RELX PLC (REN.AS)
GB00B2B0DG97 - Common Stock
We assign a fundamental rating of 5 out of 10 to REN. REN was compared to 29 industry peers in the Professional Services industry. While REN has a great profitability rating, 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.
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
REN has a better Return On Assets (12.86%) than 100.00% of its industry peers.
REN's Return On Equity of 58.90% is amongst the best of the industry. REN outperforms 92.31% of its industry peers.
The Return On Invested Capital of REN (23.43%) is better than 96.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REN is significantly above the industry average of 12.18%.
The last Return On Invested Capital (23.43%) for REN is above the 3 year average (17.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 58.9% | ||
| ROIC | 23.43% |
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
Looking at the Profit Margin, with a value of 20.34%, 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 Profit Margin of REN has remained more or less at the same level.
REN has a better Operating Margin (29.67%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of REN has grown nicely.
REN has a Gross Margin (65.31%) which is in line with its industry peers.
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 | 29.67% | ||
| PM (TTM) | 20.34% | ||
| GM | 65.31% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), REN is creating value.
Compared to 1 year ago, REN has less shares outstanding
Compared to 5 years ago, REN has less shares outstanding
Compared to 1 year ago, REN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.86 indicates that REN is not in any danger for bankruptcy at the moment.
REN's Altman-Z score of 4.86 is amongst the best of the industry. REN outperforms 96.15% of its industry peers.
The Debt to FCF ratio of REN is 3.39, which is a good value as it means it would take REN, 3.39 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.39, REN is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
REN has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.61, REN is doing worse than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 4.86 |
ROIC/WACC2.73
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.48 indicates that REN may have some problems paying its short term obligations.
REN has a worse Current ratio (0.48) than 92.31% of its industry peers.
A Quick Ratio of 0.42 indicates that REN may have some problems paying its short term obligations.
With a Quick ratio value of 0.42, REN is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| 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 5.49%.
The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
Looking at the last year, REN shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
The Revenue has been growing slightly by 4.10% on average over the past years.
EPS 1Y (TTM)5.49%
EPS 3Y12.48%
EPS 5Y6.12%
EPS Q2Q%5.87%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y8.82%
Revenue growth 5Y4.1%
Sales Q2Q%3.16%
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 9.61% yearly.
REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y8.88%
EPS Next 2Y8.83%
EPS Next 3Y9.24%
EPS Next 5Y9.61%
Revenue Next Year3.83%
Revenue Next 2Y4.66%
Revenue Next 3Y5.38%
Revenue Next 5Y6.42%
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
With a Price/Earnings ratio of 32.26, REN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as REN.
REN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.10.
With a Price/Forward Earnings ratio of 27.95, REN can be considered very expensive at the moment.
REN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.41. REN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.26 | ||
| Fwd PE | 27.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REN is valued a bit more expensive than the industry average as 65.38% 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 69.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.08 | ||
| EV/EBITDA | 21.65 |
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.
The excellent profitability rating of REN may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)5.27
EPS Next 2Y8.83%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
REN has a Yearly Dividend Yield of 1.58%.
REN's Dividend Yield is comparable with the industry average which is at 2.76.
Compared to the average S&P500 Dividend Yield of 2.33, REN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
On average, the dividend of REN grows each year by 6.84%, which is quite nice.
Dividend Growth(5Y)6.84%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
58.30% 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.
DP58.3%
EPS Next 2Y8.83%
EPS Next 3Y9.24%
RELX PLC
AMS:REN (1/14/2025, 11:13:04 AM)
44.84
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.76%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap83.21B
Analysts80.87
Price Target49.44 (10.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Dividend Growth(5Y)6.84%
DP58.3%
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)-0.33%
PT rev (3m)2.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.26 | ||
| Fwd PE | 27.95 | ||
| P/S | 7.53 | ||
| P/FCF | 34.08 | ||
| P/OCF | 27.59 | ||
| P/B | 21.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.65 |
EPS(TTM)1.39
EY3.1%
EPS(NY)1.6
Fwd EY3.58%
FCF(TTM)1.32
FCFY2.93%
OCF(TTM)1.62
OCFY3.62%
SpS5.96
BVpS2.06
TBVpS-5.17
PEG (NY)3.63
PEG (5Y)5.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 58.9% | ||
| ROCE | 30.21% | ||
| ROIC | 23.43% | ||
| ROICexc | 23.8% | ||
| ROICexgc | N/A | ||
| OM | 29.67% | ||
| PM (TTM) | 20.34% | ||
| GM | 65.31% | ||
| FCFM | 22.09% |
ROA(3y)10.96%
ROA(5y)10.49%
ROE(3y)46.75%
ROE(5y)53.61%
ROIC(3y)17.33%
ROIC(5y)16.81%
ROICexc(3y)17.68%
ROICexc(5y)17.1%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)22.7%
ROCE(5y)22.47%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y16.42%
ROICexc growth 5Y5.86%
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%
F-Score9
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 3.39 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 61.14% | ||
| Cap/Sales | 5.19% | ||
| Interest Coverage | 9.17 | ||
| Cash Conversion | 71.49% | ||
| Profit Quality | 108.62% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 4.86 |
F-Score9
WACC8.58%
ROIC/WACC2.73
Cap/Depr(3y)54.08%
Cap/Depr(5y)52.16%
Cap/Sales(3y)4.99%
Cap/Sales(5y)4.97%
Profit Quality(3y)115.19%
Profit Quality(5y)111.99%
High Growth Momentum
Growth
EPS 1Y (TTM)5.49%
EPS 3Y12.48%
EPS 5Y6.12%
EPS Q2Q%5.87%
EPS Next Y8.88%
EPS Next 2Y8.83%
EPS Next 3Y9.24%
EPS Next 5Y9.61%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y8.82%
Revenue growth 5Y4.1%
Sales Q2Q%3.16%
Revenue Next Year3.83%
Revenue Next 2Y4.66%
Revenue Next 3Y5.38%
Revenue Next 5Y6.42%
EBIT growth 1Y10.09%
EBIT growth 3Y14.46%
EBIT growth 5Y6.41%
EBIT Next Year24.45%
EBIT Next 3Y12.25%
EBIT Next 5Y9.78%
FCF growth 1Y21.81%
FCF growth 3Y17.07%
FCF growth 5Y4.06%
OCF growth 1Y22.85%
OCF growth 3Y15.47%
OCF growth 5Y4.36%