RELX PLC - SPON ADR (RELX)
US7595301083 - ADR
We assign a fundamental rating of 5 out of 10 to RELX. RELX was compared to 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.
RELX had a positive operating cash flow in the past year.
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
RELX has a Return On Assets of 11.94%. This is amongst the best in the industry. RELX outperforms 86.42% of its industry peers.
RELX's Return On Equity of 51.47% is amongst the best of the industry. RELX outperforms 92.59% of its industry peers.
RELX has a better Return On Invested Capital (21.20%) than 86.42% of its industry peers.
RELX had an Average Return On Invested Capital over the past 3 years of 17.33%. This is significantly above the industry average of 11.71%.
The 3 year average ROIC (17.33%) for RELX is below the current ROIC(21.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.94% | ||
| ROE | 51.47% | ||
| ROIC | 21.2% |
ROA(3y)10.96%
ROA(5y)10.49%
ROE(3y)46.75%
ROE(5y)53.61%
ROIC(3y)17.33%
ROIC(5y)16.81%
1.3 Margins
Looking at the Profit Margin, with a value of 19.44%, RELX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
RELX's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 28.77%, RELX belongs to the best of the industry, outperforming 91.36% of the companies in the same industry.
In the last couple of years the Operating Margin of RELX has grown nicely.
RELX's Gross Margin of 64.89% is fine compared to the rest of the industry. RELX outperforms 79.01% of its industry peers.
RELX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.77% | ||
| PM (TTM) | 19.44% | ||
| GM | 64.89% |
OM growth 3Y5.18%
OM growth 5Y2.22%
PM growth 3Y4.14%
PM growth 5Y0.48%
GM growth 3Y-0.06%
GM growth 5Y0.06%
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
RELX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RELX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.55 indicates that RELX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.55, RELX belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
The Debt to FCF ratio of RELX is 3.28, which is a good value as it means it would take RELX, 3.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.28, RELX is in line with its industry, outperforming 59.26% of the companies in the same industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that RELX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.56, RELX is not doing good in the industry: 86.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 4.55 |
ROIC/WACC2.58
WACC8.2%
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 Current ratio of 0.52. This is amonst the worse of the industry: RELX underperforms 93.83% 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's Quick ratio of 0.47 is on the low side compared to the rest of the industry. RELX is outperformed by 93.83% of its industry peers.
| 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 11.55%, which is quite good.
The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
Looking at the last year, RELX shows a small growth in Revenue. The Revenue has grown by 7.11% in the last year.
RELX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.10% yearly.
EPS 1Y (TTM)11.55%
EPS 3Y12.48%
EPS 5Y6.12%
EPS growth Q2Q5.09%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y8.82%
Revenue growth 5Y4.1%
Revenue growth Q2Q1.7%
3.2 Future
The Earnings Per Share is expected to grow by 8.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.14% on average over the next years.
EPS Next Y10.67%
EPS Next 2Y9.78%
EPS Next 3Y9.77%
EPS Next 5Y8.48%
Revenue Next Year5.8%
Revenue Next 2Y5.77%
Revenue Next 3Y6.14%
Revenue Next 5Y6.14%
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
A Price/Earnings ratio of 30.18 indicates a quite expensive valuation of RELX.
Based on the Price/Earnings ratio, RELX is valued a bit more expensive than 65.43% of the companies in the same industry.
RELX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.22, RELX can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RELX is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
RELX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.18 | ||
| Fwd PE | 27.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RELX is valued a bit more expensive than the industry average as 60.49% of the companies are valued more cheaply.
RELX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.88 | ||
| EV/EBITDA | 20.71 |
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)2.83
PEG (5Y)4.93
EPS Next 2Y9.78%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.01, RELX pays a better dividend. On top of this RELX pays more dividend than 83.95% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, RELX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of RELX is nicely growing with an annual growth rate of 6.84%!
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)6.84%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
RELX pays out 59.46% of its income as dividend. This is a bit on the high side, but may be sustainable.
RELX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.46%
EPS Next 2Y9.78%
EPS Next 3Y9.77%
RELX PLC - SPON ADR
NYSE:RELX (5/17/2024, 7:23:09 PM)
After market: 44.07 0 (0%)44.07
+0.15 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap82.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.18 | ||
| Fwd PE | 27.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.83
PEG (5Y)4.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.94% | ||
| ROE | 51.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.77% | ||
| PM (TTM) | 19.44% | ||
| GM | 64.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.55%
EPS 3Y12.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.11%
Revenue growth 3Y8.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y