Market Cap
UK£39.0b
Last Updated
2020/01/27 21:42 UTC
Data Sources
Company Financials +
Executive Summary
RELX PLC provides information based-analytics and decision tools for professional and business customers in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with limited growth.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.3%
REL
0.7%
GB Professional Services
-3.0%
GB Market
1 Year Return
25.1%
REL
27.4%
GB Professional Services
11.0%
GB Market
Return vs Industry: REL underperformed the UK Professional Services industry which returned 28.7% over the past year.
Return vs Market: REL exceeded the UK Market which returned 12.7% over the past year.
Shareholder returns
| REL | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 0.7% | -3.0% |
| 30 Day | 4.9% | 2.4% | -2.4% |
| 90 Day | 9.7% | 10.3% | 3.9% |
| 1 Year | 28.2%25.1% | 30.4%27.4% | 16.8%11.0% |
| 3 Year | 52.9%42.2% | 59.2%48.4% | 20.0%4.7% |
| 5 Year | 97.4%74.6% | 111.2%86.4% | 38.9%6.8% |
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
5 days ago | Simply Wall St
Is RELX PLC (LON:REL) Excessively Paying Its CEO?2 weeks ago | Simply Wall St
Calculating The Fair Value Of RELX PLC (LON:REL)1 month ago | Simply Wall St
The RELX (LON:REL) Share Price Has Gained 71% And Shareholders Are Hoping For MoreValuation
Is RELX undervalued compared to its fair value and its price relative to the market?
25.98x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: REL (£19.75) is trading above our estimate of fair value (£18.56)
Significantly Below Fair Value: REL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: REL is poor value based on its PE Ratio (25.4x) compared to the Professional Services industry average (24.2x).
PE vs Market: REL is poor value based on its PE Ratio (25.4x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: REL is poor value based on its PEG Ratio (4.7x)
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).
Next Steps
Future Growth
How is RELX forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
5.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REL's forecast earnings growth (5.4% per year) is above the savings rate (0.5%).
Earnings vs Market: REL's earnings (5.4% per year) are forecast to grow slower than the UK market (11.7% per year).
High Growth Earnings: REL's earnings are forecast to grow, but not significantly.
Revenue vs Market: REL's revenue (3.6% per year) is forecast to grow slower than the UK market (3.6% per year).
High Growth Revenue: REL's revenue (3.6% 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 (61%).
Next Steps
Past Performance
How has RELX performed over the past 5 years?
11.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REL has high quality earnings.
Growing Profit Margin: REL's current net profit margins (19.7%) are lower than last year (22.6%).
Past Earnings Growth Analysis
Earnings Trend: REL's earnings have grown by 11.7% 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 (-7.4%) over the past year, making it difficult to compare to the Professional Services industry average (16%).
Return on Equity
High ROE: Whilst REL's Return on Equity (68.41%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is RELX's financial position?
Financial Position Analysis
Short Term Liabilities: REL's short term assets (£2.1B) do not cover its short term liabilities (£4.7B).
Long Term Liabilities: REL's short term assets (£2.1B) do not cover its long term liabilities (£7.1B).
Debt to Equity History and Analysis
Debt Level: REL's debt to equity ratio (291.8%) is considered high.
Reducing Debt: REL's debt to equity ratio has increased from 178.5% to 291.8% over the past 5 years.
Debt Coverage: REL's debt is well covered by operating cash flow (31.7%).
Interest Coverage: REL's interest payments on its debt are well covered by EBIT (10.4x coverage).
Balance Sheet
Inventory Level: REL has a low level of unsold assets or inventory.
Debt Coverage by Assets: REL's debt is not covered by short term assets (assets are 0.3x debt).
Next Steps
Dividend
What is RELX's current dividend yield, its reliability and sustainability?
2.08%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: REL's dividend (2.13%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: REL's dividend (2.13%) is low compared to the top 25% of dividend payers in the UK market (4.95%).
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 (55.7%), 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 well covered by earnings (47.9% payout ratio).
Next Steps
Management
What is the CEO of RELX's salary, the management and board of directors tenure and is there insider trading?
4.3yrs
Average management tenure
CEO
Erik Engstrom (56yo)
10.2yrs
Tenure
UK£8,414,000
Compensation
Mr. Erik Engstrom is Non-Executive Director of Smith & Nephew plc since January 1, 2015. He was a Partner at General Atlantic Partners. Before that he was President and Chief Operating Officer of Random Ho ...
CEO Compensation Analysis
Compensation vs Market: Erik's total compensation ($USD10.94M) is above average for companies of similar size in the UK market ($USD4.48M).
Compensation vs Earnings: Erik's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.3yrs
Average Tenure
54yo
Average Age
Experienced Management: REL's management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
5.1yrs
Average Tenure
61yo
Average Age
Experienced Board: REL's board of directors are considered experienced (5.1 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Legal Officer Chief Legal Officer & Company Secretary |
| Shares | 25,000 |
| Max Price | UK£17.59 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 21,393 |
| Max Price | UK£17.73 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Erik Engstrom (56yo)
CEO & Executive Director
- Tenure: 10.2yrs
- Compensation: UK£8.41m
Hank Udow (61yo)
Chief Legal Officer & Company Secretary
- Tenure: 8.8yrs
Nick Luff (52yo)
CFO & Executive Director
- Tenure: 5.8yrs
- Compensation: UK£4.40m
Mike Walsh
Chief Executive Officer of Legal
- Tenure: 9yrs
Kumsal Besson (45yo)
Chief Executive Officer of Scientific
- Tenure: 1yrs
Colin Tennant
Head of Investor Relations
J. Heynecke
Senior Vice President of Product Management Pure
- Tenure: 3.2yrs
Tracey Aiken
Vice President of Operations
Jelena Sevo
Chief Strategy Officer
- Tenure: 1yrs
Gunjan Aggarwal
Chief Human Resources Officer
- Tenure: 3yrs
Board Members
Andy Sukawaty (64yo)
Non-Executive Director
- Tenure: 0.8yrs
Linda Sanford (66yo)
Non-Executive Director
- Tenure: 7.1yrs
- Compensation: UK£126.62k
Adrian Hennah (62yo)
Independent Non-Executive Director
- Tenure: 8.8yrs
- Compensation: UK£119.77k
Anthony Habgood (73yo)
Non-Executive Chairman
- Tenure: 10.6yrs
- Compensation: UK£652.36k
Erik Engstrom (56yo)
CEO & Executive Director
- Tenure: 10.2yrs
- Compensation: UK£8.41m
Marike Van Lier Lels (60yo)
Independent Non-Executive Director
- Tenure: 4.5yrs
- Compensation: UK£127.60k
Wolfhart Hauser (70yo)
Senior Independent Director
- Tenure: 3.8yrs
- Compensation: UK£160.28k
Robert MacLeod (55yo)
Non-Executive Director
- Tenure: 3.8yrs
- Compensation: UK£107.78k
Nick Luff (52yo)
CFO & Executive Director
- Tenure: 5.8yrs
- Compensation: UK£4.40m
Suzanne Wood (58yo)
Independent Non-Executive Director
- Tenure: 2.3yrs
- Compensation: UK£116.00k
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£38.955b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RELX | NYSE (New York Stock Exchange) | SPON ADS EACH REPR 0.25 ORD SHS GBP0.144 | US | USD | Jan 1991 | |
| RDED | DB (Deutsche Boerse AG) | SPON ADS EACH REPR 0.25 ORD SHS GBP0.144 | DE | EUR | Jan 1991 | |
| RLXX.F | OTCPK (Pink Sheets LLC) | Yes | PLC Ordinary Shares | US | USD | Jan 1992 |
| REL | LSE (London Stock Exchange) | Yes | PLC Ordinary Shares | GB | GBP | Jan 1992 |
| RDEB | DB (Deutsche Boerse AG) | Yes | PLC Ordinary Shares | DE | EUR | Jan 1992 |
| RELL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | PLC Ordinary Shares | GB | GBP | Jan 1992 |
| REN | ENXTAM (Euronext Amsterdam) | Yes | PLC Ordinary Shares | NL | EUR | Jan 1992 |
| REL N | BMV (Bolsa Mexicana de Valores) | Yes | PLC Ordinary Shares | MX | MXN | Jan 1992 |
Biography
RELX PLC provides information based-analytics and decision tools for professional and business customers in the United States and internationally. It operates through four segments: Scientific, Technical & Medical; Risk & Business Analytics; and Exhibitions. The Scientific, Technical & Medical segment provides information and analytics to institutions and professionals that enables progress in science, advance healthcare, and performance improvement. The Risk & Business Analytics segment offers information-based analytics and decision tools that combines public and industry specific content with technology and algorithms to assist in evaluating and predicting risk. The Exhibitions segment is involved in the events business. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. RELX PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/27 21:42 |
| End of Day Share Price | 2020/01/27 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.