Rightmove Stock And 2 High ROE Picks With Strong Balance Sheets

Globally, government bond yields are easing as inflation expectations soften, which takes some pressure off central banks to tighten quickly. When money is less focused on rising yields, attention often shifts back to companies with strong balance sheets and efficient use of capital. That is where a high return on equity and solid fundamentals screener can stand out. This article highlights three such stocks for investors who want to take a closer look.

The three stocks below are just a starting sample, and the full screen surfaced 18 more companies with similarly strong balance sheets, high return on equity and coherent business narratives that are not covered here.

To see the complete list and identify which of these solid balance sheet opportunities best fit your own criteria, head straight into the Solid Balance Sheet and Fundamentals screener.

Fonix (AIM:FNX)

Overview: Fonix is a London based payments and messaging platform that helps media, charity, gaming, e-mobility and other digital businesses bill customers through mobile carriers, SMS and voice, using its payment and messaging APIs, checkout tools and user verification services across the UK and Europe.

Operations: Fonix generates about £76 million in revenue from facilitating mobile payments and messaging, with roughly £62 million from the United Kingdom and £14 million from the rest of Europe.

Market Cap: £169 million

Fonix gives you exposure to the shift toward mobile centric payments, with a business that converts small, frequent customer interactions into fee based revenue for clients across media, gaming and other digital services. The company combines a very high reported return on equity with net margins around 15%, which points to efficient use of capital. However, the balance sheet relies entirely on external borrowing, which raises funding risk that investors need to weigh carefully. Analyst coverage is still fairly thin, so pricing may not fully reflect the quality signals in its earnings profile or the potential impact of upcoming results announcements.

Fonix converts frequent mobile interactions into strong reported returns, yet its reliance on external borrowing leaves a key question about resilience. Get the full story in the analysis report for Fonix

Build your own high return on equity shortlist

Fonix and the two other stocks in this article all came from a single screen, but the real edge is setting up filters that match what matters to you. Use our flexible Screener to mix metrics like return on equity, balance sheet strength and risks into your own watchlist, or start with any of our curated Investing Ideas.

Rightmove (LSE:RMV)

Overview: Rightmove runs one of the United Kingdom's leading online property portals, connecting home buyers, renters and commercial tenants with estate agents, letting agents, developers and other property professionals. It also offers data, advertising and mortgage services that support the broader housing market.

Operations: Rightmove generates around £318 million from its Estate Agency segment, about £76 million from New Homes and roughly £45 million from Other services such as commercial, overseas property, data, advertising and mortgages.

Market Cap: £3.52b

Rightmove attracts attention because it combines very high margins and return on equity with a business that sits at the heart of how UK consumers search for property online. Revenue of £225.85 million and net income of £111.21 million in the first half of 2026, alongside an active share buyback programme of up to £350 million and a rising interim dividend, reflect a company returning substantial cash to shareholders. At the same time, dependence on the UK housing cycle, heavy competition from rival portals and customer churn among new agents are risks that could limit growth. The balance between that income potential and these pressures is what makes Rightmove a candidate for closer examination in this screener.

Rightmove is returning large amounts of cash through buybacks and dividends while sitting at the centre of UK property search. See how that income story compares with housing cycle risks in the analysis report for Rightmove

Foresight Group Holdings (LSE:FSG)

Overview: Foresight Group Holdings is a London based asset manager that invests in infrastructure, private equity and venture capital, giving investors exposure to renewable energy projects, social and digital infrastructure, and smaller growth companies across the UK, Europe and Australia.

Operations: Foresight Group Holdings generates about £164.9 million in revenue, with roughly £114.8 million from Real Assets and £50.1 million from Private Equity, and the bulk of its £126.4 million geographic revenue coming from the United Kingdom.

Market Cap: £547 million

Foresight Group Holdings may appeal to investors seeking exposure to energy transition and real assets through a manager that runs sizeable Real Assets and Private Equity platforms, yet still holds modest market shares across its core regions. Reported earnings and revenue growth, high margins and a P/E below many peers indicate the market may not fully reflect its long term AUM ambitions, particularly as buybacks steadily reduce the free float. However, there is meaningful reliance on performance fees, UK and European policy support for renewables, and rising administrative costs that could affect profitability if fundraising slows. That combination of quality indicators and execution risk can make Foresight a candidate for closer review in a balance sheet and fundamentals screen.

Foresight Group Holdings blends high reported margins, real assets exposure and a modest P/E that hints at an overlooked growth story. See how analyst forecasts for Foresight Group Holdings stack up against performance fee reliance and policy risk that could flip the script.

Seeking Fresh Alternatives Before They Fly

Markets move fast and the best breakout stories rarely stay under the radar for long. Scan these fresh stock ideas before the momentum gets fully caught by the crowd and consider your options.

• Spot companies building real traction in digital assets by reviewing the 20 cryptocurrency and blockchain stocks while the theme is still relatively under the radar.
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• Look at future facing infrastructure players with the 36 power grid technology and infrastructure stocks while demand for grid upgrades is developing and candidates can still be evaluated carefully.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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