RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
USA - NYSE:RELX - US7595301083 - ADR
46.5 USD
+0.17 (+0.37%)
46.5 USD
0 (0%)
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.
Each year in the past 5 years RELX has been profitable.
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 90.24% of its industry peers.
With an excellent Return On Equity value of 88.30%, RELX belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
RELX has a better Return On Invested Capital (25.89%) than 97.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RELX is significantly above the industry average of 12.76%.
The last Return On Invested Capital (25.89%) for RELX is above the 3 year average (19.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 88.3% | ||
| ROIC | 25.89% |
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
With an excellent Profit Margin value of 20.19%, RELX belongs to the best of the industry, outperforming 91.46% 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 30.17%. This is amongst the best in the industry. RELX outperforms 96.34% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
Looking at the Gross Margin, with a value of 65.48%, RELX is in the better half of the industry, outperforming 75.61% 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 | 30.17% | ||
| PM (TTM) | 20.19% | ||
| GM | 65.48% |
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.
The number of shares outstanding for RELX has been reduced compared to 1 year ago.
The number of shares outstanding for RELX has been reduced compared to 5 years ago.
Compared to 1 year ago, RELX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.35 indicates that RELX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.35, RELX is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
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 (3.34) which is in line with its industry peers.
RELX has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
RELX has a worse Debt to Equity ratio (2.57) than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.35 |
ROIC/WACC2.95
WACC8.79%
2.3 Liquidity
A Current Ratio of 0.47 indicates that RELX may have some problems paying its short term obligations.
RELX's Current ratio of 0.47 is on the low side compared to the rest of the industry. RELX is outperformed by 91.46% 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.
RELX has a worse Quick ratio (0.42) than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| 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 3.27%.
RELX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
Looking at the last year, RELX shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
The Revenue has been growing slightly by 3.68% on average over the past years.
EPS 1Y (TTM)3.27%
EPS 3Y10.76%
EPS 5Y5.94%
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 8.56% yearly.
Based on estimates for the next years, RELX will show a small growth in Revenue. The Revenue will grow by 6.16% on average per year.
EPS Next Y6.8%
EPS Next 2Y8.31%
EPS Next 3Y8.62%
EPS Next 5Y8.56%
Revenue Next Year2.12%
Revenue Next 2Y4.28%
Revenue Next 3Y4.97%
Revenue Next 5Y6.16%
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
Based on the Price/Earnings ratio of 32.75, the valuation of RELX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as RELX.
RELX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.36, the valuation of RELX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RELX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RELX to the average of the S&P500 Index (22.73), we can say RELX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.75 | ||
| Fwd PE | 23.36 |
4.2 Price Multiples
RELX's Enterprise Value to EBITDA is on the same level as the industry average.
RELX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.86 | ||
| EV/EBITDA | 19.18 |
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)4.82
PEG (5Y)5.52
EPS Next 2Y8.31%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, 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 2.18. RELX pays more dividend than 82.93% of the companies in the same industry.
RELX's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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
60.42% of the earnings are spent on dividend by RELX. This is not a sustainable payout ratio.
RELX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.42%
EPS Next 2Y8.31%
EPS Next 3Y8.62%
46.5
+0.17 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.82%
Inst Owner Change1.2%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap84.98B
Analysts80.87
Price Target61.45 (32.15%)
Short Float %0.1%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.82
Dividend Growth(5Y)6.76%
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)1.47%
PT rev (3m)-0.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.1%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.75 | ||
| Fwd PE | 23.36 | ||
| P/S | 6.6 | ||
| P/FCF | 27.86 | ||
| P/OCF | 22.76 | ||
| P/B | 28.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.18 |
EPS(TTM)1.42
EY3.05%
EPS(NY)1.99
Fwd EY4.28%
FCF(TTM)1.67
FCFY3.59%
OCF(TTM)2.04
OCFY4.39%
SpS7.05
BVpS1.61
TBVpS-6.39
PEG (NY)4.82
PEG (5Y)5.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 88.3% | ||
| ROCE | 33.63% | ||
| ROIC | 25.89% | ||
| ROICexc | 26.54% | ||
| ROICexgc | N/A | ||
| OM | 30.17% | ||
| 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)19.62%
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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 65.46% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 75.72% | ||
| Profit Quality | 117.25% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 4.35 |
F-Score7
WACC8.79%
ROIC/WACC2.95
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)3.27%
EPS 3Y10.76%
EPS 5Y5.94%
EPS Q2Q%6.72%
EPS Next Y6.8%
EPS Next 2Y8.31%
EPS Next 3Y8.62%
EPS Next 5Y8.56%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2.12%
Revenue Next 2Y4.28%
Revenue Next 3Y4.97%
Revenue Next 5Y6.16%
EBIT growth 1Y4.2%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year26.45%
EBIT Next 3Y13.05%
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%