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. While RELX belongs to the best of the industry regarding profitability, 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
In the past year RELX was profitable.
In the past year RELX had a positive cash flow from operations.
RELX had positive earnings in each of the past 5 years.
RELX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.78%, RELX belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
RELX has a better Return On Equity (55.56%) than 92.68% of its industry peers.
RELX has a better Return On Invested Capital (21.31%) than 95.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RELX 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
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 has a Operating Margin of 29.87%. This is amongst the best in the industry. RELX outperforms 96.34% of its industry peers.
RELX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 65.02%, RELX is doing good in the industry, outperforming 76.83% of the companies in the same industry.
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
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.
Compared to 5 years ago, RELX has less shares outstanding
The debt/assets ratio for RELX has been reduced compared to a year ago.
2.2 Solvency
RELX has an Altman-Z score of 4.87. This indicates that RELX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.87, RELX belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 3.08, RELX is doing good in the industry, outperforming 62.20% of the companies in the same industry.
RELX has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
RELX has a worse Debt to Equity ratio (1.69) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.87 |
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's Current ratio of 0.52 is on the low side compared to the rest of the industry. RELX is outperformed by 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.
RELX has a Quick ratio of 0.47. This is amonst the worse of the industry: RELX underperforms 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.
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 2.98% 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
Based on estimates for the next years, RELX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.06% on average per year.
RELX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.52% yearly.
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.
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
RELX is valuated quite expensively with a Price/Earnings ratio of 37.38.
64.63% of the companies in the same industry are cheaper than RELX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RELX to the average of the S&P500 Index (27.53), we can say RELX is valued slightly more expensively.
With a Price/Forward Earnings ratio of 28.26, RELX can be considered very expensive at the moment.
62.20% of the companies in the same industry are cheaper than RELX, based on the Price/Forward Earnings ratio.
RELX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 28.26 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.94 | ||
| EV/EBITDA | 21.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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
With a Yearly Dividend Yield of 1.58%, RELX has a reasonable but not impressive dividend return.
RELX's Dividend Yield is a higher than the industry average which is at 2.11.
Compared to the average S&P500 Dividend Yield of 2.34, RELX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
On average, the dividend of RELX grows each year by 6.76%, which is quite nice.
RELX has paid a dividend for at least 10 years, which is 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 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%
NYSE:RELX (7/23/2025, 12:16:05 PM)
53.08
+0.4 (+0.76%)
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 Cap97.21B
Analysts80.83
Price Target60.56 (14.09%)
Short Float %0.06%
Short Ratio1.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 | 37.38 | ||
| Fwd PE | 28.26 | ||
| P/S | 7.64 | ||
| P/FCF | 33.94 | ||
| P/OCF | 27.64 | ||
| P/B | 20.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.44 |
EPS(TTM)1.42
EY2.68%
EPS(NY)1.88
Fwd EY3.54%
FCF(TTM)1.56
FCFY2.95%
OCF(TTM)1.92
OCFY3.62%
SpS6.95
BVpS2.56
TBVpS-5.82
PEG (NY)3.63
PEG (5Y)6.3
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 | 4.87 |
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%