RELX PLC (REN.AS) Stock Fundamental Analysis
Europe - AMS:REN - GB00B2B0DG97 - Common Stock
38.6 EUR
-0.04 (-0.1%)
Taking everything into account, REN scores 6 out of 10 in our fundamental rating. REN was compared to 33 industry peers in the Professional Services industry. REN scores excellent on profitability, but 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.
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.
In the past 5 years REN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of REN (13.44%) is better than 96.97% of its industry peers.
Looking at the Return On Equity, with a value of 88.30%, REN belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
REN has a Return On Invested Capital of 25.89%. This is amongst the best in the industry. REN outperforms 96.97% 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 11.62%.
The 3 year average ROIC (19.62%) for REN is below the current ROIC(25.89%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 20.19%, REN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
REN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 30.17%, REN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
REN's Operating Margin has improved in the last couple of years.
The Gross Margin of REN (65.48%) 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), REN is creating value.
REN has less shares outstanding than it did 1 year ago.
REN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for REN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.28 indicates that REN is not in any danger for bankruptcy at the moment.
REN's Altman-Z score of 4.28 is amongst the best of the industry. REN outperforms 90.91% of its industry peers.
The Debt to FCF ratio of REN is 3.34, which is a good value as it means it would take REN, 3.34 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.34, REN is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 2.57 is on the high side and indicates that REN has dependencies on debt financing.
REN has a worse Debt to Equity ratio (2.57) than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.28 |
ROIC/WACC2.96
WACC8.75%
2.3 Liquidity
REN has a Current Ratio of 0.47. 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 Current ratio of 0.47 is on the low side compared to the rest of the industry. REN is outperformed by 87.88% of its industry peers.
A Quick Ratio of 0.42 indicates that REN may have some problems paying its short term obligations.
The Quick ratio of REN (0.42) is worse than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
REN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.27%.
REN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
REN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.48%.
Measured over the past years, REN shows a small growth in Revenue. The Revenue has been growing by 3.68% on average per year.
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
REN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.65% yearly.
REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.25% yearly.
EPS Next Y6.82%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
EPS Next 5Y8.65%
Revenue Next Year2.04%
Revenue Next 2Y4.25%
Revenue Next 3Y4.95%
Revenue Next 5Y6.25%
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
A Price/Earnings ratio of 32.44 indicates a quite expensive valuation of REN.
Compared to the rest of the industry, the Price/Earnings ratio of REN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of REN to the average of the S&P500 Index (27.40), we can say REN is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.03, REN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, REN is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
REN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 23.03 |
4.2 Price Multiples
REN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. REN is more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REN is valued a bit more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.03 | ||
| EV/EBITDA | 18.74 |
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.
REN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.76
PEG (5Y)5.46
EPS Next 2Y8.41%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
REN has a Yearly Dividend Yield of 1.92%.
REN's Dividend Yield is comparable with the industry average which is at 3.41.
REN's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
60.42% of the earnings are spent on dividend by REN. This is not a sustainable payout ratio.
The dividend of REN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.42%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
AMS:REN (10/17/2025, 7:00:00 PM)
38.6
-0.04 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners59.82%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap70.25B
Analysts81.74
Price Target51.95 (34.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend0.69
Dividend Growth(5Y)6.76%
DP60.42%
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)-1.84%
PT rev (3m)-2.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.02%
EPS NY rev (3m)-3.16%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 23.03 | ||
| P/S | 6.4 | ||
| P/FCF | 27.03 | ||
| P/OCF | 22.08 | ||
| P/B | 27.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.74 |
EPS(TTM)1.19
EY3.08%
EPS(NY)1.68
Fwd EY4.34%
FCF(TTM)1.43
FCFY3.7%
OCF(TTM)1.75
OCFY4.53%
SpS6.03
BVpS1.38
TBVpS-5.47
PEG (NY)4.76
PEG (5Y)5.46
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 | 4.28 |
F-Score7
WACC8.75%
ROIC/WACC2.96
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 Y6.82%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
EPS Next 5Y8.65%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2.04%
Revenue Next 2Y4.25%
Revenue Next 3Y4.95%
Revenue Next 5Y6.25%
EBIT growth 1Y4.2%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year23.62%
EBIT Next 3Y12.21%
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%