RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
USA - NYSE:RELX - US7595301083 - ADR
46.64 USD
+0.07 (+0.15%)
46.55 USD
-0.09 (-0.19%)
Overall RELX gets a fundamental rating of 6 out of 10. We evaluated RELX against 86 industry peers in the Professional Services industry. RELX scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, RELX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
RELX had positive earnings in the past year.
In the past year RELX had a positive cash flow from operations.
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
RELX has a better Return On Assets (13.44%) than 91.86% of its industry peers.
The Return On Equity of RELX (88.30%) is better than 96.51% of its industry peers.
RELX's Return On Invested Capital of 25.89% is amongst the best of the industry. RELX outperforms 96.51% 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 13.31%.
The 3 year average ROIC (19.62%) for RELX 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
RELX's Profit Margin of 20.19% is amongst the best of the industry. RELX outperforms 91.86% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
RELX's Operating Margin of 30.17% is amongst the best of the industry. RELX outperforms 97.67% 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 77.91% of its industry peers.
RELX's Gross Margin has been stable in the last couple of years.
| 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
RELX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RELX has less shares outstanding
The number of shares outstanding for RELX has been reduced compared to 5 years ago.
Compared to 1 year ago, RELX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.40 indicates that RELX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.40, RELX belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
The Debt to FCF ratio of RELX is 3.34, which is a good value as it means it would take RELX, 3.34 years of fcf income to pay off all of its debts.
RELX has a better Debt to FCF ratio (3.34) than 62.79% 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.
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 | 4.4 |
ROIC/WACC2.92
WACC8.88%
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: 89.53% 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.
With a Quick ratio value of 0.42, RELX is not doing good in the industry: 90.70% of the companies in the same industry are doing better.
| 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.
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 2.48% 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)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 8.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.25% on average over the next years.
EPS Next Y6.82%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
EPS Next 5Y8.65%
Revenue Next Year2.04%
Revenue Next 2Y4.25%
Revenue Next 3Y4.95%
Revenue Next 5Y6.25%
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
With a Price/Earnings ratio of 33.08, RELX can be considered very expensive at the moment.
RELX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of RELX to the average of the S&P500 Index (27.08), we can say RELX is valued slightly more expensively.
RELX is valuated rather expensively with a Price/Forward Earnings ratio of 23.58.
The rest of the industry has a similar Price/Forward Earnings ratio as RELX.
The average S&P500 Price/Forward Earnings ratio is at 23.09. RELX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 23.58 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.18 | ||
| EV/EBITDA | 19.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RELX may justify a higher PE ratio.
PEG (NY)4.85
PEG (5Y)5.57
EPS Next 2Y8.41%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 3.93, RELX pays a better dividend. On top of this RELX pays more dividend than 83.72% of the companies listed in the same industry.
RELX's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
On average, the dividend of RELX grows each year by 6.76%, 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)6.76%
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.
RELX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.42%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
46.64
+0.07 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners59.82%
Inst Owner Change0.13%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap84.88B
Revenue(TTM)9.53B
Net Income(TTM)1.93B
Analysts81.74
Price Target60.79 (30.34%)
Short Float %0.06%
Short Ratio0.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)-0.56%
PT rev (3m)0.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.41%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 23.58 | ||
| P/S | 6.67 | ||
| P/FCF | 28.18 | ||
| P/OCF | 23.02 | ||
| P/B | 29.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.44 |
EPS(TTM)1.41
EY3.02%
EPS(NY)1.98
Fwd EY4.24%
FCF(TTM)1.66
FCFY3.55%
OCF(TTM)2.03
OCFY4.34%
SpS6.99
BVpS1.6
TBVpS-6.34
PEG (NY)4.85
PEG (5Y)5.57
Graham Number7.12
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 | 4.4 |
F-Score7
WACC8.88%
ROIC/WACC2.92
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 Y6.82%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
EPS Next 5Y8.65%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2.04%
Revenue Next 2Y4.25%
Revenue Next 3Y4.95%
Revenue Next 5Y6.25%
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 2 / 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 9 / 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 6.82% 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%.