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

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29 February 2024
By Maynard Paton

Today I am studying Property Franchise, an estate-agency franchising business that appeared on my radar after I reviewed fellow estate-agency franchisor Belvoir last year.

To recap, I finished my Belvoir write-up by suggesting Property Franchise might have been the better sector opportunity:

The outperformance of Property Franchise following Belvoir’s [unsuccessful bid] approach could in fact mean Property Franchise is the better business of the two. Just like Belvoir, Property Franchise claims to be the country’s largest property franchisor and, funnily enough, was also among the 21 matches from this SharePad screen…

I feel a review of Property Franchise is required to give greater shareholder perspective and to perhaps highlight a more attractive sector opportunity.

Determining whether Property Franchise or Belvoir is the better sector opportunity has now become academic because the two companies recently agreed to merge.

According to my SharePad filtering, the Property Franchise/Belvoir combination should be an attractive operator. Both Property Franchise and Belvoir continue to appear on my SharePad screen that seeks companies exhibiting:

  • An operating margin (latest and 10-year average) of 20% or more, and;
  • A return on equity (latest and 10-year average) of 20% or more.
(Source: SharePad)

Businesses blessed with a consistent margin and return on equity of at least 20% are probably quite special.

Let’s take a closer look at Property Franchise and the Belvoir merger.

Read my full PROPERTY FRANCHISE article for SharePad >>

Maynard Paton

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