RELX PLC - SPON ADR (RELX) Stock Fundamental Analysis
NYSE:RELX - New York Stock Exchange, Inc. - US7595301083 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to RELX. RELX was compared to 81 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 quite expensive at the moment. 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.
In the past 5 years RELX has always been profitable.
In the past 5 years RELX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.78%, RELX belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
RELX has a better Return On Equity (55.56%) than 92.59% of its industry peers.
RELX's Return On Invested Capital of 21.31% is amongst the best of the industry. RELX outperforms 92.59% 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 12.78%.
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
The Profit Margin of RELX (20.50%) is better than 91.36% 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 96.30% of its industry peers.
In the last couple of years the Operating Margin of RELX has grown nicely.
The Gross Margin of RELX (65.02%) is better than 76.54% 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
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
Compared to 1 year ago, RELX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.86 indicates that RELX is not in any danger for bankruptcy at the moment.
The Altman-Z score of RELX (4.86) is better than 83.95% 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.
RELX has a better Debt to FCF ratio (3.08) than 61.73% of its industry peers.
RELX has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
RELX's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. RELX is outperformed by 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.86 |
ROIC/WACC2.42
WACC8.82%
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 92.59% of its industry peers.
A Quick Ratio of 0.47 indicates that RELX may have some problems paying its short term obligations.
RELX has a Quick ratio of 0.47. This is amonst the worse of the industry: RELX underperforms 92.59% 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.
RELX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.98%.
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
The Earnings Per Share is expected to grow by 8.23% 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 5.68% yearly.
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.23%
Revenue Next Year4.92%
Revenue Next 2Y6.06%
Revenue Next 3Y5.99%
Revenue Next 5Y5.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 37.10 indicates a quite expensive valuation of RELX.
Compared to the rest of the industry, the Price/Earnings ratio of RELX indicates a slightly more expensive valuation: RELX is more expensive than 64.20% of the companies listed in the same industry.
RELX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 27.98 indicates a quite expensive valuation of RELX.
RELX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RELX is more expensive than 60.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, RELX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.1 | ||
| Fwd PE | 27.98 |
4.2 Price Multiples
RELX's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RELX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.59 | ||
| EV/EBITDA | 21.39 |
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)3.6
PEG (5Y)6.25
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
RELX has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.09, RELX pays a better dividend. On top of this RELX pays more dividend than 82.72% of the companies listed in the same industry.
RELX's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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.
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
57.96% of the earnings are spent on dividend by RELX. 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.
DP57.96%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
52.31
-0.18 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.82%
Inst Owner Change3.26%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap96.01B
Analysts80.83
Price Target62.01 (18.54%)
Short Float %0.09%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.83
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)0.18%
PT rev (3m)6.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.04%
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 | 37.1 | ||
| Fwd PE | 27.98 | ||
| P/S | 7.56 | ||
| P/FCF | 33.59 | ||
| P/OCF | 27.36 | ||
| P/B | 20.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.39 |
EPS(TTM)1.41
EY2.7%
EPS(NY)1.87
Fwd EY3.57%
FCF(TTM)1.56
FCFY2.98%
OCF(TTM)1.91
OCFY3.66%
SpS6.92
BVpS2.55
TBVpS-5.79
PEG (NY)3.6
PEG (5Y)6.25
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 | 4.86 |
F-Score9
WACC8.82%
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 5Y8.23%
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 5Y5.68%
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%