RELX PLC (REN.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:REN - GB00B2B0DG97 - Common Stock
35.48 EUR
-0.26 (-0.73%)
Overall REN gets a fundamental rating of 6 out of 10. We evaluated REN against 32 industry peers in the Professional Services industry. While REN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. REN 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 REN was profitable.
REN had a positive operating cash flow in the past year.
REN had positive earnings in each of the past 5 years.
In the past 5 years REN always reported a positive cash flow from operatings.
1.2 Ratios
REN has a better Return On Assets (13.44%) than 96.88% of its industry peers.
With an excellent Return On Equity value of 88.30%, REN belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
REN has a better Return On Invested Capital (25.89%) than 96.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REN is significantly above the industry average of 10.10%.
The last Return On Invested Capital (25.89%) for REN 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
With an excellent Profit Margin value of 20.19%, REN belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Profit Margin of REN has remained more or less at the same level.
Looking at the Operating Margin, with a value of 30.17%, REN belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of REN has grown nicely.
REN has a Gross Margin (65.48%) which is in line with its industry peers.
In the last couple of years the Gross Margin of REN 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), REN is creating value.
The number of shares outstanding for REN has been reduced compared to 1 year ago.
REN has less shares outstanding than it did 5 years ago.
REN has a better debt/assets ratio than last year.
2.2 Solvency
REN has an Altman-Z score of 4.06. This indicates that REN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of REN (4.06) is better than 96.88% of its industry peers.
REN has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as REN would need 3.34 years to pay back of all of its debts.
The Debt to FCF ratio of REN (3.34) is better than 75.00% of its industry peers.
REN has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
REN has a worse Debt to Equity ratio (2.57) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.06 |
ROIC/WACC2.96
WACC8.75%
2.3 Liquidity
REN has a Current Ratio of 0.47. This is a bad value and indicates that REN is not financially healthy enough and could expect problems in meeting its short term obligations.
REN's Current ratio of 0.47 is on the low side compared to the rest of the industry. REN is outperformed by 87.50% of its industry peers.
A Quick Ratio of 0.42 indicates that REN may have some problems paying its short term obligations.
The Quick ratio of REN (0.42) is worse than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.10% over the past year.
Measured over the past 5 years, REN shows a small growth in Earnings Per Share. The EPS has been growing by 5.94% on average per year.
REN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.48%.
The Revenue has been growing slightly by 3.68% on average over the past years.
EPS 1Y (TTM)3.1%
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
REN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y6.91%
EPS Next 2Y8.6%
EPS Next 3Y8.8%
EPS Next 5Y9.23%
Revenue Next Year1.95%
Revenue Next 2Y4.25%
Revenue Next 3Y4.96%
Revenue Next 5Y6.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 30.07, which means the current valuation is very expensive for REN.
Based on the Price/Earnings ratio, REN is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.17, REN is valued at the same level.
REN is valuated rather expensively with a Price/Forward Earnings ratio of 21.22.
65.63% of the companies in the same industry are cheaper than REN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, REN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.07 | ||
| Fwd PE | 21.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REN indicates a slightly more expensive valuation: REN is more expensive than 71.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REN indicates a slightly more expensive valuation: REN is more expensive than 65.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.95 | ||
| EV/EBITDA | 17.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates REN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of REN may justify a higher PE ratio.
PEG (NY)4.35
PEG (5Y)5.07
EPS Next 2Y8.6%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
REN has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
REN's Dividend Yield is comparable with the industry average which is at 2.67.
REN's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
On average, the dividend of REN grows each year by 6.11%, which is quite nice.
Dividend Growth(5Y)6.11%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
60.42% of the earnings are spent on dividend by REN. This is not a sustainable payout ratio.
The dividend of REN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.42%
EPS Next 2Y8.6%
EPS Next 3Y8.8%
AMS:REN (1/6/2026, 7:00:00 PM)
35.48
-0.26 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners60.06%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap64.54B
Revenue(TTM)9.53B
Net Income(TTM)1.93B
Analysts81.74
Price Target47.14 (32.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.63
Dividend Growth(5Y)6.11%
DP60.42%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)-0.45%
PT rev (3m)-9.26%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.07 | ||
| Fwd PE | 21.22 | ||
| P/S | 5.91 | ||
| P/FCF | 24.95 | ||
| P/OCF | 20.38 | ||
| P/B | 25.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.55 |
EPS(TTM)1.18
EY3.33%
EPS(NY)1.67
Fwd EY4.71%
FCF(TTM)1.42
FCFY4.01%
OCF(TTM)1.74
OCFY4.91%
SpS6.01
BVpS1.37
TBVpS-5.45
PEG (NY)4.35
PEG (5Y)5.07
Graham Number6.04
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 | 4.06 |
F-Score7
WACC8.75%
ROIC/WACC2.96
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)3.1%
EPS 3Y10.76%
EPS 5Y5.94%
EPS Q2Q%6.72%
EPS Next Y6.91%
EPS Next 2Y8.6%
EPS Next 3Y8.8%
EPS Next 5Y9.23%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year1.95%
Revenue Next 2Y4.25%
Revenue Next 3Y4.96%
Revenue Next 5Y6.01%
EBIT growth 1Y3.49%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year23.68%
EBIT Next 3Y12.25%
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 / REN.AS FAQ
Can you provide the ChartMill fundamental rating for RELX PLC?
ChartMill assigns a fundamental rating of 6 / 10 to REN.AS.
What is the valuation status of RELX PLC (REN.AS) stock?
ChartMill assigns a valuation rating of 1 / 10 to RELX PLC (REN.AS). This can be considered as Overvalued.
Can you provide the profitability details for RELX PLC?
RELX PLC (REN.AS) has a profitability rating of 9 / 10.
What is the valuation of RELX PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RELX PLC (REN.AS) is 30.07 and the Price/Book (PB) ratio is 25.83.
What is the expected EPS growth for RELX PLC (REN.AS) stock?
The Earnings per Share (EPS) of RELX PLC (REN.AS) is expected to grow by 6.91% in the next year.