RELX PLC (REN.AS) Stock Fundamental Analysis
Europe - AMS:REN - GB00B2B0DG97 - Common Stock
38.68 EUR
+0.04 (+0.1%)
We assign a fundamental rating of 6 out of 10 to REN. REN was compared to 33 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.
In the past year REN had a positive cash flow from operations.
REN had positive earnings in each of the past 5 years.
Each year in the past 5 years REN had a positive operating cash flow.
1.2 Ratios
REN has a better Return On Assets (13.44%) than 96.97% of its industry peers.
REN's Return On Equity of 88.30% is amongst the best of the industry. REN outperforms 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.89%, REN belongs to the top of the industry, outperforming 96.97% 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 11.62%.
The last Return On Invested Capital (25.89%) for REN is above the 3 year average (19.62%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 20.19%, REN belongs to the best of the industry, outperforming 100.00% 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 (30.17%) is better 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 (65.48%) 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 | 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
REN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, REN has less shares outstanding
The number of shares outstanding for REN has been reduced compared to 5 years ago.
REN has a better debt/assets ratio than last year.
2.2 Solvency
REN has an Altman-Z score of 4.28. This indicates that REN is financially healthy and has little risk of bankruptcy at the moment.
REN has a Altman-Z score of 4.28. This is amongst the best in the industry. REN outperforms 90.91% 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.
The Debt to FCF ratio of REN (3.34) is better than 72.73% 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 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.28 |
ROIC/WACC2.96
WACC8.75%
2.3 Liquidity
A Current Ratio of 0.47 indicates that REN may have some problems paying its short term obligations.
REN has a worse Current ratio (0.47) than 87.88% 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 87.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.27% over the past year.
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.
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)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
REN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.65% yearly.
REN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.25% yearly.
EPS Next Y6.82%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
EPS Next 5Y8.65%
Revenue Next Year2.04%
Revenue Next 2Y4.25%
Revenue Next 3Y4.95%
Revenue Next 5Y6.25%
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
A Price/Earnings ratio of 32.50 indicates a quite expensive valuation of REN.
REN's Price/Earnings ratio is in line with the industry average.
REN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
REN is valuated rather expensively with a Price/Forward Earnings ratio of 23.08.
REN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. REN is more expensive than 60.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of REN to the average of the S&P500 Index (22.85), we can say REN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.5 | ||
| Fwd PE | 23.08 |
4.2 Price Multiples
REN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. REN is more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REN is valued a bit more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.09 | ||
| EV/EBITDA | 18.74 |
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)4.77
PEG (5Y)5.48
EPS Next 2Y8.41%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
REN has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.38, REN has a dividend in line with its industry peers.
REN's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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.
The dividend of REN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.42%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
AMS:REN (10/17/2025, 5:29:40 PM)
38.68
+0.04 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners59.82%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap70.47B
Analysts81.74
Price Target51.95 (34.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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)-1.84%
PT rev (3m)-2.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.02%
EPS NY rev (3m)-3.16%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.5 | ||
| Fwd PE | 23.08 | ||
| P/S | 6.41 | ||
| P/FCF | 27.09 | ||
| P/OCF | 22.13 | ||
| P/B | 28.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.74 |
EPS(TTM)1.19
EY3.08%
EPS(NY)1.68
Fwd EY4.33%
FCF(TTM)1.43
FCFY3.69%
OCF(TTM)1.75
OCFY4.52%
SpS6.03
BVpS1.38
TBVpS-5.47
PEG (NY)4.77
PEG (5Y)5.48
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 | 4.28 |
F-Score7
WACC8.75%
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 Y6.82%
EPS Next 2Y8.41%
EPS Next 3Y8.71%
EPS Next 5Y8.65%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y9.2%
Revenue growth 5Y3.68%
Sales Q2Q%2.15%
Revenue Next Year2.04%
Revenue Next 2Y4.25%
Revenue Next 3Y4.95%
Revenue Next 5Y6.25%
EBIT growth 1Y4.2%
EBIT growth 3Y14.69%
EBIT growth 5Y6.47%
EBIT Next Year23.62%
EBIT Next 3Y12.21%
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%