RELX PLC (REN.AS) Stock Fundamental Analysis
AMS:REN - GB00B2B0DG97 - Common Stock
40.74 EUR
-0.36 (-0.88%)
We assign a fundamental rating of 6 out of 10 to REN. REN was compared to 28 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
REN had positive earnings in the past year.
In the past year REN had a positive cash flow from operations.
In the past 5 years REN has always been profitable.
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 13.44%, REN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 88.30%, REN belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
REN has a Return On Invested Capital of 25.89%. This is amongst the best in the industry. REN outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REN is significantly above the industry average of 11.05%.
The 3 year average ROIC (19.62%) for REN is below the current ROIC(25.89%), indicating increased profibility in the last year.
| 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
REN has a Profit Margin of 20.19%. This is amongst the best in the industry. REN outperforms 100.00% of its industry peers.
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 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of REN has grown nicely.
REN's Gross Margin of 65.48% is in line compared to the rest of the industry. REN outperforms 57.14% of its industry peers.
REN's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, REN has less shares outstanding
Compared to 1 year ago, REN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.47 indicates that REN is not in any danger for bankruptcy at the moment.
REN has a Altman-Z score of 4.47. This is amongst the best in the industry. REN outperforms 89.29% of its industry peers.
The Debt to FCF ratio of REN is 3.34, which is a good value as it means it would take REN, 3.34 years of fcf income to pay off all of its debts.
REN has a Debt to FCF ratio of 3.34. This is in the better half of the industry: REN outperforms 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.47 |
ROIC/WACC2.96
WACC8.74%
2.3 Liquidity
A Current Ratio of 0.47 indicates that REN may have some problems paying its short term obligations.
REN has a Current ratio of 0.47. This is amonst the worse of the industry: REN underperforms 85.71% of its industry peers.
A Quick Ratio of 0.42 indicates that REN may have some problems paying its short term obligations.
REN's Quick ratio of 0.42 is on the low side compared to the rest of the industry. REN is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
REN 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, REN shows a small growth in Earnings Per Share. The EPS has been growing by 5.94% on average per year.
The Revenue has been growing slightly by 2.48% in the past 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)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
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.06% yearly.
EPS Next Y6.8%
EPS Next 2Y8.31%
EPS Next 3Y8.62%
EPS Next 5Y8.46%
Revenue Next Year2.12%
Revenue Next 2Y4.28%
Revenue Next 3Y4.97%
Revenue Next 5Y6.06%
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 34.24, which means the current valuation is very expensive for REN.
The rest of the industry has a similar Price/Earnings ratio as REN.
Compared to an average S&P500 Price/Earnings ratio of 27.03, REN is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 24.31, the valuation of REN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, REN is valued a bit more expensive than 60.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. REN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.24 | ||
| Fwd PE | 24.31 |
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.
REN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. REN is more expensive than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.58 | ||
| EV/EBITDA | 19.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of REN may justify a higher PE ratio.
PEG (NY)5.03
PEG (5Y)5.77
EPS Next 2Y8.31%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.79%, REN has a reasonable but not impressive dividend return.
REN's Dividend Yield is comparable with the industry average which is at 3.31.
REN's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 60.42% of its income as dividend. This is not a sustainable payout ratio.
REN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.42%
EPS Next 2Y8.31%
EPS Next 3Y8.62%
AMS:REN (8/26/2025, 5:29:38 PM)
40.74
-0.36 (-0.88%)
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 Cap74.49B
Analysts80.83
Price Target52.86 (29.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.69
Dividend Growth(5Y)6.76%
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)1.08%
PT rev (3m)-1.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-3.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.67%
Revenue NY rev (3m)-2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.24 | ||
| Fwd PE | 24.31 | ||
| P/S | 6.77 | ||
| P/FCF | 28.58 | ||
| P/OCF | 23.34 | ||
| P/B | 29.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.84 |
EPS(TTM)1.19
EY2.92%
EPS(NY)1.68
Fwd EY4.11%
FCF(TTM)1.43
FCFY3.5%
OCF(TTM)1.75
OCFY4.28%
SpS6.02
BVpS1.38
TBVpS-5.46
PEG (NY)5.03
PEG (5Y)5.77
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 | 4.47 |
F-Score7
WACC8.74%
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)3.27%
EPS 3Y10.76%
EPS 5Y5.94%
EPS Q2Q%6.72%
EPS Next Y6.8%
EPS Next 2Y8.31%
EPS Next 3Y8.62%
EPS Next 5Y8.46%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2.12%
Revenue Next 2Y4.28%
Revenue Next 3Y4.97%
Revenue Next 5Y6.06%
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%