This is why I am investing in shares of Moneysupermarket for my ISA in 2020

first_img James J. McCombie owns shares in The Motley Fool UK has recommended Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares This is why I am investing in shares of Moneysupermarket for my ISA in 2020 I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. James J. McCombie | Monday, 6th January, 2020 | More on: MONY Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by James J. McCombie Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” Whatever 2020 brings, people will still need to heat their homes, insure their cars, and hold money in savings accounts. They will want the best deal possible for such services, which should mean price and benefit comparison websites will get a lot of visits.Moneysupermarket.Com Group (LSE: MONY) operates comparison websites for prices of holidays, energy, and insurance, among other things. I think shares in it could do well in 2020 and beyond.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Clicking awayMoneysupermarket has grown its revenues in each of the last five full years, from £248m in 2014 to £356m in 2018. Revenue for the latest half-year (up to June 2019) was 5% higher than the one before. Expectations are that full-year 2019 sales figures, due sometime in February, will better the 2018 ones.Operating profits have grown faster than revenues from 2014 to 2018 because expenses have been growing slower than revenues. The operating profit margin of 30% for 2018, up from 26% in 2014, demonstrates the efficiency of the company’s cost structure.Moneysupermarket has less than 50p of debt for every £1 of equity. Low leverage is good because it means things would have to get very tough before the company struggled to make its interest payments.Paying relatively little interest, but deducting some for tax purposes, means the bulk of operating profits get reported as earnings. Shareholders got a healthy 43% return on their equity in the company for 2018.Earnings per share have grown by 13.8% per year on average from 2014 to 2018. Strong growth here means that after necessary reinvestment, there is cash to be returned to shareholders as dividends.Moneysupermarket grew its dividend by 9.16% each year on average from 7.43p per share in 2014 to 10.55p in 2018. The 2018 dividend was covered 1.53 times by earnings, and almost twice by cash flow from operating activities, meaning dividends are at least reasonably protected.Refresh the pageMoneysupermarket’s history is impressive, but you buy shares in a company’s future. I believe that this company can continue to deliver.It has well-known and well-liked brands. The core MoneySuperMarket brand helps consumers save money on household bills, TravelSupermarket helps them save on holidays, and MoneySavingExpert fights the consumers’ corner in finance. The recent acquisition of Decision Tech adds consumer home and mobile communication price comparison services to Moneysupermarket’s skill set. Decision Tech has been growing its revenues by about 30% each year and also forms part of a push into business-to-business comparison services.Mortgage comparisons for consumers are on their way, and credit scoring has been introduced for MoneySuperMarket users. Marketing and advertising spending increased over the first half of 2019, as part of a rebranding and awareness push, which should lift revenues down the line.Compares wellShares in Moneysupermarket cost around 330p right now. The trailing 12-month dividend yield and price-to-earnings ratio are 3.4% and 19, respectively. The FTSE 250 index, of which Moneysupermarket is a member, yields a little under 3% and has a price-to-earnings ratio of 22.Shares in Moneysupermarket are both cheaper and yield more than the index right now. If dividends continue to increase, that yield will grow. I think the shares are a bit of a bargain and have snapped up a few. last_img read more