Relx (RELX) AI Stock Analysis

• Market Cap: $95.92B
• Dividend Yield: 2.14%
• Average Volume (3M): 857.76K
• Price to Earnings (P/E): 39.4
• Beta (1Y): 0.56
• Revenue Growth: 5.86%
• EPS Growth: 13.13%
• Country: US
• Employees: 34,580
• Sector: Industrials
• Sector Strength: 84
• Industry: Publishing
• EPS (TTM): 0.78
• Shares Outstanding: 1,838,137,100
• 10 Day Avg. Volume: 752,864
• 30 Day Avg. Volume: 857,760
• PEG Ratio: 2.27
• Price to Book (P/B): 11.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• 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 Business Overview & Revenue Model

Company Description

RELX 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 Money

RELX 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 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

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

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

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 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

• Technical Analysis Sentiment: Neutral
• Last Price: 52.11
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RELX	77 Outperform	$95.92B	39.35	56.34%	2.14%	5.86%	13.13%
WM	77 Outperform	$93.33B	34.98	34.01%	1.42%	10.77%	8.38%
NYT	76 Outperform	$8.88B	29.72	16.68%	1.32%	6.85%	21.26%
PSO	72 Outperform	$9.41B	17.73	10.99%	2.86%	-0.59%	24.06%
Sector *	68 Neutral	£2.89B	10.32	8.40%	3.42%	3.06%	-9.96%
SCHL	67 Neutral	$509.71M	32.05	1.92%	4.18%	-3.10%	-58.47%
WLY	46 Neutral	$2.35B	28.35	11.28%	3.25%	-11.77%	―