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 81 industry peers in the Professional Services industry. RELX has an excellent profitability rating, 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.
RELX had positive earnings in each of the past 5 years.
In the past 5 years RELX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.78%, RELX belongs to the top of the industry, outperforming 86.42% of the companies in the same industry.
The Return On Equity of RELX (55.56%) is better than 92.59% of its industry peers.
RELX has a better Return On Invested Capital (21.31%) than 93.83% 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 12.53%.
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's Profit Margin of 20.50% is amongst the best of the industry. RELX outperforms 91.36% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
RELX's Operating Margin of 29.87% is amongst the best of the industry. RELX outperforms 96.30% of its industry peers.
RELX's Operating Margin has improved in the last couple of years.
The Gross Margin of RELX (65.02%) is better than 77.78% of its industry peers.
RELX's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, RELX has less shares outstanding
Compared to 1 year ago, RELX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.86 indicates that RELX is not in any danger for bankruptcy at the moment.
RELX's Altman-Z score of 4.86 is amongst the best of the industry. RELX outperforms 82.72% of its industry peers.
RELX has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as RELX would need 3.08 years to pay back of all of its debts.
The Debt to FCF ratio of RELX (3.08) is better than 61.73% 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.
The Debt to Equity ratio of RELX (1.69) is worse than 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.86 |
ROIC/WACC2.41
WACC8.85%
2.3 Liquidity
A Current Ratio of 0.52 indicates that RELX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.52, RELX is doing worse than 93.83% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that RELX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.47, RELX is doing worse than 93.83% of the companies in the same industry.
| 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.
Measured over the past 5 years, RELX shows a small growth in Earnings Per Share. The EPS has been growing by 5.94% on average per year.
RELX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.98%.
The Revenue has been growing slightly by 3.68% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.06% on average over the next years. This is quite good.
Based on estimates for the next years, RELX will show a small growth in Revenue. The Revenue will grow by 5.52% on average per year.
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
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.
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
A Price/Earnings ratio of 37.20 indicates a quite expensive valuation of RELX.
Based on the Price/Earnings ratio, RELX is valued a bit more expensive than 62.96% of the companies in the same industry.
RELX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.45.
RELX is valuated quite expensively with a Price/Forward Earnings ratio of 28.00.
RELX's Price/Forward Earnings ratio is in line with the industry average.
RELX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.2 | ||
| Fwd PE | 28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RELX is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as RELX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.62 | ||
| EV/EBITDA | 21.4 |
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.
RELX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)6.27
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.05, RELX pays a better dividend. On top of this RELX pays more dividend than 82.72% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, RELX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of RELX is nicely growing with an annual growth rate of 6.76%!
RELX has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RELX decreased in the last 3 years.
Dividend Growth(5Y)6.76%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
57.96% of the earnings are spent on dividend by RELX. 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%
53.19
+0.55 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.82%
Inst Owner Change-56.13%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap97.41B
Analysts80.83
Price Target61.38 (15.4%)
Short Float %0.06%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend0.84
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)-0.84%
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 | 37.2 | ||
| Fwd PE | 28 | ||
| P/S | 7.57 | ||
| P/FCF | 33.62 | ||
| P/OCF | 27.38 | ||
| P/B | 20.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.4 |
EPS(TTM)1.43
EY2.69%
EPS(NY)1.9
Fwd EY3.57%
FCF(TTM)1.58
FCFY2.97%
OCF(TTM)1.94
OCFY3.65%
SpS7.03
BVpS2.59
TBVpS-5.88
PEG (NY)3.61
PEG (5Y)6.27
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 | 4.86 |
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%