RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RELX - US7595301083 - ADR
43.14 USD
+0.79 (+1.87%)
43.14 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RELX. RELX was compared to 86 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.
In the past 5 years RELX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 13.44%, RELX belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
The Return On Equity of RELX (88.30%) is better than 97.67% of its industry peers.
RELX's Return On Invested Capital of 26.28% is amongst the best of the industry. RELX outperforms 95.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RELX is significantly above the industry average of 11.86%.
The last Return On Invested Capital (26.28%) for RELX 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
RELX has a better Profit Margin (20.19%) than 88.37% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
RELX has a Operating Margin of 30.63%. This is amongst the best in the industry. RELX outperforms 97.67% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
Looking at the Gross Margin, with a value of 65.48%, RELX belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
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 | 30.63% | ||
| 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
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.
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 4.16. This indicates that RELX is financially healthy and has little risk of bankruptcy at the moment.
RELX has a Altman-Z score of 4.16. This is in the better half of the industry: RELX outperforms 76.74% 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 Debt to FCF ratio of 3.34. This is in the better half of the industry: RELX outperforms 65.12% of its industry peers.
RELX has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
RELX has a Debt to Equity ratio of 2.57. This is amonst the worse of the industry: RELX underperforms 82.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.16 |
ROIC/WACC2.97
WACC8.85%
2.3 Liquidity
RELX has a Current 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.
With a Current ratio value of 0.47, RELX is not doing good in the industry: 89.53% 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 90.70% 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 4.00%.
Measured over the past 5 years, RELX 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, RELX shows a small growth in Revenue. The Revenue has grown by 2.48% 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)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
Based on estimates for the next years, RELX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.69% on average per year.
Based on estimates for the next years, RELX will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y6.91%
EPS Next 2Y8.6%
EPS Next 3Y8.8%
EPS Next 5Y8.69%
Revenue Next Year1.95%
Revenue Next 2Y4.25%
Revenue Next 3Y4.96%
Revenue Next 5Y5.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 30.38, the valuation of RELX can be described as expensive.
RELX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. RELX is around the same levels.
RELX is valuated rather expensively with a Price/Forward Earnings ratio of 21.61.
RELX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.88. RELX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.38 | ||
| Fwd PE | 21.61 |
4.2 Price Multiples
RELX's Enterprise Value to EBITDA is on the same level as the industry average.
RELX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RELX is cheaper than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.91 | ||
| EV/EBITDA | 21.98 |
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)4.4
PEG (5Y)5.13
EPS Next 2Y8.6%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, RELX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.49, RELX pays a better dividend. On top of this RELX pays more dividend than 82.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, RELX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
On average, the dividend of RELX grows each year by 6.11%, which is quite nice.
RELX has been paying a dividend for at least 10 years, so it has a reliable track record.
RELX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.11%
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 2Y8.6%
EPS Next 3Y8.8%
43.14
+0.79 (+1.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners60.06%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap78.47B
Revenue(TTM)9.53B
Net Income(TTM)1.93B
Analysts82.61
Price Target55.17 (27.89%)
Short Float %0.1%
Short Ratio1.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend0.75
Dividend Growth(5Y)6.11%
DP60.42%
Div Incr Years2
Div Non Decr Years2
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)-0.66%
PT rev (3m)-9.24%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.38 | ||
| Fwd PE | 21.61 | ||
| P/S | 6.13 | ||
| P/FCF | 25.91 | ||
| P/OCF | 21.17 | ||
| P/B | 26.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.98 |
EPS(TTM)1.42
EY3.29%
EPS(NY)2
Fwd EY4.63%
FCF(TTM)1.66
FCFY3.86%
OCF(TTM)2.04
OCFY4.72%
SpS7.03
BVpS1.61
TBVpS-6.38
PEG (NY)4.4
PEG (5Y)5.13
Graham Number7.17
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 | 4.16 |
F-Score7
WACC8.85%
ROIC/WACC2.97
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 5Y8.69%
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 5Y5.48%
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 - 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 of RELX PLC - SPON ADR (RELX) stock?
ChartMill assigns a valuation rating of 3 / 10 to RELX PLC - SPON ADR (RELX). This can be considered as Overvalued.
How profitable is RELX PLC - SPON ADR (RELX) stock?
RELX PLC - SPON ADR (RELX) has a profitability rating of 9 / 10.
What are the PE and PB ratios of RELX PLC - SPON ADR (RELX) stock?
The Price/Earnings (PE) ratio for RELX PLC - SPON ADR (RELX) is 30.38 and the Price/Book (PB) ratio is 26.83.
Is the dividend of RELX PLC - SPON ADR sustainable?
The dividend rating of RELX PLC - SPON ADR (RELX) is 5 / 10 and the dividend payout ratio is 60.42%.