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RELX PLC (REN.AS) Stock Fundamental Analysis

AMS:REN - Euronext Amsterdam - GB00B2B0DG97 - Common Stock - Currency: EUR

47.95  -0.19 (-0.39%)

Fundamental Rating

5

REN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Professional Services industry. While REN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. REN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year REN was profitable.
In the past year REN had a positive cash flow from operations.
Each year in the past 5 years REN has been profitable.
REN had a positive operating cash flow in each of the past 5 years.
REN.AS Yearly Net Income VS EBIT VS OCF VS FCFREN.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

1.2 Ratios

With an excellent Return On Assets value of 12.86%, REN belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
With an excellent Return On Equity value of 58.90%, REN belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Invested Capital of REN (23.43%) is better than 92.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REN is significantly above the industry average of 11.50%.
The 3 year average ROIC (17.33%) for REN is below the current ROIC(23.43%), indicating increased profibility in the last year.
Industry RankSector 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%
REN.AS Yearly ROA, ROE, ROICREN.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

1.3 Margins

Looking at the Profit Margin, with a value of 20.34%, REN belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
REN's Profit Margin has been stable in the last couple of years.
REN has a better Operating Margin (29.67%) than 96.30% of its industry peers.
In the last couple of years the Operating Margin of REN has grown nicely.
With a Gross Margin value of 65.31%, REN perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Gross Margin of REN has remained more or less at the same level.
Industry RankSector 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%
REN.AS Yearly Profit, Operating, Gross MarginsREN.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REN is creating value.
REN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, REN has less shares outstanding
Compared to 1 year ago, REN has a worse debt to assets ratio.
REN.AS Yearly Shares OutstandingREN.AS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
REN.AS Yearly Total Debt VS Total AssetsREN.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

An Altman-Z score of 5.08 indicates that REN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.08, REN belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
The Debt to FCF ratio of REN is 3.39, which is a good value as it means it would take REN, 3.39 years of fcf income to pay off all of its debts.
REN has a better Debt to FCF ratio (3.39) than 62.96% of its industry peers.
REN has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
REN's Debt to Equity ratio of 1.61 is on the low side compared to the rest of the industry. REN is outperformed by 77.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.61
Debt/FCF 3.39
Altman-Z 5.08
ROIC/WACC2.72
WACC8.6%
REN.AS Yearly LT Debt VS Equity VS FCFREN.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.3 Liquidity

A Current Ratio of 0.48 indicates that REN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.48, REN is doing worse than 96.30% of the companies in the same industry.
REN has a Quick Ratio of 0.48. This is a bad value and indicates that REN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of REN (0.42) is worse than 96.30% of its industry peers.
Industry RankSector Rank
Current Ratio 0.48
Quick Ratio 0.42
REN.AS Yearly Current Assets VS Current LiabilitesREN.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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5

3. Growth

3.1 Past

REN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.49%.
Measured over the past 5 years, REN shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
The Revenue has been growing slightly by 2.42% in the past year.
Measured over the past years, REN 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

Based on estimates for the next years, REN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.57% on average per year.
The Revenue is expected to grow by 6.38% on average over the next years.
EPS Next Y8.61%
EPS Next 2Y9.75%
EPS Next 3Y10.1%
EPS Next 5Y9.57%
Revenue Next Year3.8%
Revenue Next 2Y4.96%
Revenue Next 3Y5.61%
Revenue Next 5Y6.38%

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.
REN.AS Yearly Revenue VS EstimatesREN.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
REN.AS Yearly EPS VS EstimatesREN.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0.5 1 1.5

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 34.01, REN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as REN.
REN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.05, REN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, REN is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, REN is valued rather cheaply.
Industry RankSector Rank
PE 34.01
Fwd PE 29.05
REN.AS Price Earnings VS Forward Price EarningsREN.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, REN is valued a bit more expensive than 70.37% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REN indicates a slightly more expensive valuation: REN is more expensive than 74.07% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 35.98
EV/EBITDA 22.83
REN.AS Per share dataREN.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates REN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of REN may justify a higher PE ratio.
PEG (NY)3.95
PEG (5Y)5.56
EPS Next 2Y9.75%
EPS Next 3Y10.1%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.49%, REN has a reasonable but not impressive dividend return.
REN's Dividend Yield is comparable with the industry average which is at 2.85.
REN's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.49%

5.2 History

On average, the dividend of REN grows each year by 6.84%, which is quite nice.
Dividend Growth(5Y)6.84%
Div Incr Years6
Div Non Decr Years6
REN.AS Yearly Dividends per shareREN.AS Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

REN pays out 58.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of REN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.3%
EPS Next 2Y9.75%
EPS Next 3Y10.1%
REN.AS Yearly Income VS Free CF VS DividendREN.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
REN.AS Dividend Payout.REN.AS Dividend Payout, showing the Payout Ratio.REN.AS Dividend Payout.PayoutRetained Earnings

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RELX PLC

AMS:REN (2/5/2025, 10:34:00 AM)

47.95

-0.19 (-0.39%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)N/A N/A
Earnings (Next)02-13 2025-02-13/amc
Inst Owners55.76%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap88.89B
Analysts80.87
Price Target51.91 (8.26%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.49%
Yearly Dividend0.56
Dividend Growth(5Y)6.84%
DP58.3%
Div Incr Years6
Div Non Decr Years6
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)5%
PT rev (3m)5.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.25%
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 RankSector Rank
PE 34.01
Fwd PE 29.05
P/S 7.95
P/FCF 35.98
P/OCF 29.13
P/B 23.02
P/tB N/A
EV/EBITDA 22.83
EPS(TTM)1.41
EY2.94%
EPS(NY)1.65
Fwd EY3.44%
FCF(TTM)1.33
FCFY2.78%
OCF(TTM)1.65
OCFY3.43%
SpS6.03
BVpS2.08
TBVpS-5.23
PEG (NY)3.95
PEG (5Y)5.56
Profitability
Industry RankSector 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 RankSector 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 5.08
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 Y8.61%
EPS Next 2Y9.75%
EPS Next 3Y10.1%
EPS Next 5Y9.57%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y8.82%
Revenue growth 5Y4.1%
Sales Q2Q%3.16%
Revenue Next Year3.8%
Revenue Next 2Y4.96%
Revenue Next 3Y5.61%
Revenue Next 5Y6.38%
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%