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. While showing a medium growth rate, RELX is valued expensive at the moment.
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.
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
With an excellent Return On Assets value of 12.78%, RELX belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
With an excellent Return On Equity value of 55.56%, RELX belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.31%, RELX belongs to the top of the industry, outperforming 90.24% 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 significantly above the industry average of 13.34%.
The last Return On Invested Capital (21.31%) for RELX is above the 3 year average (19.62%), which is a sign of increasing profitability.
| 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
RELX's Profit Margin of 20.50% is amongst the best of the industry. RELX outperforms 91.46% of its industry peers.
In the last couple of years the Profit Margin of RELX has remained more or less at the same level.
RELX's Operating Margin of 29.87% is amongst the best of the industry. RELX outperforms 93.90% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
RELX's Gross Margin of 65.02% is fine compared to the rest of the industry. RELX outperforms 76.83% of its industry peers.
RELX's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, RELX has less shares outstanding
RELX has a better debt/assets ratio than last year.
2.2 Solvency
RELX has an Altman-Z score of 5.08. This indicates that RELX is financially healthy and has little risk of bankruptcy at the moment.
RELX's Altman-Z score of 5.08 is amongst the best of the industry. RELX outperforms 82.93% of its industry peers.
RELX has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as RELX would need 3.08 years to pay back of all of its debts.
The Debt to FCF ratio of RELX (3.08) is better than 64.63% 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 | 5.08 |
ROIC/WACC2.42
WACC8.79%
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.
Looking at the Current ratio, with a value of 0.52, RELX is doing worse than 93.90% of the companies in the same industry.
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.
RELX's Quick ratio of 0.47 is on the low side compared to the rest of the industry. RELX is outperformed by 93.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.08% 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 2.98% in the last year.
The Revenue has been growing slightly by 3.68% on average over the past years.
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
Based on estimates for the next years, RELX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.11% on average per year.
Based on estimates for the next years, RELX will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.11%
Revenue Next Year5.42%
Revenue Next 2Y6.41%
Revenue Next 3Y6.4%
Revenue Next 5Y5.99%
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 39.24, RELX can be considered very expensive at the moment.
RELX's Price/Earnings ratio is a bit more expensive when compared to the industry. RELX is more expensive than 68.29% of the companies in the same industry.
RELX is valuated expensively when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.64, which means the current valuation is very expensive for RELX.
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 expensively when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 29.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RELX is valued a bit more expensive than 60.98% of the companies in the same industry.
RELX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.59 | ||
| EV/EBITDA | 22.57 |
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.
The excellent profitability rating of RELX may justify a higher PE ratio.
PEG (NY)3.81
PEG (5Y)6.61
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
RELX's Dividend Yield is rather good when compared to the industry average which is at 2.38. RELX pays more dividend than 80.49% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.43, RELX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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.
RELX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.76%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
RELX pays out 57.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of RELX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP57.96%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
54.93
-0.11 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.19%
Inst Owner Change0.85%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap101.09B
Analysts80.83
Price Target61.9 (12.69%)
Short Float %0.11%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0.81
Dividend Growth(5Y)6.76%
DP57.96%
Div Incr Years3
Div Non Decr Years3
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)3.4%
PT rev (3m)13.31%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.27%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 29.64 | ||
| P/S | 8.01 | ||
| P/FCF | 35.59 | ||
| P/OCF | 28.99 | ||
| P/B | 21.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.57 |
EPS(TTM)1.4
EY2.55%
EPS(NY)1.85
Fwd EY3.37%
FCF(TTM)1.54
FCFY2.81%
OCF(TTM)1.89
OCFY3.45%
SpS6.85
BVpS2.53
TBVpS-5.74
PEG (NY)3.81
PEG (5Y)6.61
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 | 5.08 |
F-Score9
WACC8.79%
ROIC/WACC2.42
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 5Y8.11%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.81%
Revenue Next Year5.42%
Revenue Next 2Y6.41%
Revenue Next 3Y6.4%
Revenue Next 5Y5.99%
EBIT growth 1Y6.9%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year27.81%
EBIT Next 3Y13.86%
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%