LSE:RMV

Stock Analysis Report

Executive Summary

Rightmove plc operates property portal in the United Kingdom.

Rewards

Earnings are forecast to grow 6.07% per year

Earnings have grown 12.8% per year over the past 5 years

Risk Analysis

No risks detected for RMV from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Rightmove's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RMV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

RMV

3.7%

GB Interactive Media and Services

1.4%

GB Market


1 Year Return

39.7%

RMV

19.6%

GB Interactive Media and Services

12.4%

GB Market

Return vs Industry: RMV exceeded the UK Interactive Media and Services industry which returned 21% over the past year.

Return vs Market: RMV exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

RMVIndustryMarket
7 Day4.0%3.7%1.4%
30 Day3.3%3.2%1.8%
90 Day16.4%14.2%8.8%
1 Year41.5%39.7%20.7%19.6%18.3%12.4%
3 Year75.8%69.1%51.2%46.7%23.8%8.0%
5 Year201.2%183.1%95.2%89.6%41.8%8.9%

Price Volatility Vs. Market

How volatile is Rightmove's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rightmove undervalued compared to its fair value and its price relative to the market?

35.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMV (£6.56) is trading above our estimate of fair value (£3.8)

Significantly Below Fair Value: RMV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RMV is poor value based on its PE Ratio (34.7x) compared to the Interactive Media and Services industry average (29.8x).

PE vs Market: RMV is poor value based on its PE Ratio (34.7x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: RMV is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: RMV is overvalued based on its PB Ratio (123x) compared to the GB Interactive Media and Services industry average (2.6x).


Next Steps

Future Growth

How is Rightmove forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMV's forecast earnings growth (6.1% per year) is above the savings rate (0.5%).

Earnings vs Market: RMV's earnings (6.1% per year) are forecast to grow slower than the UK market (11.7% per year).

High Growth Earnings: RMV's earnings are forecast to grow, but not significantly.

Revenue vs Market: RMV's revenue (6.2% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: RMV's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMV's Return on Equity is forecast to be very high in 3 years time (1246.3%).


Next Steps

Past Performance

How has Rightmove performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMV has high quality earnings.

Growing Profit Margin: RMV's current net profit margins (60.1%) are higher than last year (59.9%).


Past Earnings Growth Analysis

Earnings Trend: RMV's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: RMV's earnings growth over the past year (10.5%) is below its 5-year average (12.8% per year).

Earnings vs Industry: RMV earnings growth over the past year (10.5%) underperformed the Interactive Media and Services industry 11.9%.


Return on Equity

High ROE: RMV's Return on Equity (356.7%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rightmove's financial position?


Financial Position Analysis

Short Term Liabilities: RMV's short term assets (£80.1M) exceed its short term liabilities (£41.3M).

Long Term Liabilities: RMV's short term assets (£80.1M) exceed its long term liabilities (£11.6M).


Debt to Equity History and Analysis

Debt Level: RMV is debt free.

Reducing Debt: RMV has not had any debt for past 5 years.

Debt Coverage: RMV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RMV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RMV has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RMV's debt is covered by short term assets.


Next Steps

Dividend

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

1.03%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.8%markettop25%5.0%industryaverage1.1%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: RMV's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: RMV's dividend (1.04%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: RMV is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: RMV is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RMV is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RMV's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Rightmove's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Peter Brooks-Johnson 0

2.7yrs

Tenure

UK£1,490,178

Compensation

Mr. Peter Brooks-Johnson has been Chief Executive Officer of Rightmove plc since May 9, 2017. Mr. Brooks-Johnson served as Managing Director of rightmove.co.uk since January 10, 2011 and served as its Agen ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.94M) is below average for companies of similar size in the UK market ($USD3.42M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.0yrs

Average Tenure

Experienced Management: RMV's management team is considered experienced (5 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

50yo

Average Age

Experienced Board: RMV's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Thomas Shipside (59yo)

    Commercial Director

    • Tenure: 19yrs
    • Compensation: UK£19.65k
  • Peter Brooks-Johnson

    CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: UK£1.49m
  • Peter Armstrong

    Commercial Property Director

    • Robyn Perriss

      Finance Director & Executive Director

      • Tenure: 6.8yrs
      • Compensation: UK£1.11m
    • Sandra Odell (52yo)

      Company Secretary

      • Tenure: 3.2yrs

    Board Members

    • Jacqueline de Rojas (56yo)

      Senior Independent Director

      • Tenure: 0.7yrs
      • Compensation: UK£50.00k
    • Andrew Fisher (48yo)

      Non-Executive Chairman

      • Lorna Tilbian (62yo)

        Non-Executive Director

        • Tenure: 1.9yrs
        • Compensation: UK£45.83k
      • Peter Brooks-Johnson

        CEO & Executive Director

        • Tenure: 2.7yrs
        • Compensation: UK£1.49m
      • Robyn Perriss

        Finance Director & Executive Director

        • Tenure: 6.8yrs
        • Compensation: UK£1.11m
      • Andy Findlay (50yo)

        Non-Executive Director

        • Tenure: 2.6yrs
        • Compensation: UK£56.56k
      • Amit Tiwari

        Non-Executive Director

        • Tenure: 0.6yrs
      • Parekh Goss-Custard (45yo)

        Non-Executive Director

        • Tenure: 5.5yrs
        • Compensation: UK£50.00k

      Company Information

      Rightmove plc's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Rightmove plc
      • Ticker: RMV
      • Exchange: LSE
      • Founded: 2000
      • Industry: Interactive Media and Services
      • Sector: Media
      • Market Cap: UK£5.798b
      • Shares outstanding: 873.98m
      • Website: https://www.rightmove.co.uk

      Number of Employees


      Location

      • Rightmove plc
      • 2 Caldecotte Lake Business Park
      • Caldecotte Lake Drive
      • Milton Keynes
      • Buckinghamshire
      • MK7 8LE
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      RMVLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2006
      RTMV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2006
      RMVLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2006
      3JDADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2006
      RTMV.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDApr 2011

      Biography

      Rightmove plc operates property portal in the United Kingdom. The company operates through Agency, New Homes, and Other segments. The Agency segment offers resale and lettings property advertising services on its platforms. The New Homes segment provides property advertising services to new home developers and housing associations on its platforms. The Other segment offers overseas and commercial property advertising services; and non-property advertising services, which include third party and consumer services, as well as data services. The company serves estate agents, lettings agents, and new homes developers. Rightmove plc was founded in 2000 and is based in Milton Keynes, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 21:05
      End of Day Share Price2020/01/17 00:00
      Earnings2019/06/30
      Annual Earnings2018/12/31


      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.