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Market Cap

UK£36.6b

Last Updated

2021/05/07 01:03 UTC

Data Sources

Company Financials +

Executive Summary

RELX PLC provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. More Details


Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has RELX's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REL is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: REL's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

REL

0.2%

GB Professional Services

1.2%

GB Market


1 Year Return

2.2%

REL

10.5%

GB Professional Services

25.5%

GB Market

Return vs Industry: REL underperformed the UK Professional Services industry which returned 14.1% over the past year.

Return vs Market: REL underperformed the UK Market which returned 26.4% over the past year.


Shareholder returns

RELIndustryMarket
7 Day1.0%0.2%1.2%
30 Day1.0%5.0%3.3%
90 Day4.1%6.8%8.6%
1 Year4.8%2.2%12.6%10.5%31.0%25.5%
3 Year28.6%19.3%36.4%27.7%11.9%-1.0%
5 Year74.2%53.9%92.2%71.7%50.5%22.0%

Long-Term Price Volatility Vs. Market

How volatile is RELX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RELX undervalued compared to its fair value and its price relative to the market?

15.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REL (£18.99) is trading below our estimate of fair value (£22.55)

Significantly Below Fair Value: REL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: REL is good value based on its PE Ratio (29.9x) compared to the GB Professional Services industry average (36.9x).

PE vs Market: REL is poor value based on its PE Ratio (29.9x) compared to the UK market (25.8x).


Price to Earnings Growth Ratio

PEG Ratio: REL is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: REL is overvalued based on its PB Ratio (17.4x) compared to the GB Professional Services industry average (3x).


Future Growth

How is RELX forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REL's forecast earnings growth (9.1% per year) is above the savings rate (0.9%).

Earnings vs Market: REL's earnings (9.1% per year) are forecast to grow slower than the UK market (17.8% per year).

High Growth Earnings: REL's earnings are forecast to grow, but not significantly.

Revenue vs Market: REL's revenue (5.4% per year) is forecast to grow slower than the UK market (5.4% per year).

High Growth Revenue: REL's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REL's Return on Equity is forecast to be very high in 3 years time (57.2%).


Past Performance

How has RELX performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REL has high quality earnings.

Growing Profit Margin: REL's current net profit margins (17.2%) are lower than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: REL's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: REL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: REL had negative earnings growth (-18.6%) over the past year, making it difficult to compare to the Professional Services industry average (-10.4%).


Return on Equity

High ROE: Whilst REL's Return on Equity (57.5%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is RELX's financial position?


Financial Position Analysis

Short Term Liabilities: REL's short term assets (£2.3B) do not cover its short term liabilities (£4.4B).

Long Term Liabilities: REL's short term assets (£2.3B) do not cover its long term liabilities (£7.7B).


Debt to Equity History and Analysis

Debt Level: REL's debt to equity ratio (326.1%) is considered high.

Reducing Debt: REL's debt to equity ratio has increased from 181.3% to 326.1% over the past 5 years.

Debt Coverage: REL's debt is well covered by operating cash flow (23.3%).

Interest Coverage: REL's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Dividend

What is RELX current dividend yield, its reliability and sustainability?

2.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REL's dividend (2.47%) is higher than the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: REL's dividend (2.47%) is low compared to the top 25% of dividend payers in the UK market (4.06%).


Stability and Growth of Payments

Stable Dividend: REL's dividends per share have been stable in the past 10 years.

Growing Dividend: REL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74%), REL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: REL's dividends in 3 years are forecast to be covered by earnings (53.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.0yrs

Average management tenure


CEO

Erik Engstrom (57 yo)

11.5yrs

Tenure

UK£3,950,000

Compensation

Mr. Erik Engstrom is Independent Non-Executive Director of Smith & Nephew plc since January 1, 2015 and Bonnier Group. He was a Partner at General Atlantic Partners. He has been Chief Executive Officer of ...


CEO Compensation Analysis

Compensation vs Market: Erik's total compensation ($USD5.48M) is above average for companies of similar size in the UK market ($USD3.60M).

Compensation vs Earnings: Erik's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: REL's management team is seasoned and experienced (8 years average tenure).


Board Members

Experienced Board: REL's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RELX PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RELX PLC
  • Ticker: REL
  • Exchange: LSE
  • Founded: 1903
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£36.593b
  • Shares outstanding: 1.93b
  • Website: https://www.relx.com

Number of Employees


Location

  • RELX PLC
  • 1-3 Strand
  • London
  • Greater London
  • WC2N 5JR
  • United Kingdom

Listings


Biography

RELX PLC provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Scientific, Techni...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 01:03
End of Day Share Price2021/05/06 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.