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
RELX had positive earnings in the past year.
RELX had a positive operating cash flow in the past year.
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
RELX has a Return On Assets of 13.44%. This is amongst the best in the industry. RELX outperforms 90.24% of its industry peers.
RELX has a better Return On Equity (88.30%) than 95.12% of its industry peers.
RELX's Return On Invested Capital of 25.89% is amongst the best of the industry. RELX outperforms 96.34% 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 12.36%.
The last Return On Invested Capital (25.89%) for RELX is above the 3 year average (19.62%), which is a sign of increasing profitability.
| 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 92.68% 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 30.17% is amongst the best of the industry. RELX outperforms 96.34% of its industry peers.
RELX's Operating Margin has improved in the last couple of years.
RELX has a Gross Margin of 65.48%. This is in the better half of the industry: RELX outperforms 76.83% of its industry peers.
In the last couple of years the Gross Margin of RELX has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RELX 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
The debt/assets ratio for RELX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.80 indicates that RELX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.80, RELX belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
RELX has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as RELX would need 3.34 years to pay back of all of its debts.
RELX has a Debt to FCF ratio of 3.34. This is in the better half of the industry: RELX outperforms 60.98% of its industry peers.
RELX has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
RELX's Debt to Equity ratio of 2.57 is on the low side compared to the rest of the industry. RELX is outperformed by 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.8 |
ROIC/WACC2.95
WACC8.77%
2.3 Liquidity
A Current Ratio of 0.47 indicates that RELX may have some problems paying its short term obligations.
RELX has a Current ratio of 0.47. This is amonst the worse of the industry: RELX underperforms 93.90% 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's Quick ratio of 0.42 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 | 0.47 | ||
| 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%.
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.
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
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.
The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.06%
Revenue Next Year2.56%
Revenue Next 2Y4.57%
Revenue Next 3Y5.25%
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.
Based on the Price/Earnings ratio, RELX is valued a bit more expensive than the industry average as 65.85% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.82, RELX is valued a bit more expensive.
With a Price/Forward Earnings ratio of 25.51, RELX can be considered very expensive at the moment.
RELX's Price/Forward Earnings ratio is in line with the industry average.
RELX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
RELX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RELX is more expensive than 60.98% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RELX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.76 | ||
| EV/EBITDA | 21.65 |
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
RELX has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.18, RELX pays a better dividend. On top of this RELX pays more dividend than 80.49% of the companies listed in the same industry.
RELX's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 60.42% of its income as dividend. This is not a sustainable payout ratio.
RELX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.42%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
51.59
-0.3 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.82%
Inst Owner Change-0.09%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap94.36B
Analysts80.83
Price Target60.56 (17.39%)
Short Float %0.06%
Short Ratio1.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.8
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)-1.33%
PT rev (3m)-2.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.25%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 25.51 | ||
| P/S | 7.52 | ||
| P/FCF | 31.76 | ||
| P/OCF | 25.95 | ||
| P/B | 32.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.65 |
EPS(TTM)1.38
EY2.67%
EPS(NY)2.02
Fwd EY3.92%
FCF(TTM)1.62
FCFY3.15%
OCF(TTM)1.99
OCFY3.85%
SpS6.86
BVpS1.57
TBVpS-6.22
PEG (NY)3.63
PEG (5Y)6.3
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%
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-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 | 4.8 |
F-Score7
WACC8.77%
ROIC/WACC2.95
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 Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.06%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2.56%
Revenue Next 2Y4.57%
Revenue Next 3Y5.25%
Revenue Next 5Y5.52%
EBIT growth 1Y4.2%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year26.45%
EBIT Next 3Y13.05%
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%