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Relx PLC (RELX)
NYSE:RELX
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Relx
(NYSE:RELX)
79Outperform
Relx (RELX) vs. S&P 500 (SPY)
Market Cap
$100.17B
Dividend Yield1.42%
Average Volume (3M)857.48K
Price to Earnings (P/E)41.2
Beta (1Y)0.62
Revenue Growth5.86%
EPS Growth13.13%
CountryUS
Employees34,580
SectorIndustrials
Sector Strength91
IndustryPublishing
Share Statistics
EPS (TTM)0.78
Shares Outstanding1,843,474,600
10 Day Avg. Volume699,275
30 Day Avg. Volume857,478
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)20.81
Price to Sales (P/S)0.00
P/FCF Ratio27.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Relx Business Overview & Revenue Model
Company DescriptionRELX 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. The Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals to progress in science and advance healthcare. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the events business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyRELX makes money through a diversified revenue model primarily driven by subscription-based services, transactional sales, and advertising. The Scientific, Technical & Medical segment generates revenue through subscriptions to journals, databases, and electronic information solutions used by researchers and healthcare professionals. The Risk & Business Analytics segment provides data and analytics tools to businesses and governments, earning revenue through a combination of subscription and transaction-based pricing models. The Legal segment offers legal research and workflow solutions to law firms and legal professionals, predominantly through subscriptions. Lastly, the Exhibitions segment organizes trade shows and conventions, generating income from exhibitors and attendees. Significant partnerships with academic institutions, businesses, and governmental organizations contribute to RELX's revenue streams by expanding its customer base and enhancing its product offerings.
Relx Financial Statement Overview
Summary
Relx exhibits strong financial health with consistent revenue and profit growth, efficient cost management, and solid cash flow generation. While the balance sheet shows a reliance on debt, the company's strong profitability and cash flow position mitigate associated risks. Overall, Relx is well-positioned within the Corporate Services industry, demonstrating both stability and growth potential.Income Statement
Relx demonstrated strong revenue growth of 2.98% over the past year, alongside robust profitability metrics with a gross profit margin of 65% and a net profit margin of 20.5% in 2024. The EBIT margin was 30.3%, indicating effective cost management and operational efficiency. These solid margins reflect a strong market position and pricing power within the industry.88
Very Positive
Balance Sheet
The company maintains a stable balance sheet with a manageable debt-to-equity ratio of 1.88 and a return on equity (ROE) of 55.5%, reflecting strong profitability relative to shareholder investment. However, the equity ratio stands at 23%, suggesting a higher reliance on debt, which could pose risks if market conditions change.75
Positive
Cash Flow
Relx's cash flow performance is commendable, with a significant free cash flow growth rate of 30.8% over the past year, driven by effective management of capital expenditures. The operating cash flow to net income ratio is 1.35, indicating robust cash generation from operations relative to reported earnings. This financial flexibility supports continued investment and debt service.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 9.43B | 9.16B | 8.55B | 7.24B | 7.11B | Gross Profit |
| 6.13B | 5.95B | 5.51B | 4.68B | 4.62B | EBIT |
| 2.86B | 2.68B | 2.32B | 1.88B | 1.52B | EBITDA |
| 3.11B | 3.31B | 3.06B | 2.62B | 2.46B | Net Income Common Stockholders |
| 1.93B | 1.78B | 1.63B | 1.47B | 1.22B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 119.00M | 155.00M | 334.00M | 113.00M | 88.00M | Total Assets |
| 15.13B | 14.92B | 15.83B | 13.86B | 14.14B | Total Debt |
| 6.54B | 6.50B | 6.73B | 6.17B | 7.12B | Net Debt |
| 6.42B | 6.34B | 6.40B | 6.05B | 7.04B | Total Liabilities |
| 11.63B | 11.48B | 12.07B | 10.63B | 12.04B | Stockholders Equity |
| 3.48B | 3.46B | 3.78B | 3.23B | 2.10B |
| Cash Flow | Free Cash Flow | |||
| 2.59B | 1.98B | 1.97B | 1.68B | 1.23B | Operating Cash Flow |
| 2.61B | 2.46B | 2.40B | 2.02B | 1.60B | Investing Cash Flow |
| -575.00M | -569.00M | -859.00M | -384.00M | -1.17B | Financing Cash Flow |
| -2.06B | -2.06B | -1.33B | -1.61B | -474.00M |
Relx Technical Analysis
Positive
55.03
Price Trends
50.76
Positive
49.35
Positive
47.83
Positive
Market Momentum
0.95
Positive
63.94
Neutral
85.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELX, the sentiment is Positive. The current price of 55.03 is above the 20-day moving average (MA) of 53.49, above the 50-day MA of 50.76, and above the 200-day MA of 47.83, indicating a bullish trend. The MACD of 0.95 indicates Positive momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 85.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RELX.
Relx Risk Analysis
Relx disclosed 17 risk factors in its most recent earnings report. Relx reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Relx Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $9.12B | 30.51 | 16.68% | 1.02% | 6.85% | 21.26% | |
79 Outperform | $100.17B | 41.20 | 56.34% | 1.42% | 5.86% | 13.13% | |
77 Outperform | $92.50B | 34.67 | 34.01% | 1.34% | 10.77% | 8.38% | |
76 Outperform | $10.41B | 19.67 | 10.99% | 1.96% | -0.59% | 24.06% | |
66 Neutral | $478.25M | 30.24 | 1.92% | 4.43% | -3.10% | -58.47% | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% | |
58 Neutral | $2.36B | 59.18 | 5.77% | 3.21% | -11.77% | ― |
* Industrials Sector Average
Performance Comparison
RELX
Relx
55.03
11.59
26.68%
WLY
John Wiley Sons Cl A
43.76
6.39
17.10%
NYT
New York Times
55.26
6.77
13.96%
PSO
Pearson
16.35
4.44
37.28%
SCHL
Scholastic
17.94
-17.54
-49.44%
WM
Waste Management
231.95
26.46
12.88%
Relx Earnings Call Summary
Earnings Call Date:Feb 13, 2025
(Q4-2024)
| % Change Since: 8.09%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, increased dividends, and growth in key segments like Exhibitions and STM. However, challenges such as print declines and currency impacts were noted. The positive aspects, especially financial metrics and strategic progress, outweigh these challenges.Q4-2024 Updates
Positive Updates
Strong Financial Performance in 2024
Delivered strong financial results with underlying revenue growth of 7%, underlying adjusted operating profit growth of 10%, and adjusted earnings per share growth of 9% at constant currency.
Increase in Dividend and Share Buybacks
Proposing a 7% increase in the full year dividend to 63p per share and completed £1 billion of share buybacks, with £1.5 billion announced for 2025.
Exhibitions Segment Growth
Exhibitions delivered underlying revenue growth of 11%, reflecting an improved growth profile and favorable comparisons to the prior year.
STM Article Submission and Publication Growth
Number of articles submitted grew very strongly by over 20%, and the number of articles published grew by 15%.
Reduction in Leverage
Leverage reduced to 1.8x, slightly below the typical range, due to strong cash generation and improving EBITDA.
Negative Updates
Print Decline in STM
STM division faced higher than historical print declines, impacting overall growth rates.
Currency Impact on Revenue and Profit
Total revenue growth at constant currency for the group was 6%, but in sterling, it was 3%, impacted by the relative strength of sterling against the dollar and the euro.
U.S. Government Research Funding Concerns
Concerns about potential impact of U.S. government funding cuts on research, although direct impact on the company is in low single digits.
Company Guidance
In the recent earnings call, Erik Engstrom outlined the company's robust financial performance in 2024, including a 7% growth in underlying revenue and a 10% rise in underlying adjusted operating profit. Adjusted earnings per share increased by 9% at constant currency, and a 7% hike in the full-year dividend was proposed. Key business segments such as Risk experienced 8% revenue growth, while STM and Legal saw respective revenue growths of 4% and 7%. Exhibitions led with an 11% increase in revenue, showcasing improved event portfolios and reduced costs. The company also maintained strong cash conversion at 97% and reduced leverage to 1.8x. Moving forward, continued robust growth in revenue and operating profit is expected, driven by a strategic focus on higher-value analytics and decision tools.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.