive
Sep 7, 2026
On the Beach Group PLC has continued its share buyback programme, repurchasing and cancelling 263,460 ordinary shares on the London Stock Exchange between 1 and 4 September 2026 at a volume-weighted average price of 185.01 pence. Following these t...
Regulatory Filings and Compliance
On the Beach Updates Market on Total Voting Rights
Neutral
Sep 1, 2026
On the Beach Group plc has confirmed that its issued ordinary share capital stands at 142,839,239 shares, each carrying voting rights. This disclosure aligns with regulatory transparency requirements and provides investors with an updated denomina...
Stock BuybackRegulatory Filings and Compliance
On the Beach trims share count with latest buyback tranche
Positive
Sep 1, 2026
On the Beach Group PLC has continued its previously announced share buyback programme, repurchasing and cancelling 262,660 ordinary shares between 24 and 28 August 2026 on the London Stock Exchange at a volume-weighted average price of 194.35 penc...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
On the Beach cuts share count with latest London buyback
Positive
Aug 24, 2026
On the Beach Group has continued its share buyback programme, repurchasing 246,043 ordinary shares on the London Stock Exchange between 17 and 21 August 2026 at prices ranging from 186p to 197p, with a volume‑weighted average of 191.84p. The...
Stock BuybackRegulatory Filings and Compliance
On the Beach Cuts Share Count with Latest Buyback Tranche
Positive
Aug 17, 2026
On the Beach Group PLC has continued executing its share buyback programme, repurchasing and cancelling 285,247 ordinary shares on the London Stock Exchange between 10 and 14 August 2026 at prices ranging from 191.20p to 200.00p, with a volume-wei...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
On the Beach Advances Buyback, Shrinks Share Count to 143.4 Million
Positive
Aug 10, 2026
On the Beach Group PLC has continued its share buyback programme, repurchasing and cancelling 319,884 ordinary shares on the London Stock Exchange between 3 and 7 August 2026 at prices ranging from 186.20p to 192.00p, with a volume-weighted averag...
Business Operations and StrategyStock BuybackFinancial Disclosures
On the Beach tightens share base with latest buyback tranche
Positive
Aug 3, 2026
On the Beach Group has continued its share buyback programme, repurchasing 201,734 ordinary shares between 27 and 31 July 2026 at prices ranging from 182p to 191.8p, with a volume-weighted average price of 186.54p. These shares have been cancelled...
Regulatory Filings and Compliance
On the Beach Confirms Updated Total Voting Rights
Neutral
Jul 31, 2026
On the Beach Group plc has confirmed that as of 31 July 2026 its issued ordinary share capital consists of 143,941,777 ordinary shares with a nominal value of 1 pence each. This figure represents the total number of shares carrying voting rights i...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
On the Beach Cuts Share Count as Buyback Programme Progresses
Positive
Jul 20, 2026
On the Beach Group PLC has continued its share buyback programme, purchasing 75,197 ordinary shares on the London Stock Exchange on 14 July 2026 through Peel Hunt, at prices ranging between 166.00p and 170.00p and a volume-weighted average price o...
Stock BuybackRegulatory Filings and Compliance
On the Beach trims share count with latest buyback trades
Positive
Jul 13, 2026
On the Beach Group PLC has continued executing its previously announced share buyback programme, purchasing 154,338 ordinary shares between 8 and 9 July 2026 on the London Stock Exchange for cancellation. The trades, carried out through Peel Hunt ...
Regulatory Filings and Compliance
On the Beach Confirms Total Voting Share Capital
Neutral
Jun 30, 2026
On the Beach Group plc has confirmed that, as of 30 June 2026, its issued ordinary share capital consists of 144,285,062 ordinary shares with a nominal value of 1 pence each. This figure represents the total number of shares carrying voting rights...
Stock BuybackRegulatory Filings and Compliance
On the Beach cancels 160,000 shares in ongoing buyback
Positive
Jun 29, 2026
On the Beach Group PLC has continued its recently announced share buyback programme, repurchasing and cancelling 160,591 ordinary shares between 22 and 26 June 2026 at a volume-weighted average price of 168.63 pence. Following these transactions, ...
Stock BuybackRegulatory Filings and Compliance
On the Beach Cuts Share Count with June Buybacks
Positive
Jun 29, 2026
On the Beach Group PLC has continued executing its previously announced share buyback programme, repurchasing 160,591 ordinary shares between 22 and 26 June 2026 via Peel Hunt on the London Stock Exchange at a volume-weighted average price of 168....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.