Who is buying? Astute investors are buying. This company is coming out of a cyclical downturn and its financials are strengthening.
Q1FY2024 revenue rose 12%, but analysis of the 1H2024 Report shows Q2FY2024 revenue rose 24%. Let's remember that national new property listings rose just 4% across 1H2024, but were up 12% in January 2024. The company noted that it expects India revenue growth to strengthen in 2H2024, and at some point the extremely low turnover in the US property market will improve and provide a tailwind for Move. Maybe some see the share price as excessive and not supporting about $4 of underlying EPS, but they might also be shortsighted as to market position and the growth levers that REA possesses. Don't come here looking for dividend yield. The business has consistently generated Return on Equity above 25%, why on earth would we want profits paid out when these type of returns can be earned on retained earnings?
REA Price at posting:
$193.50 Sentiment: None Disclosure: Held
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