Rightmove PLC Gross Profit vs. Operating Margin

RMV Stock   637.80  10.20  1.63%   
Based on the measurements of profitability obtained from Rightmove PLC's financial statements, Rightmove PLC may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Rightmove PLC's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2004-03-31
Previous Quarter
182.4 M
Current Value
189.4 M
Quarterly Volatility
52.7 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Rightmove PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rightmove PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rightmove PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rightmove PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rightmove PLC over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Rightmove PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rightmove PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rightmove PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Rightmove PLC Operating Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rightmove PLC's current stock value. Our valuation model uses many indicators to compare Rightmove PLC value to that of its competitors to determine the firm's financial worth.
Rightmove PLC is currently regarded as top stock in gross profit category among its peers. It also is currently regarded as top stock in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Rightmove PLC is about  485,579,562 . At present, Rightmove PLC's Gross Profit is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Rightmove PLC's earnings, one of the primary drivers of an investment's value.

Rightmove Operating Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Rightmove PLC

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
332.62 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Rightmove PLC

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.69 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Rightmove Operating Margin Comparison

Rightmove PLC is currently under evaluation in operating margin category among its peers.

Rightmove PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Rightmove PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rightmove PLC will eventually generate negative long term returns. The profitability progress is the general direction of Rightmove PLC's change in net profit over the period of time. It can combine multiple indicators of Rightmove PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income480 K504 K
Operating Income258 M270.9 M
Income Before Tax259.8 M272.8 M
Total Other Income Expense Net1.7 M1.8 M
Net Income199.2 M104.4 M
Income Tax Expense60.6 M63.6 M
Net Income Applicable To Common Shares225 M236.3 M
Net Income From Continuing Ops199.2 M157.5 M
Net Interest Income1.7 M1.8 M
Interest Income2.2 M2.3 M
Change To Netincome3.4 M3.8 M

Rightmove Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Rightmove PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Rightmove PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Rightmove PLC's important profitability drivers and their relationship over time.

Use Rightmove PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Rightmove PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rightmove PLC will appreciate offsetting losses from the drop in the long position's value.

Rightmove PLC Pair Trading

Rightmove PLC Pair Trading Analysis

The ability to find closely correlated positions to Rightmove PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rightmove PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Rightmove PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Rightmove PLC to buy it.
The correlation of Rightmove PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Rightmove PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rightmove PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Rightmove PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Rightmove PLC position

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Disruptive Technologies
Disruptive Technologies Theme
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Disruptive Technologies Theme or any other thematic opportunities.
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Other Information on Investing in Rightmove Stock

To fully project Rightmove PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rightmove PLC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Rightmove PLC's income statement, its balance sheet, and the statement of cash flows.
Potential Rightmove PLC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Rightmove PLC investors may work on each financial statement separately, they are all related. The changes in Rightmove PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Rightmove PLC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.