RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
NYSE:RELX - New York Stock Exchange, Inc. - US7595301083 - ADR - Currency: USD
Overall RELX gets a fundamental rating of 6 out of 10. We evaluated RELX against 82 industry peers in the Professional Services industry. RELX scores excellent on profitability, 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.
RELX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RELX's Return On Assets of 12.78% is amongst the best of the industry. RELX outperforms 87.34% of its industry peers.
RELX has a better Return On Equity (55.56%) than 92.41% of its industry peers.
With an excellent Return On Invested Capital value of 23.04%, RELX belongs to the best of the industry, outperforming 87.34% of the companies in the same industry.
RELX had an Average Return On Invested Capital over the past 3 years of 20.19%. This is significantly above the industry average of 13.65%.
The 3 year average ROIC (20.19%) for RELX is below the current ROIC(23.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 55.56% | ||
| ROIC | 23.04% |
ROA(3y)11.68%
ROA(5y)10.86%
ROE(3y)50.1%
ROE(5y)50.83%
ROIC(3y)20.19%
ROIC(5y)17.61%
1.3 Margins
RELX has a better Profit Margin (20.50%) than 92.41% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 29.87%, RELX belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
In the last couple of years the Operating Margin of RELX has grown nicely.
RELX has a better Gross Margin (65.02%) than 75.95% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RELX is creating value.
RELX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RELX has less shares outstanding
RELX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.00 indicates that RELX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.00, RELX belongs to the best of the industry, outperforming 82.28% of the companies in the same industry.
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.
RELX has a Debt to FCF ratio of 3.08. This is in the better half of the industry: RELX outperforms 62.03% of its industry peers.
RELX has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
RELX has a worse Debt to Equity ratio (1.47) than 84.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 5 |
ROIC/WACC2.69
WACC8.55%
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.
The Current ratio of RELX (0.52) is worse than 93.67% of its industry peers.
A Quick Ratio of 0.47 indicates that RELX may have some problems paying its short term obligations.
RELX has a worse Quick ratio (0.47) than 93.67% 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 10.09% 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.
Looking at the last year, RELX shows a small growth in Revenue. The Revenue has grown by 2.98% in the last year.
RELX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.68% yearly.
EPS 1Y (TTM)10.09%
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 9.84% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.80% on average over the next years.
EPS Next Y11.1%
EPS Next 2Y11.19%
EPS Next 3Y10.56%
EPS Next 5Y9.84%
Revenue Next Year6.53%
Revenue Next 2Y7.03%
Revenue Next 3Y6.82%
Revenue Next 5Y6.8%
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 37.63, which means the current valuation is very expensive for RELX.
Based on the Price/Earnings ratio, RELX is valued a bit more expensive than 69.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. RELX is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 28.19, RELX can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RELX is valued a bit more expensive than the industry average as 62.03% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.68. RELX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.63 | ||
| Fwd PE | 28.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RELX is valued a bit more expensive than the industry average as 64.56% 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 | 34.1 | ||
| EV/EBITDA | 22.35 |
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)3.39
PEG (5Y)6.34
EPS Next 2Y11.19%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 1.58%.
Compared to an average industry Dividend Yield of 1.93, RELX pays a better dividend. On top of this RELX pays more dividend than 81.01% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.29, 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 been paying a dividend for at least 10 years, so it has a reliable track record.
RELX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.76%
Div Incr Years3
Div Non Decr Years3
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.
The dividend of RELX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.96%
EPS Next 2Y11.19%
EPS Next 3Y10.56%
49.29
-1.12 (-2.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.76%
Inst Owner Change5.42%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap91.32B
Analysts80
Price Target54.63 (10.83%)
Short Float %0.1%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend0.6
Dividend Growth(5Y)6.76%
DP57.96%
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)6.43%
PT rev (3m)1.88%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.63 | ||
| Fwd PE | 28.19 | ||
| P/S | 7.68 | ||
| P/FCF | 34.1 | ||
| P/OCF | 27.77 | ||
| P/B | 20.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.35 |
EPS(TTM)1.31
EY2.66%
EPS(NY)1.75
Fwd EY3.55%
FCF(TTM)1.45
FCFY2.93%
OCF(TTM)1.77
OCFY3.6%
SpS6.42
BVpS2.37
TBVpS-5.38
PEG (NY)3.39
PEG (5Y)6.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 55.56% | ||
| ROCE | 29.93% | ||
| ROIC | 23.04% | ||
| ROICexc | 23.33% | ||
| 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)20.19%
ROIC(5y)17.61%
ROICexc(3y)20.58%
ROICexc(5y)17.9%
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 3Y18.01%
ROICexc growth 5Y4.54%
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 | 1.47 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.43 | ||
| 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 | 5 |
F-Score9
WACC8.55%
ROIC/WACC2.69
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)10.09%
EPS 3Y10.76%
EPS 5Y5.94%
EPS Q2Q%6.12%
EPS Next Y11.1%
EPS Next 2Y11.19%
EPS Next 3Y10.56%
EPS Next 5Y9.84%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.81%
Revenue Next Year6.53%
Revenue Next 2Y7.03%
Revenue Next 3Y6.82%
Revenue Next 5Y6.8%
EBIT growth 1Y6.9%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year25.26%
EBIT Next 3Y12.63%
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%