RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
USA - NYSE:RELX - US7595301083 - ADR
46.57 USD
+0.62 (+1.35%)
46.57 USD
0 (0%)
RELX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. While RELX has a great profitability rating, 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.
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 13.44%. This is amongst the best in the industry. RELX outperforms 90.70% of its industry peers.
RELX has a better Return On Equity (88.30%) than 95.35% of its industry peers.
With an excellent Return On Invested Capital value of 25.89%, RELX belongs to the best of the industry, outperforming 96.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RELX is significantly above the industry average of 13.28%.
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 has a Profit Margin of 20.19%. This is amongst the best in the industry. RELX outperforms 91.86% of its industry peers.
RELX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 30.17%, RELX belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
RELX's Operating Margin has improved in the last couple of years.
RELX's Gross Margin of 65.48% is fine compared to the rest of the industry. RELX outperforms 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
RELX has less shares outstanding than it did 5 years ago.
RELX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.36 indicates that RELX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.36, RELX is doing good in the industry, outperforming 79.07% 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.
Looking at the Debt to FCF ratio, with a value of 3.34, RELX is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
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 | 4.36 |
ROIC/WACC2.92
WACC8.88%
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.
The Current ratio of RELX (0.47) is worse than 89.53% of its industry peers.
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 Quick ratio of 0.42. This is amonst the worse of the industry: RELX underperforms 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 3.27%.
RELX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
RELX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.48%.
Measured over the past years, RELX shows a small growth in Revenue. The Revenue has been growing by 3.68% on average per year.
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.
RELX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.25% yearly.
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.
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
With a Price/Earnings ratio of 33.03, RELX can be considered very expensive at the moment.
RELX's Price/Earnings is on the same level as the industry average.
RELX is valuated rather expensively when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.56, the valuation of RELX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RELX.
The average S&P500 Price/Forward Earnings ratio is at 22.92. RELX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.03 | ||
| Fwd PE | 23.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RELX is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as RELX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.15 | ||
| EV/EBITDA | 19.19 |
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)4.84
PEG (5Y)5.56
EPS Next 2Y8.41%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, RELX has a reasonable but not impressive dividend return.
RELX's Dividend Yield is rather good when compared to the industry average which is at 3.86. RELX pays more dividend than 83.72% of the companies in the same industry.
RELX's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of RELX is nicely growing with an annual growth rate of 6.76%!
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)6.76%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
60.42% of the earnings are spent on dividend by RELX. 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 2Y8.41%
EPS Next 3Y8.71%
46.57
+0.62 (+1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners59.82%
Inst Owner Change0.14%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap84.75B
Revenue(TTM)9.53B
Net Income(TTM)1.93B
Analysts81.74
Price Target60.79 (30.53%)
Short Float %0.07%
Short Ratio0.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.81
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)0.43%
EPS NY rev (3m)-3.3%
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 | 33.03 | ||
| Fwd PE | 23.56 | ||
| P/S | 6.66 | ||
| P/FCF | 28.15 | ||
| P/OCF | 23 | ||
| P/B | 29.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.19 |
EPS(TTM)1.41
EY3.03%
EPS(NY)1.98
Fwd EY4.24%
FCF(TTM)1.65
FCFY3.55%
OCF(TTM)2.03
OCFY4.35%
SpS6.99
BVpS1.6
TBVpS-6.34
PEG (NY)4.84
PEG (5Y)5.56
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 | 4.36 |
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%.