Rightmove Stock And Two High ROE Shares For Higher Rates

Global inflation readings are sending mixed signals, and many central banks are keeping interest rates higher for longer. That puts pressure on weaker balance sheets and rewards companies that already earn strong returns on equity and carry solid fundamentals. This article walks through three stocks from the Solid Balance Sheet and Fundamentals screener so you can see how quality focused businesses might respond in this kind of rate backdrop.

The three stocks highlighted below are just a sample, and the full screen surfaced 17 more companies with similarly strong returns on equity and balance sheets that are not covered here. To identify and analyze those additional opportunities with the same quality filters, head straight into the Solid Balance Sheet and Fundamentals screener.

Fonix (AIM:FNX)

Fonix is a London based provider of mobile payments, carrier billing and messaging technology that helps media, charity, gaming and e-mobility clients collect payments and run campaigns directly through users’ phones. The company generated about £76 million in revenue from facilitating mobile payments and messaging, with most of that coming from the United Kingdom and the rest from elsewhere in Europe. Fonix currently has a market cap of roughly £163 million, which puts it firmly in the small cap bracket.

Fonix may appeal to investors who want a specialist payments business with strong profitability and return on equity, priced below an independent cash flow estimate and some analyst targets. The company earns high net margins and a high level of ROE, which points to an efficient use of capital. However, its reliance on external borrowing for funding adds a layer of risk that cannot be ignored. Board independence is also on the weaker side, even if director and management tenure suggests a seasoned team with aligned pay levels. With results for the 2026 financial year due on 22 September 2026, some investors may view this as a stock where the combination of quality metrics and upcoming newsflow keeps it on watchlists.

Fonix’s high margins and ROE hint at a stronger story than its small cap label suggests, especially if borrowing risk is properly priced. Get the full picture in the DCF valuation analysis for Fonix

Build your own high-ROE shortlist

Fonix and the two other stocks in this list came from a single quality focused screener, but the real value is in setting your own rules. Use our flexible Screener to combine metrics like valuation, balance sheet strength and risks into a custom watchlist, or tap into our curated Investing Ideas for ready made starting points.

Rightmove (LSE:RMV)

Rightmove runs the UK’s largest online property portal, connecting home buyers, renters and investors with estate agents, developers and other property professionals, and also offering mortgages, rental services and data products. Most of its revenue comes from estate agency listings at about £318 million, with new homes advertising contributing around £76 million and other services such as commercial and overseas listings, non property ads and mortgages adding roughly £45 million. The company currently has a market value of about £3.6b.

Rightmove stands out for its very high net margins, strong engagement with both consumers and agents, and a growing mix of higher value products, all backed by an active buyback program and a higher interim dividend in 2026. At the same time, you need to weigh that strength against clear risks, including heavy reliance on the UK housing cycle, tougher competition from rival portals and an earnings outlook that depends on keeping churn in check while lifting revenue per advertiser. If you want to see how those trade offs line up with current analyst expectations and valuation signals, the full story on Rightmove gets more interesting the closer you look at the numbers and recent guidance tweaks.

Rightmove’s rich margins and customer stickiness can either justify today’s pricing or mask a tougher cycle ahead. Get the story behind that trade off in the 4 key rewards and 1 important warning sign

Foresight Group Holdings (LSE:FSG)

Foresight Group Holdings is a London based manager of real assets and private equity funds, giving investors access to infrastructure, renewable energy projects and smaller private companies across several regions. The business is heavily weighted to Real Assets, which generated about £114.8 million of revenue, with Private Equity contributing roughly £50.1 million. The stock sits in the mid cap bracket with a market value of around £551.2 million.

Foresight Group Holdings provides exposure to energy transition and infrastructure themes through a manager that reports a 47.8% return on equity and a 27.7% net margin, supported by double digit earnings and revenue growth forecasts and a stream of new funds and products. At the same time, investors need to be comfortable with funding that relies entirely on external borrowings, competition from larger asset managers and regulators paying close attention to ESG and fee structures. Alongside an ongoing buyback programme and a recent board refresh, this creates a business where strong fundamentals sit alongside execution and policy risk, which is one reason some investors may want to look more closely at what Foresight is building.

Foresight Group Holdings sits at the intersection of real assets, private equity and energy transition themes, yet many investors may still be missing how its reported 47.8% ROE and 27.7% net margin fit together with new products and policy risk. Get the missing context in the analysis report for Foresight Group Holdings

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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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