Comparison of Listed Stocks (Oct 08)
November 5, 2008 by Simon Baker
In this month’s comparison we can see that the down turn in the global market is continuing to have an impact on the listed property portal sites with most seeing their share prices down month on month. The companies with a the biggest decline were move.com, loopnet.com, rightmove.co.uk and entreparticuliers.fr. Some of these sites hit 12 month lows.
One site to buck the trend was seloger.fr in France who recorded a 14% share price increase following the announcement of its financial performance for the first 9 months of the year.
Finally, it should be noted that while the share prices decrease for these companies, the underlying fundamentals continue to improve as they are mostly market leaders and they continue to have revenue increases while maintain strong margins.
The remainder of the article looks at the overall month on month changes in share price, market cap and the key ratios.
Month on Month Share Price Movement
Most listed property portal stocks decreased in value with rightmove, loopnet, move and entreparticuliers all losing a further 20% and 25% of their value. This is as much a reflection on the overall market dynamics and the continued overall fall in global stocks.
Seloger bucked the trend and increased its share price probably reflecting an oversell of the stock and the fact that they have put out their full year results and are on track to deliver their public forecast of revenues between EUR69m and EUR70m and EBITDA of between EUR36m and EUR37m, giving an EBITDA margin of between 52.2% and 52.8%, an increase of between 0.4 of a point and 1.0 point.
What was interesting is that major stock REA was relatively unaffected by the market changes and this pobably reflects the business model where REA is the only internationally diversified business.
Movement in Market Cap (Currency Movement Adjusted)
The table below shows the movement in the market cap of the listed companies (in US $) and this has been adjusted for the movements in currencies over the last month.
| 30/09/2008 | 31/10/2008 | US $ Market Cap Change | |||
| Company | Market Cap Local (m) | Market Cap in US$ (m) | Market Cap Local (m) | Market Cap in US$ (m) | |
| Rightmove | £309 | $551 | £235 | $383 | -30.4% |
| REA | $611 | $484 | $561 | $376 | -22.3% |
| Seloger | € 215 | $303 | € 245 | $315 | 3.9% |
| Move | $322 | $322 | $255 | $255 | -20.8% |
| Loopnet | $351 | $351 | $270 | $270 | -23.0% |
| HouseValues | $64 | $64 | $64 | $64 | 0.4% |
| Entreparticuliers | € 25 | $35 | € 19 | $25 | -28.3% |
| IPGA | $13 | $11 | $10 | $7 | -35.0% |
Over the last month the movement in exchange rates (especially the AUD/US$) has meant that the overall decrease in market cap has been greater for the group of listed stocks.
Seloger is the stand out and has remained flat in its currency adjusted market cap.
Share Price Comparison to 52 Week High / Low
The table below shows the current share price compared to the 52 week high and low.
| 52 Week High | 52 Week Low | ||||
| Company | 31 Oct Share Price | Share Price | Share Price Change | Share Price | Share Price Change |
| Rightmove | £1.930 | £6.000 | -67.8% | £1.615 | 19.5% |
| REA | $4.41 | $7.49 | -41.1% | $3.63 | 21.5% |
| Seloger | € 14.70 | € 46.50 | -68.4% | € 11.00 | 33.6% |
| Move | $1.68 | $3.47 | -51.6% | $1.49 | 12.8% |
| Loopnet | $7.57 | $23.90 | -68.3% | $6.45 | 17.4% |
| HouseValues | $2.66 | $3.98 | -33.2% | $1.50 | 77.3% |
| Entreparticuliers | € 5.50 | € 21.60 | -74.5% | € 5.10 | 7.8% |
| IPGA | $0.10 | $0.31 | -67.7% | $0.08 | 25.0% |
The following observations can be made:
- Rightmove, Move, Loopnet, and Entreparticuliers are all near 52 week lows
- Rightmove, Seloger, Move and Loopnet (from the big 5) continue to be significantly from their 12 month highs while the REA Group slightly less so.
Revenue, EBITDA and Net Profit Multiples
The table below compares the revenue, EBITDA and net profit multiples of all listed companies based on the most recent financial performance information. All companies, with the exception of Entreparticuliers, have financial information up to the end of June 2008.
| At 31 Oct | 12 Months to 30 June 2008 | |||||
| Company | REV (m) | REV x | EBITDA (m) | EBITDA x | NPAT (m) | NPAT x |
| Rightmove | £69 | 3.4 | £35 | 6.7 | £23 | 10.5 |
| REA | $156 | 3.6 | $37 | 15.3 | $22 | 25.1 |
| Seloger | € 57 | 4.3 | € 30 | 8.2 | € 14 | 18.1 |
| Move | $286 | 0.9 | -$7 | -36.4 | -$10 | -24.5 |
| Loopnet | $71 | 3.8 | $29 | 9.2 | $21 | 12.8 |
| HouseValues | $60 | 1.1 | -$13 | -4.8 | -$13 | -5.1 |
| Entreparticuliers | € 13 | 1.5 | € 4 | 5.4 | € 3 | 6.9 |
| IPGA | $1 | 15.1 | $0 | -142.1 | $0 | 444.8 |
The following observations can be made:
- Move, Housevalues and IPGA are all in loss making mode at the moment
- The REA Group EBITDA and NPAT multiples are all significantly higher than their peers and this probably reflects the market’s belief in the long term strategic direction of the business
- The Rightmove multiples are slightly lower than the peers probably relfecting the uncertainty of the UK housing market and its potential impact on estate agent numbers
Let me know what you think
Please note - these are the views of the author and are not meant to be construed as proper financial advice.
- Comparison of Listed Stocks (Sep 08)
In this month's financial comparison we can see that the down turn in the global market is having an impact on the listed property portal sites with their share prices down month on month. The companies with a the biggest...
- Monthly Comparison of Listed Property Portal Stocks (August 2008)
Each month I will publish analysis of the listed property portal companies around the world. The analysis will look at the month on month share price performance, the overall changes versus 12 month share price highs and lows, and the...
- Turning Around Move - the US Leader
Move Inc, the owner and operator of move.com, realtor.com and Top Producer is trading at 5 year lows - can they turn around the business?...
- UBS Downgrades Rightmove to a “Sell”
On September 15 2008, it was reported by Reuters that UBS has downgraded it recommendation for Rightmove, the UK property portal, from a "neutral" to a "sell". UBS cut its target price for Rightmove from 310p to 270p. Read on...
- Group Seloger Acquires Belle Demeures
Group Seloger, the owner of the largest property portal site in France - seloger.com, recently acquired the Belle Demeures Group which consists of a monthly print publication of top end properties and a web site (www.belledemeures.fr). Read on to find...
Related posts brought to you by Yet Another Related Posts Plugin.
Loading ...
Comments
Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!