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 34 industry peers in the Professional Services industry. REN scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, REN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year REN was profitable.
In the past year REN had a positive cash flow from operations.
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
With an excellent Return On Assets value of 12.78%, REN belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
REN has a Return On Equity of 55.56%. This is amongst the best in the industry. REN outperforms 85.29% of its industry peers.
REN has a better Return On Invested Capital (21.31%) than 97.06% of its industry peers.
REN had an Average Return On Invested Capital over the past 3 years of 19.62%. This is significantly above the industry average of 10.84%.
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
REN has a better Profit Margin (20.50%) than 97.06% of its industry peers.
In the last couple of years the Profit Margin of REN has remained more or less at the same level.
REN has a better Operating Margin (29.87%) than 97.06% of its industry peers.
In the last couple of years the Operating Margin of REN has grown nicely.
The Gross Margin of REN (65.02%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), REN is creating value.
REN has less shares outstanding than it did 1 year ago.
REN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for REN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.88 indicates that REN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.88, REN belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
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 better Debt to FCF ratio (3.08) than 76.47% 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 has a Debt to Equity ratio of 1.69. This is in the lower half of the industry: REN underperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.88 |
ROIC/WACC2.43
WACC8.77%
2.3 Liquidity
A Current Ratio of 0.52 indicates that REN may have some problems paying its short term obligations.
With a Current ratio value of 0.52, REN is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
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 Quick ratio of 0.47. This is amonst the worse of the industry: REN underperforms 88.24% 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.
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 2.98%.
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 8.23% on average per year.
Based on estimates for the next years, REN will show a small growth in Revenue. The Revenue will grow by 5.68% on average per year.
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
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
With a Price/Earnings ratio of 37.70, REN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of REN indicates a slightly more expensive valuation: REN is more expensive than 61.76% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of REN to the average of the S&P500 Index (26.35), we can say REN is valued slightly more expensively.
REN is valuated quite expensively with a Price/Forward Earnings ratio of 28.56.
REN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. REN is more expensive than 64.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of REN to the average of the S&P500 Index (22.19), we can say REN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.7 | ||
| Fwd PE | 28.56 |
4.2 Price Multiples
67.65% 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 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.67 | ||
| EV/EBITDA | 21.49 |
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)3.66
PEG (5Y)6.35
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, REN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.95, REN has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, REN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of REN is nicely growing with an annual growth rate of 6.76%!
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 more than its dividend. This makes the dividend growth sustainable.
DP57.96%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
AMS:REN (6/20/2025, 7:00:00 PM)
45.62
-0.14 (-0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.82%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap83.73B
Analysts80.83
Price Target54.61 (19.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.71
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)2.23%
PT rev (3m)-1.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
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 | 37.7 | ||
| Fwd PE | 28.56 | ||
| P/S | 7.58 | ||
| P/FCF | 33.67 | ||
| P/OCF | 27.42 | ||
| P/B | 20.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.49 |
EPS(TTM)1.21
EY2.65%
EPS(NY)1.6
Fwd EY3.5%
FCF(TTM)1.35
FCFY2.97%
OCF(TTM)1.66
OCFY3.65%
SpS6.02
BVpS2.22
TBVpS-5.04
PEG (NY)3.66
PEG (5Y)6.35
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 | 4.88 |
F-Score9
WACC8.77%
ROIC/WACC2.43
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%