Rightmove (LSE:RMV) - Share price, News & Analysis

Q: What is the Fair Price of RMV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

RMV (£5.74) is trading above our estimate of [[fair value]] (£5.6)

RMV fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

RMV Stock Overview

Rightmove plc, together with its subsidiaries, operates property portals in the United Kingdom and internationally.

Rewards

Earnings are forecast to grow 6.43% per year

Earnings have grown 1.9% per year over the past 5 years

Risk Analysis

No risks detected for RMV from our risk checks.

Rightmove Competitors

Auto Trader Group

LSE:AUTO

UK£5.3b

Moneysupermarket.com Group

LSE:MONY

UK£970.0m

XLMedia

AIM:XLM

UK£77.3m

National World

LSE:NWOR

UK£46.7m

Price History & Performance

Summary of all time highs, changes and price drops for Rightmove
Historical stock prices
Current Share Price	UK£5.95
52 Week High	UK£8.10
52 Week Low	UK£5.19
Beta	0.58
1 Month Change	0.24%
3 Month Change	-6.36%
1 Year Change	-9.98%
3 Year Change	11.07%
5 Year Change	41.82%
Change since IPO	1,417.40%

Recent News & Updates

Jun 02

Calculating The Intrinsic Value Of Rightmove plc (LON:RMV)

In this article we are going to estimate the intrinsic value of Rightmove plc ( LON:RMV ) by taking the expected future...

Apr 28

Rightmove (LON:RMV) Is Increasing Its Dividend To UK£0.048

Rightmove plc ( LON:RMV ) has announced that it will be increasing its dividend on the 27th of May to UK£0.048. This...

Mar 29

Rightmove (LON:RMV) Is Paying Out A Larger Dividend Than Last Year

Rightmove plc ( LON:RMV ) will increase its dividend on the 27th of May to UK£0.048. This will take the annual payment...

Shareholder Returns

	RMV	GB Interactive Media and Services	GB Market
7D	4.1%	0.4%	-4.3%
1Y	-10.0%	-37.2%	-10.9%

Return vs Industry: RMV exceeded the UK Interactive Media and Services industry which returned -37.6% over the past year.

Return vs Market: RMV underperformed the UK Market which returned -9.3% over the past year.

Price Volatility

Is RMV's price volatile compared to industry and market?
RMV volatility
RMV Average Weekly Movement	4.4%
Interactive Media and Services Industry Average Movement	6.2%
Market Average Movement	5.3%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: RMV is not significantly more volatile than the rest 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.

About the Company

Founded	Employees	CEO	Website
2000	614	Peter Brooks-Johnson	https://plc.rightmove.co.uk

Rightmove plc, together with its subsidiaries, operates property portals in the United Kingdom and internationally. It operates through Agency, New Homes, and Other segments. The Agency segment provides property resale and letting advertising services on its platforms.

Rightmove Fundamentals Summary

How do Rightmove's earnings and revenue compare to its market cap?
RMV fundamental statistics
Market Cap	UK£4.80b
Earnings (TTM)	UK£183.09m
Revenue (TTM)	UK£304.89m

27.2x

P/E Ratio

16.3x

P/S Ratio

Is RMV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMV income statement (TTM)
Revenue	UK£304.89m
Cost of Revenue	UK£0
Gross Profit	UK£304.89m
Other Expenses	UK£121.79m
Earnings	UK£183.09m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)	0.22
Gross Margin	100.00%
Net Profit Margin	60.05%
Debt/Equity Ratio	0%

How did RMV perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

37%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is RMV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RMV?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RMV. This is calculated by dividing RMV's market cap by their current preferred multiple.
What is RMV's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£4.80b

RMV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	15.6x
Enterprise Value/EBITDA	21.1x
PEG Ratio	4.2x

Price to Earnings Ratio vs Peers

How does RMV's PE Ratio compare to its peers?

RMV PE Ratio vs Peers

The above table shows the PE ratio for RMV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.6x
AUTO Auto Trader Group	22.6x	4.8%	UK£5.3b
MONY Moneysupermarket.com Group	18.4x	18.6%	UK£970.0m
XLM XLMedia	16.3x	30.7%	UK£77.3m
NWOR National World	8.8x	22.4%	UK£46.7m
RMV Rightmove	26.2x	6.4%	UK£4.8b

Forward PE

Price-To-Earnings vs Peers: RMV is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does RMV's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

Price-To-Earnings vs Industry: RMV is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the UK Interactive Media and Services industry average (24.8x)

Price to Earnings Ratio vs Fair Ratio

What is RMV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RMV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.2x
Fair PE Ratio	24.1x

Price-To-Earnings vs Fair Ratio: RMV is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the estimated Fair Price-To-Earnings Ratio (24.1x).

Share Price vs Fair Value

What is the Fair Price of RMV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RMV (£5.74) is trading above our estimate of fair value (£5.6)

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

Price to Earnings Growth Ratio

PEG Ratio: RMV is poor value based on its PEG Ratio (4.1x)

Discover undervalued companies

Future Growth

How is Rightmove forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMV's forecast earnings growth (6.4% per year) is above the savings rate (0.9%).

Earnings vs Market: RMV's earnings (6.4% per year) are forecast to grow slower than the UK market (10.9% 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 (4.1% 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 (259.9%).

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Past Performance

How has Rightmove performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.9%

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 (53.4%).

Past Earnings Growth Analysis

Earnings Trend: RMV's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: RMV's earnings growth over the past year (66.8%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: RMV earnings growth over the past year (66.8%) underperformed the Interactive Media and Services industry 66.8%.

Return on Equity

High ROE: RMV's Return on Equity (259.6%) is considered outstanding.

Discover strong past performing companies

Financial Health

How is Rightmove's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RMV's short term assets (£72.3M) exceed its short term liabilities (£27.6M).

Long Term Liabilities: RMV's short term assets (£72.3M) exceed its long term liabilities (£9.4M).

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

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.61%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RMV's dividend (1.67%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.91%).

High Dividend: RMV's dividend (1.67%) is low compared to the top 25% of dividend payers in the UK market (5.22%).

Stability and Growth of Payments

Stable Dividend: RMV's dividend payments have been volatile in the past 10 years.

Growing Dividend: RMV's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.6%), RMV's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.3%), RMV's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.4yrs

Average management tenure

CEO

Peter Brooks-Johnson

5.17yrs

Tenure

UK£1,673,673

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 ($USD1.99M) is below average for companies of similar size in the UK market ($USD3.18M).

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

Leadership Team

Experienced Management: RMV's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: RMV's board of directors are considered experienced (4.4 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/06 00:00
End of Day Share Price	2022/07/06 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31