RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
NYSE:RELX - New York Stock Exchange, Inc. - US7595301083 - ADR - Currency: USD
RELX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. RELX scores excellent on profitability, but there are some minor concerns on its financial health. RELX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RELX had positive earnings in the past year.
RELX had a positive operating cash flow in the past year.
In the past 5 years RELX has always 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 (12.78%) is better than 86.59% of its industry peers.
Looking at the Return On Equity, with a value of 55.56%, RELX belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
RELX has a better Return On Invested Capital (21.31%) than 95.12% of its industry peers.
RELX had an Average Return On Invested Capital over the past 3 years of 19.62%. This is significantly above the industry average of 12.28%.
The 3 year average ROIC (19.62%) for RELX 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
The Profit Margin of RELX (20.50%) is better than 91.46% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
RELX's Operating Margin of 29.87% is amongst the best of the industry. RELX outperforms 96.34% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
RELX has a better Gross Margin (65.02%) 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 | 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
RELX 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 RELX has been reduced compared to 1 year ago.
RELX has less shares outstanding than it did 5 years ago.
RELX has a better debt/assets ratio than last year.
2.2 Solvency
RELX has an Altman-Z score of 4.92. This indicates that RELX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.92, RELX belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
The Debt to FCF ratio of RELX is 3.08, which is a good value as it means it would take RELX, 3.08 years of fcf income to pay off all of its debts.
RELX has a Debt to FCF ratio of 3.08. This is in the better half of the industry: RELX outperforms 62.20% of its industry peers.
A Debt/Equity ratio of 1.69 is on the high side and indicates that RELX has dependencies on debt financing.
The Debt to Equity ratio of RELX (1.69) is worse than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.92 |
ROIC/WACC2.43
WACC8.78%
2.3 Liquidity
RELX has a Current Ratio of 0.52. 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 Current ratio (0.52) than 93.90% of its industry peers.
RELX has a Quick Ratio of 0.52. This is a bad value and indicates that RELX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
RELX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.08%, which is quite good.
Measured over the past 5 years, RELX shows a small growth in Earnings Per Share. The EPS has been growing by 5.94% on average per year.
Looking at the last year, RELX shows a small growth in Revenue. The Revenue has grown by 2.98% in the last year.
RELX 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
RELX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.06% yearly.
Based on estimates for the next years, RELX will show a small growth in Revenue. The Revenue will grow by 5.52% on average per year.
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
RELX is valuated quite expensively with a Price/Earnings ratio of 36.87.
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.
When comparing the Price/Earnings ratio of RELX to the average of the S&P500 Index (28.04), we can say RELX is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.92, the valuation of RELX can be described as expensive.
Based on the Price/Forward Earnings ratio, RELX is valued a bit more expensive than 62.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, RELX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.87 | ||
| Fwd PE | 27.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RELX.
RELX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.52 | ||
| EV/EBITDA | 21.71 |
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)3.58
PEG (5Y)6.21
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.
RELX's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to the average S&P500 Dividend Yield of 2.31, 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 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
57.96% of the earnings are spent on dividend by RELX. This is a bit on the high side, but may be sustainable.
RELX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP57.96%
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-0.77%
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%
DP57.96%
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)-2.34%
PT rev (3m)0.62%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.87 | ||
| Fwd PE | 27.92 | ||
| P/S | 7.55 | ||
| P/FCF | 33.52 | ||
| P/OCF | 27.3 | ||
| P/B | 20.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.71 |
EPS(TTM)1.43
EY2.71%
EPS(NY)1.89
Fwd EY3.58%
FCF(TTM)1.57
FCFY2.98%
OCF(TTM)1.93
OCFY3.66%
SpS6.99
BVpS2.58
TBVpS-5.85
PEG (NY)3.58
PEG (5Y)6.21
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 | 4.92 |
F-Score9
WACC8.78%
ROIC/WACC2.43
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 Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.06%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.81%
Revenue Next Year4.92%
Revenue Next 2Y6.06%
Revenue Next 3Y5.99%
Revenue Next 5Y5.52%
EBIT growth 1Y6.9%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year26.45%
EBIT Next 3Y13.05%
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%