RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RELX - US7595301083 - ADR
40.73 USD
+0.08 (+0.2%)
40.73 USD
0 (0%)
Taking everything into account, RELX scores 6 out of 10 in our fundamental rating. RELX was compared to 87 industry peers in the Professional Services industry. RELX has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, RELX is valued expensive at the moment.
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.
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
The Return On Assets of RELX (13.44%) is better than 88.51% of its industry peers.
RELX has a Return On Equity of 88.30%. This is amongst the best in the industry. RELX outperforms 97.70% of its industry peers.
RELX has a Return On Invested Capital of 26.28%. This is amongst the best in the industry. RELX outperforms 95.40% of its industry peers.
RELX had an Average Return On Invested Capital over the past 3 years of 19.85%. This is significantly above the industry average of 11.98%.
The 3 year average ROIC (19.85%) for RELX 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
RELX's Profit Margin of 20.19% is amongst the best of the industry. RELX outperforms 88.51% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
RELX's Operating Margin of 30.63% is amongst the best of the industry. RELX outperforms 97.70% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
The Gross Margin of RELX (65.48%) is better than 79.31% 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 | 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), RELX 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.
The debt/assets ratio for RELX has been reduced compared to a year ago.
2.2 Solvency
RELX has an Altman-Z score of 3.99. This indicates that RELX is financially healthy and has little risk of bankruptcy at the moment.
RELX has a Altman-Z score of 3.99. This is in the better half of the industry: RELX outperforms 77.01% of its industry peers.
RELX has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as RELX would need 3.34 years to pay back of all of its debts.
RELX has a Debt to FCF ratio of 3.34. This is in the better half of the industry: RELX outperforms 65.52% of its industry peers.
RELX has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RELX (2.57) is worse than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 3.99 |
ROIC/WACC2.98
WACC8.82%
2.3 Liquidity
RELX has a Current Ratio of 0.47. 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 has a Current ratio of 0.47. This is amonst the worse of the industry: RELX underperforms 89.66% of its industry peers.
RELX has a Quick Ratio of 0.47. This is a bad value and indicates that RELX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.42, RELX is not doing good in the industry: 90.80% of the companies in the same industry are doing better.
| 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.
RELX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.93% yearly.
Looking at the last year, RELX shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
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)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
RELX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
Based on estimates for the next years, RELX will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y6.9%
EPS Next 2Y8.55%
EPS Next 3Y8.79%
EPS Next 5Y9.23%
Revenue Next Year2%
Revenue Next 2Y4.27%
Revenue Next 3Y4.97%
Revenue Next 5Y6.01%
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
RELX is valuated quite expensively with a Price/Earnings ratio of 28.68.
The rest of the industry has a similar Price/Earnings ratio as RELX.
When comparing the Price/Earnings ratio of RELX to the average of the S&P500 Index (26.38), we can say RELX is valued inline with the index average.
A Price/Forward Earnings ratio of 20.45 indicates a rather expensive valuation of RELX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RELX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, RELX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 20.45 |
4.2 Price Multiples
RELX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RELX is valued a bit cheaper than the industry average as 64.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.5 | ||
| EV/EBITDA | 20.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RELX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of RELX may justify a higher PE ratio.
PEG (NY)4.16
PEG (5Y)4.84
EPS Next 2Y8.55%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 2.14%.
RELX's Dividend Yield is rather good when compared to the industry average which is at 1.55. RELX pays more dividend than 82.76% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, RELX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
On average, the dividend of RELX grows each year by 6.11%, which is quite nice.
RELX has been paying a dividend for at least 10 years, so it has a reliable track record.
RELX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
60.42% of the earnings are spent on dividend by RELX. This is not a sustainable payout ratio.
The dividend of RELX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.42%
EPS Next 2Y8.55%
EPS Next 3Y8.79%
40.73
+0.08 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners59.82%
Inst Owner Change-3.19%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap74.09B
Revenue(TTM)9.53B
Net Income(TTM)1.93B
Analysts81.74
Price Target55.54 (36.36%)
Short Float %0.12%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend0.75
Dividend Growth(5Y)6.11%
DP60.42%
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)0.5%
PT rev (3m)-9.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 20.45 | ||
| P/S | 5.8 | ||
| P/FCF | 24.5 | ||
| P/OCF | 20.01 | ||
| P/B | 25.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.88 |
EPS(TTM)1.42
EY3.49%
EPS(NY)1.99
Fwd EY4.89%
FCF(TTM)1.66
FCFY4.08%
OCF(TTM)2.04
OCFY5%
SpS7.02
BVpS1.61
TBVpS-6.37
PEG (NY)4.16
PEG (5Y)4.84
Graham Number7.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 88.3% | ||
| ROCE | 34.15% | ||
| ROIC | 26.28% | ||
| ROICexc | 26.95% | ||
| ROICexgc | N/A | ||
| OM | 30.63% | ||
| PM (TTM) | 20.19% | ||
| GM | 65.48% | ||
| FCFM | 23.67% |
ROA(3y)11.68%
ROA(5y)10.86%
ROE(3y)50.1%
ROE(5y)50.83%
ROIC(3y)19.85%
ROIC(5y)17.4%
ROICexc(3y)20.23%
ROICexc(5y)17.68%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.83%
ROCE(5y)23.39%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y15.54%
ROICexc growth 5Y3.21%
OM growth 3Y5.55%
OM growth 5Y3%
PM growth 3Y0.32%
PM growth 5Y1.41%
GM growth 3Y0.2%
GM growth 5Y0%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 683.78% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 10.62 | ||
| Cash Conversion | 92.28% | ||
| Profit Quality | 117.25% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 3.99 |
F-Score7
WACC8.82%
ROIC/WACC2.98
Cap/Depr(3y)357.8%
Cap/Depr(5y)232.58%
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)4%
EPS 3Y10.74%
EPS 5Y5.93%
EPS Q2Q%6.72%
EPS Next Y6.9%
EPS Next 2Y8.55%
EPS Next 3Y8.79%
EPS Next 5Y9.23%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2%
Revenue Next 2Y4.27%
Revenue Next 3Y4.97%
Revenue Next 5Y6.01%
EBIT growth 1Y4.1%
EBIT growth 3Y15.27%
EBIT growth 5Y6.79%
EBIT Next Year23.71%
EBIT Next 3Y12.25%
EBIT Next 5Y11.07%
FCF growth 1Y13.08%
FCF growth 3Y8.15%
FCF growth 5Y4.44%
OCF growth 1Y12%
OCF growth 3Y8.96%
OCF growth 5Y4.54%
RELX PLC - SPON ADR / RELX FAQ
What is the ChartMill fundamental rating of RELX PLC - SPON ADR (RELX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RELX.
What is the valuation status for RELX stock?
ChartMill assigns a valuation rating of 3 / 10 to RELX PLC - SPON ADR (RELX). This can be considered as Overvalued.
Can you provide the profitability details for RELX PLC - SPON ADR?
RELX PLC - SPON ADR (RELX) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for RELX stock?
The Earnings per Share (EPS) of RELX PLC - SPON ADR (RELX) is expected to grow by 6.9% in the next year.
How sustainable is the dividend of RELX PLC - SPON ADR (RELX) stock?
The dividend rating of RELX PLC - SPON ADR (RELX) is 5 / 10 and the dividend payout ratio is 60.42%.