RELX PLC (REN.AS) Stock Fundamental Analysis
AMS:REN - Euronext Amsterdam - GB00B2B0DG97 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to REN. REN was compared to 30 industry peers in the Professional Services industry. REN scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, REN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
REN had positive earnings in the past year.
In the past year REN had a positive cash flow from operations.
In the past 5 years REN has always been profitable.
In the past 5 years REN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.78%, REN belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
With an excellent Return On Equity value of 55.56%, REN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
REN has a better Return On Invested Capital (21.31%) than 96.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REN is significantly above the industry average of 10.46%.
The last Return On Invested Capital (21.31%) for REN is above the 3 year average (19.62%), which is a sign of increasing profitability.
| 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
REN has a Profit Margin of 20.50%. This is amongst the best in the industry. REN outperforms 96.67% of its industry peers.
In the last couple of years the Profit Margin of REN has remained more or less at the same level.
With an excellent Operating Margin value of 29.87%, REN belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
REN's Operating Margin has improved in the last couple of years.
REN has a Gross Margin (65.02%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of REN has remained more or less at the same level.
| 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
REN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for REN has been reduced compared to 1 year ago.
REN has less shares outstanding than it did 5 years ago.
REN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.89 indicates that REN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.89, REN belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
The Debt to FCF ratio of REN is 3.08, which is a good value as it means it would take REN, 3.08 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.08, REN is doing good in the industry, outperforming 76.67% of the companies in the same industry.
A Debt/Equity ratio of 1.69 is on the high side and indicates that REN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.69, REN is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.89 |
ROIC/WACC2.42
WACC8.8%
2.3 Liquidity
A Current Ratio of 0.52 indicates that REN may have some problems paying its short term obligations.
The Current ratio of REN (0.52) is worse than 86.67% of its industry peers.
REN has a Quick Ratio of 0.52. This is a bad value and indicates that REN is not financially healthy enough and could expect problems in meeting its short term obligations.
REN's Quick ratio of 0.47 is on the low side compared to the rest of the industry. REN is outperformed by 86.67% 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 10.08% over the past year.
REN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
The Revenue has been growing slightly by 2.98% in the past year.
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.
The Revenue is expected to grow by 5.52% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
REN is valuated quite expensively with a Price/Earnings ratio of 37.15.
60.00% of the companies in the same industry are cheaper than REN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.28. REN is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 28.06, REN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, REN is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, REN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.15 | ||
| Fwd PE | 28.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REN indicates a slightly more expensive valuation: REN is more expensive than 70.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, REN is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.08 | ||
| EV/EBITDA | 21.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
REN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)6.26
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, REN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.01, REN has a dividend in line with its industry peers.
REN's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of REN grows each year by 6.76%, which is quite nice.
Dividend Growth(5Y)6.76%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
REN pays out 57.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
REN'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%
AMS:REN (7/2/2025, 7:00:00 PM)
44.58
-1.12 (-2.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.82%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap81.83B
Analysts80.83
Price Target53.46 (19.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.7
Dividend Growth(5Y)6.76%
DP57.96%
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)0.09%
PT rev (3m)-2.4%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 37.15 | ||
| Fwd PE | 28.06 | ||
| P/S | 7.45 | ||
| P/FCF | 33.08 | ||
| P/OCF | 26.94 | ||
| P/B | 20.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.58 |
EPS(TTM)1.2
EY2.69%
EPS(NY)1.59
Fwd EY3.56%
FCF(TTM)1.35
FCFY3.02%
OCF(TTM)1.65
OCFY3.71%
SpS5.98
BVpS2.21
TBVpS-5.01
PEG (NY)3.61
PEG (5Y)6.26
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 | 4.89 |
F-Score9
WACC8.8%
ROIC/WACC2.42
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%