RELX PLC (REN.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:REN - GB00B2B0DG97 - Common Stock
34.68 EUR
-0.36 (-1.03%)
Taking everything into account, REN scores 6 out of 10 in our fundamental rating. REN was compared to 32 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. While showing a medium growth rate, REN is valued expensive at the moment.
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.
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
REN has a Return On Assets of 13.44%. This is amongst the best in the industry. REN outperforms 100.00% of its industry peers.
REN's Return On Equity of 88.30% is amongst the best of the industry. REN outperforms 90.63% of its industry peers.
The Return On Invested Capital of REN (26.28%) is better than 100.00% of its industry peers.
REN had an Average Return On Invested Capital over the past 3 years of 19.85%. This is significantly above the industry average of 10.58%.
The last Return On Invested Capital (26.28%) for REN is above the 3 year average (19.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 88.3% | ||
| ROIC | 26.28% |
ROA(3y)11.68%
ROA(5y)10.86%
ROE(3y)50.1%
ROE(5y)50.83%
ROIC(3y)19.85%
ROIC(5y)17.4%
1.3 Margins
Looking at the Profit Margin, with a value of 20.19%, REN belongs to the top of the industry, outperforming 96.88% 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 (30.63%) than 96.88% of its industry peers.
REN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 65.48%, REN perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
REN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.63% | ||
| PM (TTM) | 20.19% | ||
| GM | 65.48% |
OM growth 3Y5.55%
OM growth 5Y3%
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.
Compared to 1 year ago, REN has less shares outstanding
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 3.99 indicates that REN is not in any danger for bankruptcy at the moment.
REN's Altman-Z score of 3.99 is amongst the best of the industry. REN outperforms 93.75% 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.
The Debt to FCF ratio of REN (3.34) is better than 78.13% of its industry peers.
A Debt/Equity ratio of 2.57 is on the high side and indicates that REN has dependencies on debt financing.
With a Debt to Equity ratio value of 2.57, REN is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 3.99 |
ROIC/WACC3.01
WACC8.74%
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.
With a Current ratio value of 0.47, REN is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
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 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.00% over the past year.
Measured over the past 5 years, REN shows a small growth in Earnings Per Share. The EPS has been growing by 5.93% on average per year.
Looking at the last year, REN shows a small growth in Revenue. The Revenue has grown by 2.48% 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)4%
EPS 3Y10.74%
EPS 5Y5.93%
EPS Q2Q%6.72%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
3.2 Future
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
Based on estimates for the next years, REN will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y6.91%
EPS Next 2Y8.6%
EPS Next 3Y8.8%
EPS Next 5Y9.23%
Revenue Next Year1.95%
Revenue Next 2Y4.25%
Revenue Next 3Y4.96%
Revenue Next 5Y6.01%
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
Based on the Price/Earnings ratio of 29.14, the valuation of REN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of REN is on the same level as its industry peers.
REN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
REN is valuated rather expensively with a Price/Forward Earnings ratio of 20.74.
REN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. REN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.14 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
68.75% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.39 | ||
| EV/EBITDA | 20.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of REN may justify a higher PE ratio.
PEG (NY)4.22
PEG (5Y)4.92
EPS Next 2Y8.6%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
REN has a Yearly Dividend Yield of 2.13%.
REN's Dividend Yield is comparable with the industry average which is at 2.47.
Compared to an average S&P500 Dividend Yield of 2.00, REN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of REN is nicely growing with an annual growth rate of 6.11%!
Dividend Growth(5Y)6.11%
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 2Y8.6%
EPS Next 3Y8.8%
AMS:REN (12/31/2025, 7:00:00 PM)
34.68
-0.36 (-1.03%)
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 Cap63.08B
Revenue(TTM)9.53B
Net Income(TTM)1.93B
Analysts81.74
Price Target47.14 (35.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.63
Dividend Growth(5Y)6.11%
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)-0.45%
PT rev (3m)-10.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.14 | ||
| Fwd PE | 20.74 | ||
| P/S | 5.77 | ||
| P/FCF | 24.39 | ||
| P/OCF | 19.92 | ||
| P/B | 25.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.83 |
EPS(TTM)1.19
EY3.43%
EPS(NY)1.67
Fwd EY4.82%
FCF(TTM)1.42
FCFY4.1%
OCF(TTM)1.74
OCFY5.02%
SpS6.01
BVpS1.37
TBVpS-5.45
PEG (NY)4.22
PEG (5Y)4.92
Graham Number6.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 88.3% | ||
| ROCE | 34.15% | ||
| ROIC | 26.28% | ||
| ROICexc | 26.95% | ||
| ROICexgc | N/A | ||
| OM | 30.63% | ||
| 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)19.85%
ROIC(5y)17.4%
ROICexc(3y)20.23%
ROICexc(5y)17.68%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.83%
ROCE(5y)23.39%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y15.54%
ROICexc growth 5Y3.21%
OM growth 3Y5.55%
OM growth 5Y3%
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 | 1.87 | ||
| Cap/Depr | 683.78% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 10.62 | ||
| Cash Conversion | 92.28% | ||
| Profit Quality | 117.25% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 3.99 |
F-Score7
WACC8.74%
ROIC/WACC3.01
Cap/Depr(3y)357.8%
Cap/Depr(5y)232.58%
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)4%
EPS 3Y10.74%
EPS 5Y5.93%
EPS Q2Q%6.72%
EPS Next Y6.91%
EPS Next 2Y8.6%
EPS Next 3Y8.8%
EPS Next 5Y9.23%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year1.95%
Revenue Next 2Y4.25%
Revenue Next 3Y4.96%
Revenue Next 5Y6.01%
EBIT growth 1Y4.1%
EBIT growth 3Y15.27%
EBIT growth 5Y6.79%
EBIT Next Year23.68%
EBIT Next 3Y12.25%
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%
RELX PLC / REN.AS FAQ
Can you provide the ChartMill fundamental rating for RELX PLC?
ChartMill assigns a fundamental rating of 6 / 10 to REN.AS.
What is the valuation status of RELX PLC (REN.AS) stock?
ChartMill assigns a valuation rating of 2 / 10 to RELX PLC (REN.AS). This can be considered as Overvalued.
Can you provide the profitability details for RELX PLC?
RELX PLC (REN.AS) has a profitability rating of 9 / 10.
What is the valuation of RELX PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RELX PLC (REN.AS) is 29.14 and the Price/Book (PB) ratio is 25.25.
What is the expected EPS growth for RELX PLC (REN.AS) stock?
The Earnings per Share (EPS) of RELX PLC (REN.AS) is expected to grow by 6.91% in the next year.