Rightmove (LSE: RMV): Company overview and investment case
Rightmove plc is the UK’s leading online property portal, founded in 2000 and based in Milton Keynes. It operates rightmove.co.uk, the most visited property website in the UK, serving estate agents, lettings agents, developers, and other property professionals. The company is listed on the London Stock Exchange and is part of the FTSE 100 Index.
Why Rightmove could be a good investment
1. Market dominance and strong brand
Rightmove commands over 80% of user time spent on UK property listings. Its strong brand recognition makes it the default platform for both property seekers and advertisers.
2. Robust financial performance
In 2024, Rightmove reported revenues of £389.9 million and a net income of £192.7 million, with a net profit margin close to 49%. Its subscription-based business model ensures stable and recurring revenue.
3. High profit margins
The company operates with a gross profit margin of nearly 100%, reflecting the low cost of delivering its digital services. This translates into excellent profitability and strong cash flow.
4. Growth prospects
Analysts forecast annual earnings growth of 7.5% and revenue growth of 8%, with expected EPS growth of 10% per annum—signs of healthy long-term prospects.
5. Dividend payments
Rightmove offers a dividend yield of around 1.38% with a payout ratio of 36%, suggesting a sustainable and potentially growing dividend policy.
6. Resilience and Competitive Edge
Despite competition from Zoopla and OnTheMarket, Rightmove’s scale, user engagement, and comprehensive listings create a significant competitive moat. The platform remains essential to most estate agents, even in tougher markets.
7. Recent takeover interest
In 2024, the company rejected a £5.6 billion takeover offer from Australia’s REA Group, indicating market confidence in its long-term value and potential undervaluation.
8. Attractive valuation
As of early 2025, Rightmove trades at a forward P/E ratio of about 23.6—reasonable for a company with dominant market share, strong margins, and solid growth outlook.
Conclusion
With its strong competitive position, high profitability, recurring revenues, and consistent growth, Rightmove presents an attractive investment opportunity in the UK digital real estate sector.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
