RELX PLC (REN.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:REN - GB00B2B0DG97 - Common Stock
33.8 EUR
+0.08 (+0.24%)
Overall REN gets a fundamental rating of 6 out of 10. We evaluated REN against 34 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 quite expensive at the moment. It does show a decent growth rate.
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.
- Each year in the past 5 years REN has been profitable.
- In the past 5 years REN always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of REN (13.44%) is better than 100.00% of its industry peers.
- The Return On Equity of REN (88.30%) is better than 91.18% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 26.28%, REN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for REN is significantly above the industry average of 10.77%.
- The last Return On Invested Capital (26.28%) for REN is above the 3 year average (19.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 88.3% | ||
| ROIC | 26.28% |
ROA(3y)11.68%
ROA(5y)10.86%
ROE(3y)50.1%
ROE(5y)50.83%
ROIC(3y)19.85%
ROIC(5y)17.4%
1.3 Margins
- With an excellent Profit Margin value of 20.19%, REN belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
- REN's Profit Margin has been stable in the last couple of years.
- The Operating Margin of REN (30.63%) is better than 97.06% of its industry peers.
- In the last couple of years the Operating Margin of REN has grown nicely.
- REN has a Gross Margin of 65.48%. This is comparable to the rest of the industry: REN outperforms 55.88% of its industry peers.
- REN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.63% | ||
| PM (TTM) | 20.19% | ||
| GM | 65.48% |
OM growth 3Y5.55%
OM growth 5Y3%
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 REN is creating value.
- REN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for REN has been reduced compared to 5 years ago.
- Compared to 1 year ago, REN has an improved debt to assets ratio.
2.2 Solvency
- REN has an Altman-Z score of 3.91. This indicates that REN is financially healthy and has little risk of bankruptcy at the moment.
- REN has a Altman-Z score of 3.91. This is amongst the best in the industry. REN outperforms 91.18% 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 better Debt to FCF ratio (3.34) than 79.41% 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 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 3.91 |
ROIC/WACC3.01
WACC8.72%
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.
- The Current ratio of REN (0.47) is worse than 82.35% of its industry peers.
- A Quick Ratio of 0.42 indicates that REN may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.42, REN is doing worse than 85.29% of the companies in the same industry.
| 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 4.00%.
- REN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.93% yearly.
- Looking at the last year, REN shows a small growth in Revenue. The Revenue has grown by 2.48% 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)4%
EPS 3Y10.74%
EPS 5Y5.93%
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 8.69% yearly.
- REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y6.91%
EPS Next 2Y8.6%
EPS Next 3Y8.8%
EPS Next 5Y8.69%
Revenue Next Year1.95%
Revenue Next 2Y4.25%
Revenue Next 3Y4.96%
Revenue Next 5Y5.48%
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
- Based on the Price/Earnings ratio of 28.40, the valuation of REN can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as REN.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, REN is valued at the same level.
- The Price/Forward Earnings ratio is 20.21, which indicates a rather expensive current valuation of REN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of REN is on the same level as its industry peers.
- REN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.4 | ||
| Fwd PE | 20.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, REN is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as REN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.76 | ||
| EV/EBITDA | 20.31 |
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.
- REN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.11
PEG (5Y)4.79
EPS Next 2Y8.6%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
- REN has a Yearly Dividend Yield of 2.06%. Purely for dividend investing, there may be better candidates out there.
- REN's Dividend Yield is comparable with the industry average which is at 2.53.
- Compared to an average S&P500 Dividend Yield of 1.82, REN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
- The dividend of REN is nicely growing with an annual growth rate of 6.11%!
Dividend Growth(5Y)6.11%
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 2Y8.6%
EPS Next 3Y8.8%
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 2 / 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 28.4 and the Price/Book (PB) ratio is 24.6.
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.