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REL

RELX LSE:REL Stock Report

Last Price

UK£22.10

Market Cap

UK£42.4b

7D

0.2%

1Y

11.6%

Updated

03 Jul, 2022

Data

Company Financials +
REL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance3/6
Financial Health3/6
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

Price History & Performance

Summary of all time highs, changes and price drops for RELX
Historical stock prices
Current Share PriceUK£22.10
52 Week HighUK£24.74
52 Week LowUK£19.66
Beta0.46
1 Month Change0.14%
3 Month Change-8.22%
1 Year Change11.62%
3 Year Change13.63%
5 Year Change35.42%
Change since IPO615.19%

Recent News & Updates

Jun 05
We Think RELX (LON:REL) Can Stay On Top Of Its Debt

We Think RELX (LON:REL) Can Stay On Top Of Its Debt

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

May 22
RELX PLC (LON:REL) Shares Could Be 23% Below Their Intrinsic Value Estimate

RELX PLC (LON:REL) Shares Could Be 23% Below Their Intrinsic Value Estimate

Does the May share price for RELX PLC ( LON:REL ) reflect what it's really worth? Today, we will estimate the stock's...

Apr 22
RELX's (LON:REL) Dividend Will Be Increased To UK£0.35

RELX's (LON:REL) Dividend Will Be Increased To UK£0.35

The board of RELX PLC ( LON:REL ) has announced that it will be increasing its dividend on the 7th of June to UK£0.35...

Shareholder Returns

RELGB Professional ServicesGB Market
7D0.2%0.1%-1.1%
1Y11.6%-6.3%-9.7%

Return vs Industry: REL exceeded the UK Professional Services industry which returned -6.3% over the past year.

Return vs Market: REL exceeded the UK Market which returned -9.7% over the past year.

Price Volatility

Is REL's price volatile compared to industry and market?
REL volatility
REL Average Weekly Movement2.8%
Professional Services Industry Average Movement4.3%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

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
190333,500Erik 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: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk.

RELX Fundamentals Summary

How do RELX's earnings and revenue compare to its market cap?
REL fundamental statistics
Market CapUK£42.37b
Earnings (TTM)UK£1.47b
Revenue (TTM)UK£7.24b

28.8x

P/E Ratio

5.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REL income statement (TTM)
RevenueUK£7.24b
Cost of RevenueUK£2.56b
Gross ProfitUK£4.68b
Other ExpensesUK£3.21b
EarningsUK£1.47b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)0.77
Gross Margin64.63%
Net Profit Margin20.31%
Debt/Equity Ratio185.0%

How did REL perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

65%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is REL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for REL?

Other financial metrics that can be useful for relative valuation.

REL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.7x
Enterprise Value/EBITDA21.9x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does REL's PE Ratio compare to its peers?

REL PE Ratio vs Peers
The above table shows the PE ratio for REL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.7x
EXPN Experian
23.2x9.1%UK£22.2b
ITRK Intertek Group
23.8x8.4%UK£6.9b
DATA GlobalData
46.9xn/aUK£1.2b
RWS RWS Holdings
24.9x12.3%UK£1.3b
REL RELX
28.8x9.5%UK£42.4b

Price-To-Earnings vs Peers: REL is good value based on its Price-To-Earnings Ratio (28.8x) compared to the peer average (29.7x).


Price to Earnings Ratio vs Industry

How does REL's PE Ratio compare vs other companies in the GB Professional Services Industry?

Price-To-Earnings vs Industry: REL is expensive based on its Price-To-Earnings Ratio (28.8x) compared to the UK Professional Services industry average (22.8x)


Price to Earnings Ratio vs Fair Ratio

What is REL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.8x
Fair PE Ratio48.1x

Price-To-Earnings vs Fair Ratio: REL is good value based on its Price-To-Earnings Ratio (28.8x) compared to the estimated Fair Price-To-Earnings Ratio (48.1x).


Share Price vs Fair Value

What is the Fair Price of REL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: REL (£22.1) is trading below our estimate of fair value (£32.16)

Significantly Below Fair Value: REL is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: REL is poor value based on its PEG Ratio (3x)


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Future Growth

How is RELX forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REL's forecast earnings growth (9.5% per year) is above the savings rate (0.9%).

Earnings vs Market: REL's earnings (9.5% per year) are forecast to grow slower than the UK market (10.9% per year).

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

Revenue vs Market: REL's revenue (7.9% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: REL's revenue (7.9% 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 (53.5%).


Discover growth companies

Past Performance

How has RELX performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: REL has high quality earnings.

Growing Profit Margin: REL's current net profit margins (20.3%) are higher than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: REL's earnings have declined by 0.8% per year over the past 5 years.

Accelerating Growth: REL's earnings growth over the past year (20.2%) exceeds its 5-year average (-0.8% per year).

Earnings vs Industry: REL earnings growth over the past year (20.2%) underperformed the Professional Services industry 46.1%.


Return on Equity

High ROE: Whilst REL's Return on Equity (45.63%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is RELX's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: REL's short term assets (£2.4B) do not cover its short term liabilities (£3.7B).

Long Term Liabilities: REL's short term assets (£2.4B) do not cover its long term liabilities (£6.9B).


Debt to Equity History and Analysis

Debt Level: REL's net debt to equity ratio (181.5%) is considered high.

Reducing Debt: REL's debt to equity ratio has reduced from 223.4% to 185% over the past 5 years.

Debt Coverage: REL's debt is well covered by operating cash flow (33.8%).

Interest Coverage: REL's interest payments on its debt are well covered by EBIT (15x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.25%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: REL's dividend (2.25%) is higher than the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: REL's dividend (2.25%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (65.3%), REL's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (56.9%), REL's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

7.8yrs

Average management tenure


CEO

Erik Engstrom (59 yo)

12.67yrs

Tenure

UK£9,632,000

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 ($USD11.59M) is above average for companies of similar size in the UK market ($USD5.27M).

Compensation vs Earnings: Erik's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: REL's management team is seasoned and experienced (7.8 years average tenure).


Board Members

Experienced Board: REL's board of directors are considered experienced (5.5 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£42.371b
  • Shares outstanding: 1.92b
  • 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 Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.