RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
NYSE:RELX - New York Stock Exchange, Inc. - US7595301083 - ADR
Taking everything into account, RELX scores 6 out of 10 in our fundamental rating. RELX was compared to 82 industry peers in the Professional Services industry. RELX scores excellent on profitability, but 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
RELX had positive earnings in the past year.
In the past year RELX had a positive cash flow from operations.
In the past 5 years RELX has always been profitable.
RELX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RELX has a Return On Assets of 12.86%. This is amongst the best in the industry. RELX outperforms 88.61% of its industry peers.
Looking at the Return On Equity, with a value of 58.90%, RELX belongs to the top of the industry, outperforming 92.41% of the companies in the same industry.
The Return On Invested Capital of RELX (23.43%) is better than 89.87% of its industry peers.
RELX had an Average Return On Invested Capital over the past 3 years of 17.33%. This is above the industry average of 13.48%.
The last Return On Invested Capital (23.43%) for RELX is above the 3 year average (17.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 58.9% | ||
| ROIC | 23.43% |
ROA(3y)10.96%
ROA(5y)10.49%
ROE(3y)46.75%
ROE(5y)53.61%
ROIC(3y)17.33%
ROIC(5y)16.81%
1.3 Margins
Looking at the Profit Margin, with a value of 20.34%, RELX belongs to the top of the industry, outperforming 93.67% of the companies in the same industry.
In the last couple of years the Profit Margin of RELX has remained more or less at the same level.
RELX has a Operating Margin of 29.67%. This is amongst the best in the industry. RELX outperforms 94.94% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
RELX has a Gross Margin of 65.31%. This is in the better half of the industry: RELX outperforms 75.95% of its industry peers.
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 | 29.67% | ||
| PM (TTM) | 20.34% | ||
| GM | 65.31% |
OM growth 3Y5.18%
OM growth 5Y2.22%
PM growth 3Y4.14%
PM growth 5Y0.48%
GM growth 3Y-0.06%
GM growth 5Y0.06%
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.
The number of shares outstanding for RELX has been reduced compared to 1 year ago.
RELX has less shares outstanding than it did 5 years ago.
RELX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.03 indicates that RELX is not in any danger for bankruptcy at the moment.
RELX has a Altman-Z score of 5.03. This is amongst the best in the industry. RELX outperforms 83.54% of its industry peers.
RELX has a debt to FCF ratio of 3.39. This is a good value and a sign of high solvency as RELX would need 3.39 years to pay back of all of its debts.
The Debt to FCF ratio of RELX (3.39) is better than 60.76% of its industry peers.
RELX has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
RELX's Debt to Equity ratio of 1.61 is on the low side compared to the rest of the industry. RELX is outperformed by 84.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 5.03 |
ROIC/WACC2.72
WACC8.6%
2.3 Liquidity
RELX has a Current Ratio of 0.48. This is a bad value and indicates that RELX is not financially healthy enough and could expect problems in meeting its short term obligations.
RELX's Current ratio of 0.48 is on the low side compared to the rest of the industry. RELX is outperformed by 93.67% of its industry peers.
A Quick Ratio of 0.42 indicates that RELX may have some problems paying its short term obligations.
RELX has a worse Quick ratio (0.42) than 94.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
RELX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.49%.
RELX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
Looking at the last year, RELX shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
Measured over the past years, RELX shows a small growth in Revenue. The Revenue has been growing by 4.10% on average per year.
EPS 1Y (TTM)5.49%
EPS 3Y12.48%
EPS 5Y6.12%
EPS Q2Q%5.87%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y8.82%
Revenue growth 5Y4.1%
Sales Q2Q%3.16%
3.2 Future
The Earnings Per Share is expected to grow by 9.61% on average over the next years. This is quite good.
RELX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y8.88%
EPS Next 2Y8.83%
EPS Next 3Y9.24%
EPS Next 5Y9.61%
Revenue Next Year3.83%
Revenue Next 2Y4.66%
Revenue Next 3Y5.38%
Revenue Next 5Y6.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.22, which means the current valuation is very expensive for RELX.
Compared to the rest of the industry, the Price/Earnings ratio of RELX indicates a slightly more expensive valuation: RELX is more expensive than 63.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RELX to the average of the S&P500 Index (27.96), we can say RELX is valued inline with the index average.
A Price/Forward Earnings ratio of 28.82 indicates a quite expensive valuation of RELX.
63.29% of the companies in the same industry are cheaper than RELX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.11. RELX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.22 | ||
| Fwd PE | 28.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RELX is valued a bit more expensive than the industry average as 62.03% of the companies are valued more cheaply.
RELX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.67 | ||
| EV/EBITDA | 22.57 |
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)3.74
PEG (5Y)5.43
EPS Next 2Y8.83%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, 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 1.82. RELX pays more dividend than 82.28% of the companies in the same industry.
RELX's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of RELX is nicely growing with an annual growth rate of 6.84%!
RELX has paid a dividend for at least 10 years, which is a reliable track record.
RELX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.84%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
RELX pays out 58.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
RELX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.3%
EPS Next 2Y8.83%
EPS Next 3Y9.24%
RELX PLC - SPON ADR
NYSE:RELX (1/17/2025, 8:24:11 PM)
After market: 48.17 0 (0%)48.17
+0.26 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.76%
Inst Owner Change-0.36%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap89.39B
Analysts80.87
Price Target51.32 (6.54%)
Short Float %0.09%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.56
Dividend Growth(5Y)6.84%
DP58.3%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-2.02%
PT rev (3m)-4.7%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.22 | ||
| Fwd PE | 28.82 | ||
| P/S | 7.88 | ||
| P/FCF | 35.67 | ||
| P/OCF | 28.89 | ||
| P/B | 22.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.57 |
EPS(TTM)1.45
EY3.01%
EPS(NY)1.67
Fwd EY3.47%
FCF(TTM)1.35
FCFY2.8%
OCF(TTM)1.67
OCFY3.46%
SpS6.11
BVpS2.11
TBVpS-5.3
PEG (NY)3.74
PEG (5Y)5.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 58.9% | ||
| ROCE | 30.21% | ||
| ROIC | 23.43% | ||
| ROICexc | 23.8% | ||
| ROICexgc | N/A | ||
| OM | 29.67% | ||
| PM (TTM) | 20.34% | ||
| GM | 65.31% | ||
| FCFM | 22.09% |
ROA(3y)10.96%
ROA(5y)10.49%
ROE(3y)46.75%
ROE(5y)53.61%
ROIC(3y)17.33%
ROIC(5y)16.81%
ROICexc(3y)17.68%
ROICexc(5y)17.1%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)22.7%
ROCE(5y)22.47%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y16.42%
ROICexc growth 5Y5.86%
OM growth 3Y5.18%
OM growth 5Y2.22%
PM growth 3Y4.14%
PM growth 5Y0.48%
GM growth 3Y-0.06%
GM growth 5Y0.06%
F-Score9
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 3.39 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 61.14% | ||
| Cap/Sales | 5.19% | ||
| Interest Coverage | 9.17 | ||
| Cash Conversion | 71.49% | ||
| Profit Quality | 108.62% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 5.03 |
F-Score9
WACC8.6%
ROIC/WACC2.72
Cap/Depr(3y)54.08%
Cap/Depr(5y)52.16%
Cap/Sales(3y)4.99%
Cap/Sales(5y)4.97%
Profit Quality(3y)115.19%
Profit Quality(5y)111.99%
High Growth Momentum
Growth
EPS 1Y (TTM)5.49%
EPS 3Y12.48%
EPS 5Y6.12%
EPS Q2Q%5.87%
EPS Next Y8.88%
EPS Next 2Y8.83%
EPS Next 3Y9.24%
EPS Next 5Y9.61%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y8.82%
Revenue growth 5Y4.1%
Sales Q2Q%3.16%
Revenue Next Year3.83%
Revenue Next 2Y4.66%
Revenue Next 3Y5.38%
Revenue Next 5Y6.42%
EBIT growth 1Y10.09%
EBIT growth 3Y14.46%
EBIT growth 5Y6.41%
EBIT Next Year24.45%
EBIT Next 3Y12.25%
EBIT Next 5Y9.78%
FCF growth 1Y21.81%
FCF growth 3Y17.07%
FCF growth 5Y4.06%
OCF growth 1Y22.85%
OCF growth 3Y15.47%
OCF growth 5Y4.36%