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 31 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 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.
REN had a positive operating cash flow in the past year.
In the past 5 years REN has always been profitable.
Each year in the past 5 years REN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of REN (12.78%) is better than 100.00% of its industry peers.
REN's Return On Equity of 55.56% is amongst the best of the industry. REN outperforms 90.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.31%, REN belongs to the top of the industry, outperforming 96.77% 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 11.33%.
The 3 year average ROIC (19.62%) for REN is below the current ROIC(21.31%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 20.50%, 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.
The Operating Margin of REN (29.87%) is better than 100.00% of its industry peers.
REN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 65.02%, REN is in line with its industry, outperforming 58.06% 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 | 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
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.
The debt/assets ratio for REN has been reduced compared to a year ago.
2.2 Solvency
REN has an Altman-Z score of 5.08. This indicates that REN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.08, REN belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
REN has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as REN would need 3.08 years to pay back of all of its debts.
REN's Debt to FCF ratio of 3.08 is amongst the best of the industry. REN outperforms 80.65% of its industry peers.
A Debt/Equity ratio of 1.69 is on the high side and indicates that REN has dependencies on debt financing.
REN has a Debt to Equity ratio of 1.69. This is in the lower half of the industry: REN underperforms 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.44
WACC8.72%
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 80.65% of its industry peers.
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.
With a Quick ratio value of 0.47, REN is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
| 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 10.08%, which is quite good.
REN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.94% yearly.
Looking at the last year, REN shows a small growth in Revenue. The Revenue has grown by 2.98% 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)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 8.11% on average per year.
REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.99% yearly.
EPS Next Y10.3%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
EPS Next 5Y8.11%
Revenue Next Year4.92%
Revenue Next 2Y6.06%
Revenue Next 3Y5.99%
Revenue Next 5Y5.99%
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
REN is valuated quite expensively with a Price/Earnings ratio of 39.46.
REN's Price/Earnings ratio is a bit more expensive when compared to the industry. REN is more expensive than 64.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.17, REN is valued quite expensively.
REN is valuated quite expensively with a Price/Forward Earnings ratio of 29.82.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REN indicates a slightly more expensive valuation: REN is more expensive than 61.29% of the companies listed in the same industry.
REN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.46 | ||
| Fwd PE | 29.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REN is valued a bit more expensive than 67.74% of the companies in the same industry.
64.52% of the companies in the same industry are cheaper than REN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.2 | ||
| EV/EBITDA | 22.56 |
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)3.83
PEG (5Y)6.65
EPS Next 2Y10.68%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
REN has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.98, 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 | 1.54% |
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 57.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
REN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP57.96%
EPS Next 2Y10.68%
EPS Next 3Y10.18%
AMS:REN (5/28/2025, 7:00:00 PM)
48.54
-0.54 (-1.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners55.19%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap89.20B
Analysts80.83
Price Target53.41 (10.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.72
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)-3.34%
PT rev (3m)-1.91%
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)-0.47%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.46 | ||
| Fwd PE | 29.82 | ||
| P/S | 7.92 | ||
| P/FCF | 35.2 | ||
| P/OCF | 28.66 | ||
| P/B | 21.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.56 |
EPS(TTM)1.23
EY2.53%
EPS(NY)1.63
Fwd EY3.35%
FCF(TTM)1.38
FCFY2.84%
OCF(TTM)1.69
OCFY3.49%
SpS6.13
BVpS2.26
TBVpS-5.13
PEG (NY)3.83
PEG (5Y)6.65
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 | 5.08 |
F-Score9
WACC8.72%
ROIC/WACC2.44
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 5Y8.11%
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 5Y5.99%
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%