RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
NYSE:RELX - New York Stock Exchange, Inc. - US7595301083 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to RELX. RELX was compared to 82 industry peers in the Professional Services industry. While RELX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RELX 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 RELX was profitable.
In the past year RELX had a positive cash flow from operations.
RELX had positive earnings in each of the past 5 years.
Each year in the past 5 years RELX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.78%, RELX belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
RELX's Return On Equity of 55.56% is amongst the best of the industry. RELX outperforms 92.68% of its industry peers.
RELX has a Return On Invested Capital of 21.31%. This is amongst the best in the industry. RELX outperforms 95.12% of its industry peers.
RELX had an Average Return On Invested Capital over the past 3 years of 19.62%. This is significantly above the industry average of 12.28%.
The 3 year average ROIC (19.62%) for RELX is below the current ROIC(21.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 55.56% | ||
| ROIC | 21.31% |
ROA(3y)11.68%
ROA(5y)10.86%
ROE(3y)50.1%
ROE(5y)50.83%
ROIC(3y)19.62%
ROIC(5y)17.26%
1.3 Margins
RELX has a Profit Margin of 20.50%. This is amongst the best in the industry. RELX outperforms 91.46% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
The Operating Margin of RELX (29.87%) is better than 96.34% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
With a decent Gross Margin value of 65.02%, RELX is doing good in the industry, outperforming 76.83% of the companies in the same industry.
In the last couple of years the Gross Margin of RELX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.87% | ||
| PM (TTM) | 20.5% | ||
| GM | 65.02% |
OM growth 3Y5.02%
OM growth 5Y2.69%
PM growth 3Y0.32%
PM growth 5Y1.41%
GM growth 3Y0.2%
GM growth 5Y0%
2. Health
2.1 Basic Checks
RELX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
RELX has less shares outstanding than it did 1 year ago.
RELX has less shares outstanding than it did 5 years ago.
RELX has a better debt/assets ratio than last year.
2.2 Solvency
RELX has an Altman-Z score of 4.95. This indicates that RELX is financially healthy and has little risk of bankruptcy at the moment.
RELX's Altman-Z score of 4.95 is amongst the best of the industry. RELX outperforms 82.93% of its industry peers.
The Debt to FCF ratio of RELX is 3.08, which is a good value as it means it would take RELX, 3.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RELX (3.08) is better than 62.20% of its industry peers.
A Debt/Equity ratio of 1.69 is on the high side and indicates that RELX has dependencies on debt financing.
RELX has a worse Debt to Equity ratio (1.69) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.95 |
ROIC/WACC2.41
WACC8.85%
2.3 Liquidity
RELX has a Current Ratio of 0.52. This is a bad value and indicates that RELX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.52, RELX is doing worse than 93.90% of the companies in the same industry.
RELX has a Quick Ratio of 0.52. This is a bad value and indicates that RELX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RELX (0.47) is worse than 93.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.08% over the past year.
RELX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
RELX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.98%.
Measured over the past years, RELX shows a small growth in Revenue. The Revenue has been growing by 3.68% on average per year.
EPS 1Y (TTM)10.08%
EPS 3Y10.76%
EPS 5Y5.94%
EPS Q2Q%6.12%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.81%
3.2 Future
RELX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.06% yearly.
The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.06%
Revenue Next Year4.92%
Revenue Next 2Y6.06%
Revenue Next 3Y5.99%
Revenue Next 5Y5.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
RELX is valuated quite expensively with a Price/Earnings ratio of 37.52.
64.63% of the companies in the same industry are cheaper than RELX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.50. RELX is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 28.36, which means the current valuation is very expensive for RELX.
RELX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RELX is more expensive than 62.20% of the companies in the same industry.
RELX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.52 | ||
| Fwd PE | 28.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RELX.
RELX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.05 | ||
| EV/EBITDA | 21.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RELX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.64
PEG (5Y)6.32
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, RELX has a reasonable but not impressive dividend return.
RELX's Dividend Yield is rather good when compared to the industry average which is at 2.07. RELX pays more dividend than 80.49% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, RELX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of RELX is nicely growing with an annual growth rate of 6.76%!
RELX has paid a dividend for at least 10 years, which is a reliable track record.
RELX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.76%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
RELX pays out 57.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
RELX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP57.96%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
52.9
-0.57 (-1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.82%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap96.88B
Analysts80.83
Price Target61.38 (16.03%)
Short Float %0.06%
Short Ratio1.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend0.83
Dividend Growth(5Y)6.76%
DP57.96%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.02%
PT rev (3m)1.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.52 | ||
| Fwd PE | 28.36 | ||
| P/S | 7.67 | ||
| P/FCF | 34.05 | ||
| P/OCF | 27.73 | ||
| P/B | 20.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.87 |
EPS(TTM)1.41
EY2.67%
EPS(NY)1.87
Fwd EY3.53%
FCF(TTM)1.55
FCFY2.94%
OCF(TTM)1.91
OCFY3.61%
SpS6.9
BVpS2.55
TBVpS-5.78
PEG (NY)3.64
PEG (5Y)6.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 55.56% | ||
| ROCE | 29.93% | ||
| ROIC | 21.31% | ||
| ROICexc | 21.56% | ||
| ROICexgc | N/A | ||
| OM | 29.87% | ||
| PM (TTM) | 20.5% | ||
| GM | 65.02% | ||
| FCFM | 22.51% |
ROA(3y)11.68%
ROA(5y)10.86%
ROE(3y)50.1%
ROE(5y)50.83%
ROIC(3y)19.62%
ROIC(5y)17.26%
ROICexc(3y)19.99%
ROICexc(5y)17.54%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.52%
ROCE(5y)23.2%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y14.95%
ROICexc growth 5Y2.9%
OM growth 3Y5.02%
OM growth 5Y2.69%
PM growth 3Y0.32%
PM growth 5Y1.41%
GM growth 3Y0.2%
GM growth 5Y0%
F-Score9
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 61.81% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 10.97 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 109.82% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 4.95 |
F-Score9
WACC8.85%
ROIC/WACC2.41
Cap/Depr(3y)59.17%
Cap/Depr(5y)53.4%
Cap/Sales(3y)5.14%
Cap/Sales(5y)5.04%
Profit Quality(3y)113.75%
Profit Quality(5y)111.24%
High Growth Momentum
Growth
EPS 1Y (TTM)10.08%
EPS 3Y10.76%
EPS 5Y5.94%
EPS Q2Q%6.12%
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.06%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.81%
Revenue Next Year4.92%
Revenue Next 2Y6.06%
Revenue Next 3Y5.99%
Revenue Next 5Y5.52%
EBIT growth 1Y6.9%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year26.45%
EBIT Next 3Y13.05%
EBIT Next 5Y11.07%
FCF growth 1Y7.27%
FCF growth 3Y8.15%
FCF growth 5Y4.44%
OCF growth 1Y6.15%
OCF growth 3Y8.96%
OCF growth 5Y4.54%