LSE:RMV

Stock Analysis Report

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Executive Summary

Rightmove plc operates property portal in the United Kingdom. More Details

Rewards

Earnings are forecast to grow 25.98% per year

Risk Analysis

No risks detected for RMV from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.


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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RMV's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-5.0%

RMV

-2.2%

GB Interactive Media and Services

0.0002%

GB Market


1 Year Return

-3.5%

RMV

6.9%

GB Interactive Media and Services

-10.0%

GB Market

Return vs Industry: RMV underperformed the UK Interactive Media and Services industry which returned 8.7% over the past year.

Return vs Market: RMV exceeded the UK Market which returned -9.1% over the past year.


Shareholder returns

RMVIndustryMarket
7 Day-5.0%-2.2%0.0002%
30 Day-6.9%-4.9%10.0%
90 Day-4.2%-4.8%7.0%
1 Year-3.5%-3.5%7.1%6.9%-6.4%-10.0%
3 Year53.9%50.0%28.7%26.2%1.3%-11.1%
5 Year55.5%47.9%37.5%32.7%25.7%-2.9%

Long-Term 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?

39.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMV (£6.06) is trading above our estimate of fair value (£3.34)

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 (39.2x) compared to the XE Interactive Media and Services industry average (33.9x).

PE vs Market: RMV is poor value based on its PE Ratio (39.2x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: RMV is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: RMV is overvalued based on its PB Ratio (87.1x) compared to the GB Interactive Media and Services industry average (6.3x).


Next Steps

Future Growth

How is Rightmove forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMV's forecast earnings growth (26% per year) is above the savings rate (1.2%).

Earnings vs Market: RMV's earnings (26% per year) are forecast to grow slower than the UK market (27% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RMV's revenue (20.5% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: RMV's revenue (20.5% per year) is forecast to grow faster 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 (202.3%).


Next Steps

Past Performance

How has Rightmove performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMV has high quality earnings.

Growing Profit Margin: RMV's current net profit margins (56.4%) are lower than last year (60.1%).


Past Earnings Growth Analysis

Earnings Trend: RMV's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: RMV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RMV had negative earnings growth (-19.6%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (42.5%).


Return on Equity

High ROE: RMV's Return on Equity (224%) is considered outstanding.


Next Steps

Financial Health

How is Rightmove's financial position?


Financial Position Analysis

Short Term Liabilities: RMV's short term assets (£63.5M) exceed its short term liabilities (£27.0M).

Long Term Liabilities: RMV's short term assets (£63.5M) exceed its long term liabilities (£13.6M).


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


Next Steps

Dividend

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

0.99%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RMV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RMV'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 RMV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RMV's dividend payments have been 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

  • Explore strong dividend paying companies in the Media industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Peter Brooks-Johnson

3.5yrs

Tenure

UK£2,155,759

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 ($USD2.89M) is about average for companies of similar size in the UK market ($USD3.06M).

Compensation vs Earnings: Peter's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Brooks-Johnson
CEO & Executive Director3.5yrsUK£2.16m0.23%
£ 12.1m
Alison Dolan
Chief Financial Officer0.17yrno datano data
Sandra Odell
Company Secretary4yrsno datano data
Thomas Shipside
Commercial Director19.83yrsUK£19.65kno data
Peter Armstrong
Commercial Property Directorno datano datano data

3.8yrs

Average Tenure

Experienced Management: RMV's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Brooks-Johnson
CEO & Executive Director3.5yrsUK£2.16m0.23%
£ 12.1m
Jacqueline de Rojas
Senior Independent Non-Executive Director1.5yrsUK£58.21k0.00022%
£ 11.5k
Andrew Fisher
Independent Non-Executive Chairman0.83yrno data0.0023%
£ 120.0k
Lorna Tilbian
Independent Non-Executive Director2.75yrsUK£64.62kno data
Andrew Findlay
Independent Non-Executive Director3.42yrsUK£70.00kno data
Amit Tiwari
Independent Non-Executive Director1.42yrsUK£32.08kno data
Rakhi Goss-Custard
Independent Non-Executive Director6.33yrsUK£55.00k0.00063%
£ 32.9k

2.8yrs

Average Tenure

51yo

Average Age

Experienced Board: RMV's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

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£5.217b
  • Shares outstanding: 870.31m
  • Website: https://www.plc.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
RMV NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMar 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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 21:18
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.