RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
NYSE:RELX - New York Stock Exchange, Inc. - US7595301083 - ADR - Currency: USD
Overall RELX gets a fundamental rating of 5 out of 10. We evaluated RELX against 82 industry peers in the Professional Services industry. RELX has an excellent profitability rating, but 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.
RELX had a positive operating cash flow in the past year.
RELX had positive earnings in each of the past 5 years.
Each year in the past 5 years RELX had a positive operating cash flow.
1.2 Ratios
RELX has a better Return On Assets (13.44%) than 89.02% of its industry peers.
The Return On Equity of RELX (88.30%) is better than 93.90% of its industry peers.
RELX has a Return On Invested Capital of 25.89%. This is amongst the best in the industry. RELX outperforms 96.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RELX is significantly above the industry average of 12.36%.
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
With an excellent Profit Margin value of 20.19%, RELX belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
In the last couple of years the Profit Margin of RELX has remained more or less at the same level.
The Operating Margin of RELX (30.17%) is better than 96.34% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
The Gross Margin of RELX (65.48%) is better than 76.83% 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.
RELX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RELX has been reduced compared to 5 years ago.
RELX has a better debt/assets ratio than last year.
2.2 Solvency
RELX has an Altman-Z score of 4.80. This indicates that RELX is financially healthy and has little risk of bankruptcy at the moment.
RELX has a Altman-Z score of 4.80. This is amongst the best in the industry. RELX outperforms 80.49% 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.
With a Debt to FCF ratio value of 3.34, RELX perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
RELX has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RELX (2.57) is worse than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.8 |
ROIC/WACC2.95
WACC8.78%
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: 93.90% of the companies in the same industry are doing better.
A Quick Ratio of 0.42 indicates that RELX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.42, RELX is doing worse than 93.90% of the companies in the same industry.
| 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.
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%0.65%
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 8.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.06%
Revenue Next Year4.92%
Revenue Next 2Y6.06%
Revenue Next 3Y5.99%
Revenue Next 5Y5.52%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.40, which means the current valuation is very expensive for RELX.
Based on the Price/Earnings ratio, RELX is valued a bit more expensive than the industry average as 64.63% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.05, RELX is valued a bit more expensive.
RELX is valuated quite expensively with a Price/Forward Earnings ratio of 25.52.
RELX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RELX to the average of the S&P500 Index (37.67), we can say RELX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.4 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
RELX's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RELX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.78 | ||
| EV/EBITDA | 21.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RELX does not grow enough to justify the current Price/Earnings ratio.
RELX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)6.3
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.08, RELX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, RELX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of RELX is nicely growing with an annual growth rate of 6.76%!
RELX has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RELX decreased 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP60.42%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
52.73
-0.98 (-1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.82%
Inst Owner Change-0.25%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap96.49B
Analysts80.83
Price Target60.56 (14.85%)
Short Float %0.06%
Short Ratio1.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend0.82
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)-1.33%
PT rev (3m)-2.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.4 | ||
| Fwd PE | 25.52 | ||
| P/S | 7.52 | ||
| P/FCF | 31.78 | ||
| P/OCF | 25.96 | ||
| P/B | 32.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.66 |
EPS(TTM)1.41
EY2.67%
EPS(NY)2.07
Fwd EY3.92%
FCF(TTM)1.66
FCFY3.15%
OCF(TTM)2.03
OCFY3.85%
SpS7.01
BVpS1.6
TBVpS-6.36
PEG (NY)3.63
PEG (5Y)6.3
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 | 4.8 |
F-Score7
WACC8.78%
ROIC/WACC2.95
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%0.65%
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.06%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year4.92%
Revenue Next 2Y6.06%
Revenue Next 3Y5.99%
Revenue Next 5Y5.52%
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%