[SharePad] Screening For My Next Long-Term Winner: Rightmove

25 October 2019
By Maynard Paton

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Studying free cash conversion is vital when evaluating a set of accounts.

The measure compares free cash flow to reported earnings, and can indicate whether a business is a ‘cash fountain’ or a ‘cash guzzler’.

Ideally we want to own companies that generate plenty of spare cash, because such cash can:

  • Underpin accounting profits;
  • Indicate an attractive business, and;
  • Fund welcome dividends.

By employing SharePad, I identified Rightmove as an elite cash producer.

Read my full Rightmove article for SharePad.

Maynard Paton

One thought on “[SharePad] Screening For My Next Long-Term Winner: Rightmove

  1. John

    Exactly a near monopoly at present makes it a great business but will the status quo remain, does it ever. At that point there is no diversification.
    Auto trader has some similarities.
    Interesting that Smithson has a stake although not altogether suprising given the cash conversion margins and ROCE they hold dear.
    As a rightmove shareholder Id personally like to see gradual steps to future proof the business and become less reliant on a limited pool of customers, with other essentials such as software or more in data and analytics.

    Reply

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