RELX PLC (REN.AS) Stock Fundamental Analysis
AMS:REN - Euronext Amsterdam - GB00B2B0DG97 - Common Stock - Currency: EUR
REN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 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
REN had positive earnings in the past year.
REN had a positive operating cash flow in the past year.
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.
1.2 Ratios
REN's Return On Assets of 12.78% is amongst the best of the industry. REN outperforms 100.00% of its industry peers.
REN has a Return On Equity of 55.56%. This is amongst the best in the industry. REN outperforms 93.10% of its industry peers.
REN's Return On Invested Capital of 21.31% is amongst the best of the industry. REN outperforms 93.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REN is significantly above the industry average of 11.88%.
The 3 year average ROIC (19.62%) for REN is below the current ROIC(21.31%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 20.50%, REN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of REN has remained more or less at the same level.
REN has a better Operating Margin (29.87%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of REN has grown nicely.
REN has a better Gross Margin (65.02%) than 62.07% of its industry peers.
REN'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
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
REN has an Altman-Z score of 4.69. This indicates that REN is financially healthy and has little risk of bankruptcy at the moment.
REN's Altman-Z score of 4.69 is amongst the best of the industry. REN outperforms 93.10% of its industry peers.
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.
The Debt to FCF ratio of REN (3.08) is better than 72.41% of its industry peers.
REN has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
REN's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. REN is outperformed by 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.69 |
ROIC/WACC2.44
WACC8.75%
2.3 Liquidity
A Current Ratio of 0.52 indicates that REN may have some problems paying its short term obligations.
REN has a Current ratio of 0.52. This is amonst the worse of the industry: REN underperforms 86.21% of its industry peers.
A Quick Ratio of 0.47 indicates that REN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.47, REN is doing worse than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
REN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.08%, which is quite good.
REN 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, REN shows a small growth in Revenue. The Revenue has grown by 2.98% in the last year.
REN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.68% yearly.
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
Based on estimates for the next years, REN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.84% on average per year.
REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.80% yearly.
EPS Next Y11.1%
EPS Next 2Y11.19%
EPS Next 3Y10.56%
EPS Next 5Y9.84%
Revenue Next Year6.31%
Revenue Next 2Y6.94%
Revenue Next 3Y6.81%
Revenue Next 5Y6.8%
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.
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 38.16, which means the current valuation is very expensive for REN.
REN's Price/Earnings ratio is a bit more expensive when compared to the industry. REN is more expensive than 62.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, REN is valued a bit more expensive.
REN is valuated quite expensively with a Price/Forward Earnings ratio of 28.72.
68.97% of the companies in the same industry are cheaper than REN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of REN to the average of the S&P500 Index (22.10), we can say REN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.16 | ||
| Fwd PE | 28.72 |
4.2 Price Multiples
68.97% of the companies in the same industry are cheaper than REN, based on the Enterprise Value to EBITDA ratio.
REN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. REN is more expensive than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.37 | ||
| EV/EBITDA | 20.5 |
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)3.44
PEG (5Y)6.43
EPS Next 2Y11.19%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.72%, REN has a reasonable but not impressive dividend return.
REN's Dividend Yield is comparable with the industry average which is at 2.84.
REN's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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.
The dividend of REN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.96%
EPS Next 2Y11.19%
EPS Next 3Y10.56%
AMS:REN (2/26/2025, 9:01:07 AM)
46.94
+3.24 (+7.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.19%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap86.82B
Analysts80
Price Target55.61 (18.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend0.71
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)7.13%
PT rev (3m)12.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.16 | ||
| Fwd PE | 28.72 | ||
| P/S | 7.74 | ||
| P/FCF | 34.37 | ||
| P/OCF | 27.99 | ||
| P/B | 20.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.5 |
EPS(TTM)1.23
EY2.62%
EPS(NY)1.63
Fwd EY3.48%
FCF(TTM)1.37
FCFY2.91%
OCF(TTM)1.68
OCFY3.57%
SpS6.07
BVpS2.24
TBVpS-5.08
PEG (NY)3.44
PEG (5Y)6.43
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 | 4.69 |
F-Score9
WACC8.75%
ROIC/WACC2.44
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 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 Year6.31%
Revenue Next 2Y6.94%
Revenue Next 3Y6.81%
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%