RELX PLC (REN.AS) Stock Fundamental Analysis
AMS:REN - Euronext Amsterdam - GB00B2B0DG97 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to REN. REN was compared to 27 industry peers in the Professional Services industry. REN scores excellent on profitability, but 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.
REN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.78%, REN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
REN's Return On Equity of 55.56% is amongst the best of the industry. REN outperforms 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.31%, REN belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REN is significantly above the industry average of 11.35%.
The last Return On Invested Capital (21.31%) for REN 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
With an excellent Profit Margin value of 20.50%, REN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
REN's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 29.87%, REN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of REN has grown nicely.
With a decent Gross Margin value of 65.02%, REN is doing good in the industry, outperforming 60.71% of the companies in the same industry.
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 | 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
REN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
REN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, REN has less shares outstanding
The debt/assets ratio for REN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.09 indicates that REN is not in any danger for bankruptcy at the moment.
The Altman-Z score of REN (5.09) is better than 96.43% of its industry peers.
The Debt to FCF ratio of REN is 3.08, which is a good value as it means it would take REN, 3.08 years of fcf income to pay off all of its debts.
REN has a Debt to FCF ratio of 3.08. This is in the better half of the industry: REN outperforms 78.57% of its industry peers.
REN has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
REN's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. REN is outperformed by 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 5.09 |
ROIC/WACC2.42
WACC8.79%
2.3 Liquidity
REN has a Current Ratio of 0.52. This is a bad value and indicates that REN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.52, REN is doing worse than 82.14% of the companies in the same industry.
REN has a Quick Ratio of 0.52. 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 has a worse Quick ratio (0.47) than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
REN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.08%, which is quite good.
REN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
Looking at the last year, REN shows a small growth in Revenue. The Revenue has grown by 2.98% in the last year.
REN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.68% yearly.
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
Based on estimates for the next years, REN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.11% on average per year.
The Revenue is expected to grow by 5.99% on average over the next years.
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.11%
Revenue Next Year5.42%
Revenue Next 2Y6.41%
Revenue Next 3Y6.4%
Revenue Next 5Y5.99%
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 39.90 indicates a quite expensive valuation of REN.
The rest of the industry has a similar Price/Earnings ratio as REN.
When comparing the Price/Earnings ratio of REN to the average of the S&P500 Index (28.18), we can say REN is valued slightly more expensively.
With a Price/Forward Earnings ratio of 30.19, REN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, REN is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of REN to the average of the S&P500 Index (20.81), we can say REN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.9 | ||
| Fwd PE | 30.19 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than REN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, REN is valued a bit more expensive than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.7 | ||
| EV/EBITDA | 22.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
REN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.87
PEG (5Y)6.72
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, REN has a reasonable but not impressive dividend return.
REN's Dividend Yield is comparable with the industry average which is at 3.12.
REN's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
On average, the dividend of REN grows each year by 6.76%, which is quite nice.
Dividend Growth(5Y)6.76%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
REN pays out 57.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
REN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP57.96%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
AMS:REN (5/2/2025, 7:00:00 PM)
48.28
+0.5 (+1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.19%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap88.86B
Analysts80.83
Price Target53.41 (10.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0.7
Dividend Growth(5Y)6.76%
DP57.96%
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)-2.48%
PT rev (3m)2.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.9 | ||
| Fwd PE | 30.19 | ||
| P/S | 8.04 | ||
| P/FCF | 35.7 | ||
| P/OCF | 29.07 | ||
| P/B | 21.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.63 |
EPS(TTM)1.21
EY2.51%
EPS(NY)1.6
Fwd EY3.31%
FCF(TTM)1.35
FCFY2.8%
OCF(TTM)1.66
OCFY3.44%
SpS6.01
BVpS2.22
TBVpS-5.03
PEG (NY)3.87
PEG (5Y)6.72
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 | 5.09 |
F-Score9
WACC8.79%
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 5Y8.11%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.81%
Revenue Next Year5.42%
Revenue Next 2Y6.41%
Revenue Next 3Y6.4%
Revenue Next 5Y5.99%
EBIT growth 1Y6.9%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year27.81%
EBIT Next 3Y13.86%
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%