RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
USA - NYSE:RELX - US7595301083 - ADR
40.38 USD
-0.95 (-2.3%)
44.35 USD
+3.97 (+9.83%)
We assign a fundamental rating of 6 out of 10 to RELX. RELX was compared to 87 industry peers in the Professional Services industry. While RELX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RELX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RELX was profitable.
In the past year RELX had a positive cash flow from operations.
Each year in the past 5 years RELX has been profitable.
Each year in the past 5 years RELX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RELX (13.44%) is better than 88.51% of its industry peers.
With an excellent Return On Equity value of 88.30%, RELX belongs to the best of the industry, outperforming 95.40% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.89%, RELX belongs to the best of the industry, outperforming 94.25% of the companies in the same industry.
RELX had an Average Return On Invested Capital over the past 3 years of 19.62%. This is below the industry average of 22.56%.
The last Return On Invested Capital (25.89%) for RELX is above the 3 year average (19.62%), which is a sign of increasing profitability.
| 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 RELX (20.19%) is better than 89.66% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 30.17%, RELX belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
In the last couple of years the Operating Margin of RELX has grown nicely.
RELX has a better Gross Margin (65.48%) than 79.31% of its industry peers.
In the last couple of years the Gross Margin of RELX 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 RELX is creating value.
The number of shares outstanding for RELX has been reduced compared to 1 year ago.
RELX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RELX has an improved debt to assets ratio.
2.2 Solvency
RELX has an Altman-Z score of 4.08. This indicates that RELX is financially healthy and has little risk of bankruptcy at the moment.
RELX has a better Altman-Z score (4.08) than 77.01% of its industry peers.
RELX has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as RELX would need 3.34 years to pay back of all of its debts.
RELX has a better Debt to FCF ratio (3.34) than 60.92% of its industry peers.
A Debt/Equity ratio of 2.57 is on the high side and indicates that RELX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.57, RELX is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.08 |
ROIC/WACC2.94
WACC8.82%
2.3 Liquidity
A Current Ratio of 0.47 indicates that RELX may have some problems paying its short term obligations.
With a Current ratio value of 0.47, RELX is not doing good in the industry: 89.66% of the companies in the same industry are doing better.
RELX has a Quick Ratio of 0.47. This is a bad value and indicates that RELX is not financially healthy enough and could expect problems in meeting its short term obligations.
RELX has a worse Quick ratio (0.42) than 90.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
RELX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.27%.
RELX 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, RELX shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
The Revenue has been growing slightly by 3.68% on average over the past years.
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
Based on estimates for the next years, RELX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
The Revenue is expected to grow by 6.42% on average over the next years.
EPS Next Y7.01%
EPS Next 2Y8.62%
EPS Next 3Y8.85%
EPS Next 5Y9.23%
Revenue Next Year2.07%
Revenue Next 2Y4.32%
Revenue Next 3Y5.01%
Revenue Next 5Y6.42%
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 29.05, which means the current valuation is very expensive for RELX.
RELX's Price/Earnings is on the same level as the industry average.
RELX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.61, the valuation of RELX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RELX is on the same level as its industry peers.
RELX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.05 | ||
| Fwd PE | 20.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RELX.
The rest of the industry has a similar Price/Free Cash Flow ratio as RELX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.72 | ||
| EV/EBITDA | 17.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RELX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.15
PEG (5Y)4.89
EPS Next 2Y8.62%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 2.05%.
Compared to an average industry Dividend Yield of 4.28, RELX pays a better dividend. On top of this RELX pays more dividend than 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RELX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of RELX is nicely growing with an annual growth rate of 6.76%!
RELX has paid a dividend for at least 10 years, which is a reliable track record.
RELX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.76%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
RELX pays out 60.42% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RELX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.42%
EPS Next 2Y8.62%
EPS Next 3Y8.85%
40.38
-0.95 (-2.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners59.82%
Inst Owner Change-3.36%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap73.47B
Revenue(TTM)9.53B
Net Income(TTM)1.93B
Analysts81.74
Price Target55.34 (37.05%)
Short Float %0.06%
Short Ratio0.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend0.81
Dividend Growth(5Y)6.76%
DP60.42%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-8.97%
PT rev (3m)-9.4%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.2%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.05 | ||
| Fwd PE | 20.61 | ||
| P/S | 5.85 | ||
| P/FCF | 24.72 | ||
| P/OCF | 20.19 | ||
| P/B | 25.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.66 |
EPS(TTM)1.39
EY3.44%
EPS(NY)1.96
Fwd EY4.85%
FCF(TTM)1.63
FCFY4.05%
OCF(TTM)2
OCFY4.95%
SpS6.9
BVpS1.58
TBVpS-6.26
PEG (NY)4.15
PEG (5Y)4.89
Graham Number7.02
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 4.08 |
F-Score7
WACC8.82%
ROIC/WACC2.94
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 Y7.01%
EPS Next 2Y8.62%
EPS Next 3Y8.85%
EPS Next 5Y9.23%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2.07%
Revenue Next 2Y4.32%
Revenue Next 3Y5.01%
Revenue Next 5Y6.42%
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%
RELX PLC - SPON ADR / RELX FAQ
What is the ChartMill fundamental rating of RELX PLC - SPON ADR (RELX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RELX.
What is the valuation status for RELX stock?
ChartMill assigns a valuation rating of 3 / 10 to RELX PLC - SPON ADR (RELX). This can be considered as Overvalued.
Can you provide the profitability details for RELX PLC - SPON ADR?
RELX PLC - SPON ADR (RELX) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for RELX stock?
The Earnings per Share (EPS) of RELX PLC - SPON ADR (RELX) is expected to grow by 7.01% in the next year.
How sustainable is the dividend of RELX PLC - SPON ADR (RELX) stock?
The dividend rating of RELX PLC - SPON ADR (RELX) is 5 / 10 and the dividend payout ratio is 60.42%.