RELX PLC (REN.AS) Stock Fundamental Analysis
Europe - AMS:REN - GB00B2B0DG97 - Common Stock
39.86 EUR
+0.08 (+0.2%)
Overall REN gets a fundamental rating of 6 out of 10. We evaluated REN against 32 industry peers in the Professional Services industry. REN has an excellent profitability rating, but there are some minor concerns on its financial health. REN is quite expensive at the moment. It does show a decent growth rate.
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.
REN had positive earnings in each of the past 5 years.
REN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REN's Return On Assets of 13.44% is amongst the best of the industry. REN outperforms 93.75% of its industry peers.
With an excellent Return On Equity value of 88.30%, REN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
REN's Return On Invested Capital of 25.89% is amongst the best of the industry. REN outperforms 90.63% 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 12.59%.
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
The Profit Margin of REN (20.19%) is better than 96.88% of its industry peers.
In the last couple of years the Profit Margin of REN has remained more or less at the same level.
REN has a Operating Margin of 30.17%. This is amongst the best in the industry. REN outperforms 96.88% of its industry peers.
REN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 65.48%, REN is in line with its industry, outperforming 56.25% 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 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REN is creating value.
Compared to 1 year ago, REN has less shares outstanding
The number of shares outstanding for REN has been reduced compared to 5 years ago.
The debt/assets ratio for REN has been reduced compared to a year ago.
2.2 Solvency
REN has an Altman-Z score of 4.37. This indicates that REN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of REN (4.37) is better than 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.
REN has a better Debt to FCF ratio (3.34) than 68.75% of its industry peers.
REN has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.57, REN is doing worse than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.37 |
ROIC/WACC2.97
WACC8.72%
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 90.63% 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 90.63% 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 3.27% over the past year.
The Earnings Per Share has been growing slightly by 5.94% on average over the past years.
The Revenue has been growing slightly by 2.48% in the past 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)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
The Earnings Per Share is expected to grow by 8.56% on average over the next years. This is quite good.
REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.16% yearly.
EPS Next Y6.8%
EPS Next 2Y8.31%
EPS Next 3Y8.62%
EPS Next 5Y8.56%
Revenue Next Year2.14%
Revenue Next 2Y4.3%
Revenue Next 3Y4.98%
Revenue Next 5Y6.16%
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
REN is valuated quite expensively with a Price/Earnings ratio of 33.50.
Compared to the rest of the industry, the Price/Earnings ratio of REN indicates a slightly more expensive valuation: REN is more expensive than 62.50% of the companies listed in the same industry.
REN is valuated rather expensively when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.77, the valuation of REN can be described as rather expensive.
REN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. REN is more expensive than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, REN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 23.77 |
4.2 Price Multiples
65.63% of the companies in the same industry are cheaper than REN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, REN is valued a bit more expensive than the industry average as 65.63% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.93 | ||
| EV/EBITDA | 19.25 |
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)4.93
PEG (5Y)5.64
EPS Next 2Y8.31%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
REN has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.37, REN has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, REN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
The dividend of REN is nicely growing with an annual growth rate of 6.76%!
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 2Y8.31%
EPS Next 3Y8.62%
AMS:REN (9/15/2025, 5:29:50 PM)
39.86
+0.08 (+0.2%)
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 Cap72.84B
Analysts80.87
Price Target52.49 (31.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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)-0.67%
PT rev (3m)-3.88%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-3.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 23.77 | ||
| P/S | 6.61 | ||
| P/FCF | 27.93 | ||
| P/OCF | 22.81 | ||
| P/B | 28.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.25 |
EPS(TTM)1.19
EY2.99%
EPS(NY)1.68
Fwd EY4.21%
FCF(TTM)1.43
FCFY3.58%
OCF(TTM)1.75
OCFY4.38%
SpS6.03
BVpS1.38
TBVpS-5.47
PEG (NY)4.93
PEG (5Y)5.64
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 | 4.37 |
F-Score7
WACC8.72%
ROIC/WACC2.97
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 Y6.8%
EPS Next 2Y8.31%
EPS Next 3Y8.62%
EPS Next 5Y8.56%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2.14%
Revenue Next 2Y4.3%
Revenue Next 3Y4.98%
Revenue Next 5Y6.16%
EBIT growth 1Y4.2%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year26.45%
EBIT Next 3Y13.05%
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%