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Relx PLC (RELX)
NYSE:RELX

Relx (RELX) AI Stock Analysis

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Relx

(NYSE:RELX)

Rating:77Outperform
Price Target:
$62.00
▲(18.98%Upside)
Relx's overall score reflects its strong financial performance, robust earnings call sentiment, and positive technical indicators, despite a high valuation. The company's strategic focus and sustained growth in key areas drive optimism, while the elevated P/E ratio and modest dividend yield are minor concerns.

Relx (RELX) vs. SPDR S&P 500 ETF (SPY)

Relx Business Overview & Revenue Model

Company DescriptionRELX Group is a global provider of information-based analytics and decision tools for professional and business customers across industries. The company operates through four main segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal; and Exhibitions. RELX offers a range of services including online information and analytics solutions, legal research tools, and the organization of trade exhibitions, serving industries such as healthcare, legal, financial services, and more.
How the Company Makes MoneyRELX makes money primarily through subscription-based and transaction-based revenue models. The Scientific, Technical & Medical segment generates revenue through the sale of scientific journals, research databases, and tools for academic and corporate research. The Risk & Business Analytics segment earns revenue by providing data-driven insights and analytics to help businesses manage risk and prevent fraud. The Legal segment offers legal research tools and software on a subscription basis, while the Exhibitions segment generates income from organizing and hosting trade shows and events. RELX's revenue is bolstered by long-term customer relationships and a high renewal rate for its subscription services. Strategic partnerships and acquisitions also play a vital role in expanding their product offerings and customer base.

Relx Earnings Call Summary

Earnings Call Date:Feb 13, 2025
(Q4-2024)
|
% Change Since: 2.36%|
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.

Relx Financial Statement Overview

Summary
Relx shows strong financial health with solid revenue and profit growth, effective cost management, and robust cash flow generation. Despite a reliance on debt, the company's profitability and cash flow mitigate associated risks.
Income Statement
88
Very Positive
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.
Balance Sheet
75
Positive
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.
Cash Flow
82
Very Positive
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
9.43B9.16B8.55B7.24B7.11B
Gross Profit
6.13B5.95B5.51B4.68B4.62B
EBIT
2.86B2.68B2.32B1.88B1.52B
EBITDA
3.11B3.31B3.06B2.62B2.46B
Net Income Common Stockholders
1.93B1.78B1.63B1.47B1.22B
Balance SheetCash, Cash Equivalents and Short-Term Investments
119.00M155.00M334.00M113.00M88.00M
Total Assets
15.13B14.92B15.83B13.86B14.14B
Total Debt
6.54B6.50B6.73B6.17B7.12B
Net Debt
6.42B6.34B6.40B6.05B7.04B
Total Liabilities
11.63B11.48B12.07B10.63B12.04B
Stockholders Equity
3.48B3.46B3.78B3.23B2.10B
Cash FlowFree Cash Flow
2.59B1.98B1.97B1.68B1.23B
Operating Cash Flow
2.61B2.46B2.40B2.02B1.60B
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

Technical Analysis Sentiment
Neutral
Last Price52.11
Price Trends
50DMA
53.08
Negative
100DMA
51.00
Positive
200DMA
48.78
Positive
Market Momentum
MACD
-0.26
Positive
RSI
39.63
Neutral
STOCH
2.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELX, the sentiment is Neutral. The current price of 52.11 is below the 20-day moving average (MA) of 53.73, below the 50-day MA of 53.08, and above the 200-day MA of 48.78, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 2.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$95.92B39.3556.34%2.14%5.86%13.13%
WMWM
77
Outperform
$93.33B34.9834.01%1.42%10.77%8.38%
NYNYT
76
Outperform
$8.88B29.7216.68%1.32%6.85%21.26%
PSPSO
72
Outperform
$9.41B17.7310.99%2.86%-0.59%24.06%
68
Neutral
£2.89B10.328.40%3.42%3.06%-9.96%
67
Neutral
$509.71M32.051.92%4.18%-3.10%-58.47%
WLWLY
46
Neutral
$2.35B28.3511.28%3.25%-11.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RELX
Relx
52.11
6.97
15.44%
WLY
John Wiley Sons Cl A
43.38
3.65
9.19%
NYT
New York Times
54.49
4.24
8.44%
PSO
Pearson
14.61
2.55
21.14%
SCHL
Scholastic
19.12
-14.83
-43.68%
WM
Waste Management
231.94
22.48
10.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.