RELX PLC (REN.AS)
GB00B2B0DG97 - Common Stock
Overall REN gets a fundamental rating of 5 out of 10. We evaluated REN against 30 industry peers in the Professional Services industry. REN scores excellent on profitability, but 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.
In the past 5 years REN has always been profitable.
In the past 5 years REN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.94%, REN belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
The Return On Equity of REN (51.47%) is better than 89.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.20%, REN belongs to the top of the industry, outperforming 96.43% 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 12.20%.
The last Return On Invested Capital (21.20%) for REN is above the 3 year average (17.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.94% | ||
| ROE | 51.47% | ||
| ROIC | 21.2% |
ROA(3y)10.96%
ROA(5y)10.49%
ROE(3y)46.75%
ROE(5y)53.61%
ROIC(3y)17.33%
ROIC(5y)16.81%
1.3 Margins
With an excellent Profit Margin value of 19.44%, 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 Profit Margin of REN has remained more or less at the same level.
REN's Operating Margin of 28.77% is amongst the best of the industry. REN outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of REN has grown nicely.
Looking at the Gross Margin, with a value of 64.89%, REN is in the better half of 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 | 28.77% | ||
| PM (TTM) | 19.44% | ||
| GM | 64.89% |
OM growth 3Y5.18%
OM growth 5Y2.22%
PM growth 3Y4.14%
PM growth 5Y0.48%
GM growth 3Y-0.06%
GM growth 5Y0.06%
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.
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
The debt/assets ratio for REN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.47 indicates that REN is not in any danger for bankruptcy at the moment.
REN's Altman-Z score of 4.47 is amongst the best of the industry. REN outperforms 89.29% of its industry peers.
The Debt to FCF ratio of REN is 3.28, which is a good value as it means it would take REN, 3.28 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.28, REN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that REN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.56, REN is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 4.47 |
ROIC/WACC2.59
WACC8.19%
2.3 Liquidity
A Current Ratio of 0.52 indicates that REN may have some problems paying its short term obligations.
REN has a worse Current ratio (0.52) than 92.86% of its industry peers.
A Quick Ratio of 0.47 indicates that REN may have some problems paying its short term obligations.
REN's Quick ratio of 0.47 is on the low side compared to the rest of the industry. REN is outperformed by 92.86% 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 11.55%, which is quite good.
Measured over the past 5 years, REN shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
Looking at the last year, REN shows a small growth in Revenue. The Revenue has grown by 7.11% in the last year.
REN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.10% yearly.
EPS 1Y (TTM)11.55%
EPS 3Y12.48%
EPS 5Y6.12%
EPS growth Q2Q5.09%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y8.82%
Revenue growth 5Y4.1%
Revenue growth Q2Q1.7%
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 9.77% on average per year.
REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.14% yearly.
EPS Next Y10.67%
EPS Next 2Y9.78%
EPS Next 3Y9.77%
EPS Next 5YN/A
Revenue Next Year5.8%
Revenue Next 2Y5.77%
Revenue Next 3Y6.14%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 29.21 indicates a quite expensive valuation of REN.
60.71% of the companies in the same industry are cheaper than REN, based on the Price/Earnings ratio.
REN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.20.
REN is valuated quite expensively with a Price/Forward Earnings ratio of 26.30.
Based on the Price/Forward Earnings ratio, REN is valued a bit more expensive than the industry average as 67.86% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.60. REN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 26.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REN is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, REN is valued a bit more expensive than the industry average as 67.86% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.37 | ||
| EV/EBITDA | 20.25 |
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)2.74
PEG (5Y)4.77
EPS Next 2Y9.78%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, REN has a reasonable but not impressive dividend return.
REN's Dividend Yield is comparable with the industry average which is at 2.64.
REN's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of REN is nicely growing with an annual growth rate of 6.84%!
Dividend Growth(5Y)6.84%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
59.46% of the earnings are spent on dividend by REN. This is a bit on the high side, but may be sustainable.
The dividend of REN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.46%
EPS Next 2Y9.78%
EPS Next 3Y9.77%
RELX PLC
AMS:REN (4/24/2024, 5:29:47 PM)
38.56
-0.74 (-1.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap72.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 26.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.74
PEG (5Y)4.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.94% | ||
| ROE | 51.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.77% | ||
| PM (TTM) | 19.44% | ||
| GM | 64.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.55%
EPS 3Y12.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.11%
Revenue growth 3Y8.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y