LSE:RMV

Stock Analysis Report

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Market Cap

UK£6.0b

Last Updated

2021/07/31 04:28 UTC

Data Sources

Company Financials +

Executive Summary

Rightmove plc, together with its subsidiaries, operates property portals in the United Kingdom. More Details


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

Volatility Over Time: RMV's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.3%

RMV

1.1%

GB Interactive Media and Services

0.3%

GB Market


1 Year Return

26.9%

RMV

11.6%

GB Interactive Media and Services

22.4%

GB Market

Return vs Industry: RMV exceeded the UK Interactive Media and Services industry which returned 11.6% over the past year.

Return vs Market: RMV exceeded the UK Market which returned 22.4% over the past year.


Shareholder returns

RMVIndustryMarket
7 Day4.3%1.1%0.3%
30 Day6.8%3.5%0.3%
90 Day14.4%9.5%1.5%
1 Year27.9%26.9%11.9%11.6%27.9%22.4%
3 Year48.1%44.4%26.5%24.1%12.7%-0.1%
5 Year75.3%66.6%53.0%47.4%39.4%12.6%

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?

39.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMV (£7.02) is trading above our estimate of fair value (£4.86)

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 (39.7x) compared to the European Interactive Media and Services industry average (36.4x).

PE vs Market: RMV is poor value based on its PE Ratio (39.7x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: RMV is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: RMV is overvalued based on its PB Ratio (67.5x) compared to the GB Interactive Media and Services industry average (4.2x).


Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMV's forecast earnings growth (9.2% per year) is above the savings rate (0.9%).

Earnings vs Market: RMV's earnings (9.2% per year) are forecast to grow slower than the UK market (14.8% per year).

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

Revenue vs Market: RMV's revenue (7.4% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: RMV's revenue (7.4% 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 (216.8%).


Past Performance

How has Rightmove performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMV has a high level of non-cash earnings.

Growing Profit Margin: RMV's current net profit margins (58.7%) are higher than last year (56.4%).


Past Earnings Growth Analysis

Earnings Trend: RMV's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: RMV's earnings growth over the past year (12.9%) exceeds its 5-year average (1.6% per year).

Earnings vs Industry: RMV earnings growth over the past year (12.9%) underperformed the Interactive Media and Services industry 63.9%.


Return on Equity

High ROE: RMV's Return on Equity (170.5%) is considered outstanding.


Financial Health

How is Rightmove's financial position?


Financial Position Analysis

Short Term Liabilities: RMV's short term assets (£89.9M) exceed its short term liabilities (£26.5M).

Long Term Liabilities: RMV's short term assets (£89.9M) exceed its long term liabilities (£11.5M).


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


Dividend

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

0.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RMV's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: RMV's dividend (0.64%) is low compared to the top 25% of dividend payers in the UK market (4%).


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

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

4.4yrs

Average management tenure


CEO

Peter Brooks-Johnson

4.17yrs

Tenure

UK£1,008,448

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 ($USD1.40M) is below average for companies of similar size in the UK market ($USD2.23M).

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


Leadership Team

Experienced Management: RMV's management team is considered experienced (4.4 years average tenure).


Board Members

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£6.013b
  • Shares outstanding: 856.37m
  • Website: https://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


Biography

Rightmove plc, together with its subsidiaries, operates property portals in the United Kingdom. It operates through Agency, New Homes, and Other segments. The Agency segment provides property resale and le...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 04:28
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.