# Reach plc (RCH.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Diversified Telecommunication Services. Price 41p, market value 130 millionp.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Reach plc reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.3×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **Free-cash-flow yield: 33.1%** (5-yr avg 0.1%). Free cash flow equals 33.1% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 42.9%**. Reach plc keeps 42.9% of revenue after the direct cost of what it sells.
- **Operating margin: -5.9%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -25.5%**. The company reported a net loss over the last twelve months.
- **Return on equity: -25.1%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -8.3%**. Return on all capital, debt included, is -8.3%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -8.3%**. Each dollar of assets produces -8.3% of profit.

## Growth
- **Revenue growth (1 yr): -3.8%** (3-yr -4.8%/yr, 5-yr -2.9%/yr). Revenue fell 3.8% over the last year, against -2.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -347.1%**. Earnings per share fell 347.1%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 33.6%/yr**. Free cash flow has compounded at 33.6% a year over three years.

## Financial health
- **Debt to equity: 0.13**. Debt is 0.13 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Reach plc holds more cash than debt.
- **Interest coverage: -4.7×**. Operating profit covers interest only -4.7×: fragile.
- **Current ratio: 0.69** (quick 0.64). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 0.98**. A Z-score of 0.98 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 14.18%** (0p per share, trailing). Reach plc yields 14.18%, high enough to check carefully: yields this high often precede a cut.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 15.1%**. Dividends plus net buybacks return 15.1% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (3 analysts). 3 analysts cover Reach plc; the consensus is buy, with an average price target of 93p (+124% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -41.7%** (YTD -23.8%, 3-mo -21.5%). The shares are down 41.7% over twelve months including dividends.
- **From 52-week high: -44.0%** (3.0% above the low). Trading 44% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 38**. An RSI of 38 is neutral.
- **Beta (1 yr): 0.19** (volatility 46%). Beta of 0.19 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RCH.L · Page: https://foliofundamentals.com/stocks/rch.l

Not investment advice.