RELX PLC (RDEB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RDEB - GB00B2B0DG97 - Common Stock
31.32 EUR
-0.2 (-0.63%)
Overall RDEB gets a fundamental rating of 6 out of 10. We evaluated RDEB against 36 industry peers in the Professional Services industry. RDEB has an excellent profitability rating, but there are some minor concerns on its financial health. RDEB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year RDEB was profitable.
- In the past year RDEB had a positive cash flow from operations.
- In the past 5 years RDEB has always been profitable.
- RDEB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.44%, RDEB belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
- RDEB's Return On Equity of 88.30% is amongst the best of the industry. RDEB outperforms 91.67% of its industry peers.
- With an excellent Return On Invested Capital value of 26.28%, RDEB belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for RDEB is significantly above the industry average of 11.62%.
- The 3 year average ROIC (19.85%) for RDEB is below the current ROIC(26.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 88.3% | ||
| ROIC | 26.28% |
ROA(3y)11.68%
ROA(5y)10.86%
ROE(3y)50.1%
ROE(5y)50.83%
ROIC(3y)19.85%
ROIC(5y)17.4%
1.3 Margins
- With an excellent Profit Margin value of 20.19%, RDEB belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
- RDEB's Profit Margin has been stable in the last couple of years.
- RDEB has a better Operating Margin (30.63%) than 97.22% of its industry peers.
- In the last couple of years the Operating Margin of RDEB has grown nicely.
- Looking at the Gross Margin, with a value of 65.48%, RDEB is in line with its industry, outperforming 58.33% of the companies in the same industry.
- RDEB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.63% | ||
| PM (TTM) | 20.19% | ||
| GM | 65.48% |
OM growth 3Y5.55%
OM growth 5Y3%
PM growth 3Y0.32%
PM growth 5Y1.41%
GM growth 3Y0.2%
GM growth 5Y0%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RDEB is creating value.
- Compared to 1 year ago, RDEB has less shares outstanding
- The number of shares outstanding for RDEB has been reduced compared to 5 years ago.
- RDEB has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.72 indicates that RDEB is not in any danger for bankruptcy at the moment.
- RDEB has a better Altman-Z score (3.72) than 83.33% of its industry peers.
- RDEB has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as RDEB would need 3.34 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.34, RDEB is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- RDEB has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
- RDEB's Debt to Equity ratio of 2.57 is on the low side compared to the rest of the industry. RDEB is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 3.72 |
ROIC/WACC3.03
WACC8.68%
2.3 Liquidity
- RDEB has a Current Ratio of 0.47. This is a bad value and indicates that RDEB is not financially healthy enough and could expect problems in meeting its short term obligations.
- RDEB's Current ratio of 0.47 is on the low side compared to the rest of the industry. RDEB is outperformed by 83.33% of its industry peers.
- A Quick Ratio of 0.42 indicates that RDEB may have some problems paying its short term obligations.
- RDEB's Quick ratio of 0.42 is on the low side compared to the rest of the industry. RDEB is outperformed by 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.00% over the past year.
- The Earnings Per Share has been growing slightly by 5.93% on average over the past years.
- Looking at the last year, RDEB shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
- RDEB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.68% yearly.
EPS 1Y (TTM)4%
EPS 3Y10.74%
EPS 5Y5.93%
EPS Q2Q%6.72%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
3.2 Future
- RDEB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.69% yearly.
- Based on estimates for the next years, RDEB will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y7.19%
EPS Next 2Y8.64%
EPS Next 3Y8.79%
EPS Next 5Y8.69%
Revenue Next Year1.95%
Revenue Next 2Y4.25%
Revenue Next 3Y4.96%
Revenue Next 5Y5.48%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- RDEB is valuated quite expensively with a Price/Earnings ratio of 26.10.
- RDEB's Price/Earnings ratio is in line with the industry average.
- RDEB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 18.63, which indicates a rather expensive current valuation of RDEB.
- RDEB's Price/Forward Earnings is on the same level as the industry average.
- RDEB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RDEB indicates a slightly more expensive valuation: RDEB is more expensive than 61.11% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as RDEB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.88 | ||
| EV/EBITDA | 19.05 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of RDEB may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)4.4
EPS Next 2Y8.64%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
- RDEB has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
- RDEB's Dividend Yield is comparable with the industry average which is at 2.39.
- RDEB's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
- The dividend of RDEB is nicely growing with an annual growth rate of 6.11%!
Dividend Growth(5Y)6.11%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- RDEB pays out 60.42% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of RDEB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.42%
EPS Next 2Y8.64%
EPS Next 3Y8.79%
RELX PLC / RDEB.DE FAQ
What is the ChartMill fundamental rating of RELX PLC (RDEB.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RDEB.DE.
What is the valuation status for RDEB stock?
ChartMill assigns a valuation rating of 3 / 10 to RELX PLC (RDEB.DE). This can be considered as Overvalued.
How profitable is RELX PLC (RDEB.DE) stock?
RELX PLC (RDEB.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for RDEB stock?
The Price/Earnings (PE) ratio for RELX PLC (RDEB.DE) is 26.1 and the Price/Book (PB) ratio is 22.65.
What is the financial health of RELX PLC (RDEB.DE) stock?
The financial health rating of RELX PLC (RDEB.DE) is 5 / 10.