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Reach plc
(LSE:RCH)
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Rating:50Neutral
Price Target:
45.00 p
▲(5.26% Upside)
Action:Reiterated
Date:07/24/26
Overall score reflects mixed fundamentals with a conservative balance sheet but structurally declining revenue and a significant 2025 net loss, alongside weakening free cash flow. Technicals are a major drag due to a strong downtrend and bearish momentum. Valuation is partially supported by the very high dividend yield, but the negative P/E (loss-making) limits valuation comfort.
Positive Factors
Conservative leverage
Low debt levels give Reach durable financial flexibility to absorb revenue shocks and invest selectively in digital initiatives. Conservative leverage reduces refinancing risk, supports credit stability and preserves capacity for shareholder returns or strategic M&A over the next several quarters.
Negative Factors
Persistent revenue decline
A multiyear top-line contraction signals structural demand erosion for core print/advertising products. Continued revenue declines constrain scale economics, limit reinvestment capacity and increase reliance on cost cuts to sustain margins, raising medium-term execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Low debt levels give Reach durable financial flexibility to absorb revenue shocks and invest selectively in digital initiatives. Conservative leverage reduces refinancing risk, supports credit stability and preserves capacity for shareholder returns or strategic M&A over the next several quarters.
Read all positive factors
Reach plc (RCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£132.86M
Dividend Yield14.18%
Average Volume (3M)1.91M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-6.48%
EPS Growth-458.95%
CountryUK
Employees3,104
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)-0.56
Shares Outstanding318,336,300
10 Day Avg. Volume921,678
30 Day Avg. Volume1,910,748
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.33
Price to Sales (P/S)0.34
P/FCF Ratio10.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£46.00Price Target Upside7.60% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.23
Revenue Forecast (FY)£464.30M
Reach plc Business Overview & Revenue Model
Company Description
Reach plc operates as a commercial news publisher in the United Kingdom, the rest of Europe, and internationally. The company offers newspapers and magazines through wholesalers under the Mirror, Express, Daily Star, Daily Record, Manchester Eveni...
How the Company Makes Money
Reach plc primarily makes money by monetising the audiences of its digital and print news brands through advertising and reader-related revenues. A major revenue stream is advertising: brands generate income from selling advertising inventory acro...
Reach plc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 495.30M | 518.40M | 538.60M | 568.60M | 601.40M | 615.80M |
| Gross Profit | 206.90M | 218.20M | 235.20M | 223.90M | 225.70M | 286.40M |
| EBITDA | -114.90M | -115.10M | 90.60M | 61.40M | 106.80M | 93.70M |
| Net Income | -179.20M | -132.30M | 53.60M | 21.50M | 52.30M | 2.90M |
Balance Sheet | ||||||
| Total Assets | 837.60M | 949.40M | 1.21B | 1.22B | 1.26B | 1.34B |
| Cash, Cash Equivalents and Short-Term Investments | 16.50M | 16.10M | 22.70M | 19.90M | 40.40M | 65.70M |
| Total Debt | 79.10M | 66.70M | 62.30M | 63.20M | 46.70M | 36.20M |
| Total Liabilities | 372.10M | 423.20M | 530.90M | 582.10M | 621.50M | 703.70M |
| Stockholders Equity | 465.50M | 526.20M | 678.60M | 637.20M | 637.50M | 638.80M |
Cash Flow | ||||||
| Free Cash Flow | 16.20M | 16.70M | 14.20M | 12.40M | 7.00M | 73.10M |
| Operating Cash Flow | 18.70M | 19.30M | 26.00M | 15.90M | 20.70M | 85.60M |
| Investing Cash Flow | -10.40M | -9.60M | 4.90M | -19.30M | -30.40M | -28.60M |
| Financing Cash Flow | -9.80M | -20.90M | -30.00M | -17.10M | -15.60M | -33.30M |
Reach plc Technical Analysis
Negative
42.75
Price Trends
46.90
Negative
49.54
Negative
52.02
Negative
Market Momentum
-1.09
Negative
37.94
Neutral
40.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCH, the sentiment is Negative. The current price of 42.75 is above the 20-day moving average (MA) of 42.59, below the 50-day MA of 46.90, and below the 200-day MA of 52.02, indicating a bearish trend. The MACD of -1.09 indicates Negative momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RCH.
Reach plc Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £328.85M | -107.83 | -0.61% | 2.25% | -6.07% | 99.09% | |
64 Neutral | £260.33M | 8.24 | 3.57% | 5.85% | -8.41% | -51.11% | |
61 Neutral | £2.63B | 11.60 | 13.15% | 7.14% | 1.58% | 27.05% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | £176.08M | -82.68 | -6.04% | 1.23% | -12.14% | -117.78% | |
50 Neutral | £132.86M | -0.75 | -36.14% | 14.18% | -6.48% | -458.95% | |
48 Neutral | £50.93M | -9.82 | 75.19% | 6.98% | -5.90% | -146.37% |
* Communication Services Sector Average
GB:RCH
Reach plc
41.60
-21.30
-33.86%
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GB:SFOR
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Reach plc Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Reach plc holds margins and cash as digital and print pressures deepen
Neutral
Jul 22, 2026
Reach plc reported half-year revenue of £232.9m for the six months to 30 June 2026, down 9% year-on-year, as both print and digital operations faced industry-wide headwinds. Print revenue fell 8.3% amid a sharp decline in circulation volumes,...
Business Operations and StrategyFinancial Disclosures
Reach plc sets dates for interim results and investor presentations
Positive
Jul 9, 2026
Reach plc will publish its interim financial results for the six months to 30 June 2026 on 22 July, accompanied by an investor and analyst presentation in London hosted by Chief Executive Piers North and Chief Financial Officer Darren Fisher. The ...
Business Operations and Strategy
Reach plc Adds Shares to Employee Benefit Trust to Manage Plan Dilution
Neutral
Jun 2, 2026
Reach plc has disclosed that its Employee Benefit Trust has acquired 142,493 ordinary shares of 10p each on the London Stock Exchange, in line with the group’s policy of purchasing shares to help manage dilution arising from employee share p...
Business Operations and StrategyStock Buyback
Reach plc Employee Benefit Trust Buys Shares to Manage Incentive Plan Dilution
Neutral
Jun 1, 2026
Reach plc has disclosed that its Employee Benefit Trust has acquired 307,507 ordinary shares on the London Stock Exchange, in line with the company’s strategy to manage dilution arising from share-based incentive plans. The shares, each with...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Reach plc investors back all resolutions at annual meeting
Positive
May 6, 2026
Reach plc shareholders approved all resolutions at the company’s annual general meeting held in London, including the annual report and accounts, the proposed dividend and the remuneration report. Investors also backed the re-election of all...
Business Operations and StrategyFinancial Disclosures
Reach plc weathers digital headwinds but stays on track for 2026 targets
Negative
May 6, 2026
Reach plc reported a 6.9% year-on-year decline in group revenue for the first quarter of 2026, with digital revenue down 8.1% and print revenue down 6.6%, as lower search and referral traffic, mainly from Google, continued to weigh on performance....
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.