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REL

RELXLSE:REL Stock Report

Last Price

UK£22.64

Market Cap

UK£43.7b

7D

3.1%

1Y

21.1%

Updated

21 Jan, 2022

Data

Company Financials +
REL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health2/6
Dividends5/6

REL Stock Overview

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

RELX Competitors

Experian

LSE:EXPN

UK£28.0b

Moody's

NYSE:MCO

US$63.6b

Thomson Reuters

TSX:TRI

CA$64.9b

Schlumberger

NYSE:SLB

US$51.0b

Price History & Performance

Summary of all time highs, changes and price drops for RELX
Historical stock prices
Current Share PriceUK£22.64
52 Week HighUK£24.51
52 Week LowUK£16.83
Beta0.48
1 Month Change-4.55%
3 Month Change0.80%
1 Year Change21.10%
3 Year Change39.75%
5 Year Change60.34%
Change since IPO632.66%

Recent News & Updates

Jan 02
RELX (LON:REL) Hasn't Managed To Accelerate Its Returns

RELX (LON:REL) Hasn't Managed To Accelerate Its Returns

There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want...

Dec 05
Estimating The Intrinsic Value Of RELX PLC (LON:REL)

Estimating The Intrinsic Value Of RELX PLC (LON:REL)

In this article we are going to estimate the intrinsic value of RELX PLC ( LON:REL ) by taking the expected future cash...

Sep 28
RELX's (LON:REL) Returns Have Hit A Wall

RELX's (LON:REL) Returns Have Hit A Wall

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Sep 01
A Look At The Intrinsic Value Of RELX PLC (LON:REL)

A Look At The Intrinsic Value Of RELX PLC (LON:REL)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of RELX PLC ( LON:REL...

Aug 18
RELX (LON:REL) Has A Pretty Healthy Balance Sheet

RELX (LON:REL) Has A Pretty Healthy Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

RELGB Professional ServicesGB Market
7D3.1%1.0%-0.5%
1Y21.1%18.8%8.7%

Return vs Industry: REL exceeded the UK Professional Services industry which returned 18.8% over the past year.

Return vs Market: REL exceeded the UK Market which returned 8.7% over the past year.

Price Volatility

Is REL's price volatile compared to industry and market?
REL volatility
REL Average Weekly Movement2.5%
Professional Services Industry Average Movement4.3%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

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

Volatility Over Time: REL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190333,000Erik Engstromhttps://www.relx.com

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, Technical & Medical; Risk; Legal; and Exhibitions. The Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals to progress in science and advance healthcare.

RELX Fundamentals Summary

How do RELX's earnings and revenue compare to its market cap?
REL fundamental statistics
Market CapUK£43.67b
Earnings (TTM)UK£1.34b
Revenue (TTM)UK£7.00b

32.6x

P/E Ratio

6.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REL income statement (TTM)
RevenueUK£7.00b
Cost of RevenueUK£2.41b
Gross ProfitUK£4.60b
ExpensesUK£3.26b
EarningsUK£1.34b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 10, 2022

Earnings per share (EPS)0.69
Gross Margin65.66%
Net Profit Margin19.13%
Debt/Equity Ratio258.6%

How did REL perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

69%

Payout Ratio

Valuation

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

18.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REL (£22.64) is trading below our estimate of fair value (£27.84)

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 (32.6x) compared to the UK Professional Services industry average (33.9x).

PE vs Market: REL is poor value based on its PE Ratio (32.6x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: REL is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: REL is overvalued based on its PB Ratio (18x) compared to the GB Professional Services industry average (3.1x).


Future Growth

How is RELX forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REL's forecast earnings growth (8.5% per year) is above the savings rate (0.9%).

Earnings vs Market: REL's earnings (8.5% per year) are forecast to grow slower than the UK market (12.1% per year).

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

Revenue vs Market: REL's revenue (6.9% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: REL's revenue (6.9% 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 (51%).


Past Performance

How has RELX performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REL has high quality earnings.

Growing Profit Margin: REL's current net profit margins (19.1%) are higher than last year (17%).


Past Earnings Growth Analysis

Earnings Trend: REL's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: REL's earnings growth over the past year (5.2%) exceeds its 5-year average (1.1% per year).

Earnings vs Industry: REL earnings growth over the past year (5.2%) underperformed the Professional Services industry 5.2%.


Return on Equity

High ROE: Whilst REL's Return on Equity (54.99%) 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 (£2.0B) do not cover its short term liabilities (£3.7B).

Long Term Liabilities: REL's short term assets (£2.0B) do not cover its long term liabilities (£7.2B).


Debt to Equity History and Analysis

Debt Level: REL's net debt to equity ratio (255.9%) is considered high.

Reducing Debt: REL's debt to equity ratio has increased from 238.7% to 258.6% over the past 5 years.

Debt Coverage: REL's debt is well covered by operating cash flow (30%).

Interest Coverage: REL's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet


Dividend

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

2.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REL's dividend (2.11%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: REL's dividend (2.11%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


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 (68.6%), 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 (54.2% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Commercial Services industry.

Management

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

7.3yrs

Average management tenure


CEO

Erik Engstrom (58 yo)

12.17yrs

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 ($USD5.36M) is above average for companies of similar size in the UK market ($USD3.96M).

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 (7.3 years average tenure).


Board Members

Experienced Board: REL's board of directors are considered experienced (5.8 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 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
  • Implied Market Cap: UK£43.666b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:15
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
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.