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Relx
(NYSE:RELX)
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Rating:73Outperform
Price Target:
$41.00
▲(19.15% Upside)
Action:Upgraded
Date:07/23/26
RELX scores well primarily due to strong financial quality (high margins and robust free cash flow) and a very positive earnings call with confident guidance, margin expansion, and strong cash conversion. The score is held back by balance-sheet leverage and a mixed technical picture with the stock still below key longer-term moving averages; valuation is reasonable but not clearly cheap at a ~21.7 P/E.
Positive Factors
Recurring revenue & diversified segments
RELX’s core business is subscription and multi-year contracts across Risk, STM and Legal, creating predictable, high-margin recurring revenue. This durable model supports steady cash flows, lock-in via workflow tools and resilience through diversification across verticals and geographies.
Negative Factors
Elevated leverage and reduced balance-sheet flexibility
Relatively high debt and a smaller equity cushion limit the company’s optionality for large acquisitions or cyclical shocks. Higher leverage reduces headroom for additional buybacks or aggressive investment if revenues slow, increasing risk in adverse macro conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & diversified segments
RELX’s core business is subscription and multi-year contracts across Risk, STM and Legal, creating predictable, high-margin recurring revenue. This durable model supports steady cash flows, lock-in via workflow tools and resilience through diversification across verticals and geographies.
Read all positive factors
Relx Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Analyzes income from different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyRelx (RELX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$61.31B
Dividend Yield2.54%
Average Volume (3M)2.69M
Price to Earnings (P/E)20.7
Beta (1Y)0.42
Revenue Growth5.77%
EPS Growth25.08%
CountryUS
Employees37,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.25
Shares Outstanding1,750,715,700
10 Day Avg. Volume2,738,432
30 Day Avg. Volume2,691,193
Financial Highlights & Ratios
PEG Ratio2.73
Price to Book (P/B)23.30
Price to Sales (P/S)5.74
P/FCF Ratio19.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.9
Revenue Forecast (FY)$13.46B
Relx Business Overview & Revenue Model
Company Description
RELX Plc is a global enterprise that delivers data-driven analytical solutions and strategic decision-making instruments to professional and corporate clients across North America, Europe, and other international markets. Its operations are struct...
How the Company Makes Money
RELX primarily makes money by selling subscriptions and recurring licenses to its information, analytics, and workflow solutions, supplemented by transactional revenue and event-related income. In the Risk segment, revenue is generated from sellin...
Relx Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call presented a clear bias of positive operating and financial momentum: double-digit EPS growth at constant currency, margin expansion, strong cash generation and continued AI-driven product adoption across key divisions (Risk, STM, Legal). Most divisions delivered revenue and profit growth ahead of revenue, and management reiterated guidance for continued strong underlying revenue growth and profit growth exceeding revenue for the full year. The principal negatives are timing and scheduling effects in Exhibitions, currency and print headwinds, modestly higher leverage due to buybacks/dividends, and some regulatory/legal uncertainties — none of which outweighed the breadth and magnitude of the operational progress and financial strength reported.Positive Updates
Strong Group Financial Performance
Underlying revenue +7%; underlying adjusted operating profit +9%; group adjusted operating margin improved 70 basis points to 35.5%. Adjusted earnings per share +11% at constant currency (68.6p) and net profit +7% at constant currency (over GBP 1.2bn).
Negative Updates
Exhibitions Profitability & Event Timing Risks
First half underlying adjusted operating profit for Exhibitions only +2% due to event cycling, timing and rescheduling. Remaining uncertainty around events in the Middle East (those events represent ~3% of divisional revenue and <0.5% of group revenue) and travel disruption moderated growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Group Financial Performance
Underlying revenue +7%; underlying adjusted operating profit +9%; group adjusted operating margin improved 70 basis points to 35.5%. Adjusted earnings per share +11% at constant currency (68.6p) and net profit +7% at constant currency (over GBP 1.2bn).
Read all positive updates
Company Guidance
Management guided to "another year of strong underlying revenue growth" with underlying adjusted operating profit growth expected to exceed revenue growth, and continued strong adjusted EPS growth on a constant‑currency basis; in the first half underlying revenue was +7% and underlying adjusted operating profit +9% (group margin up 70bps to 35.5%), with segment H1 performance of Risk revenue +8%/op. profit +10%, STM revenue +6%/op. profit +8%, Legal revenue +10%/op. profit +13%, and Exhibitions revenue +6% (H1 op. profit +2%). They reiterated the objective of keeping cost growth below revenue growth (driving profit growth ~2–3pp ahead of revenue in Risk/STM/Legal), and flagged strong cash and capital metrics: cash conversion 98%, EBITDA ~£2.0bn, CapEx £292m (6% of revenue), free cash flow >£1.1bn, net debt £8.7bn (net debt/EBITDA 2.3x), interim dividend up 7% to 20.9p, £103m of acquisitions, £62m disposals and £1.75bn of share buybacks executed of a £2.25bn plan.Relx Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.73B | 9.59B | 9.43B | 9.16B | 8.55B | 7.24B |
| Gross Profit | 6.22B | 6.36B | 6.13B | 5.95B | 5.51B | 4.68B |
| EBITDA | 3.88B | 3.72B | 3.13B | 3.31B | 3.06B | 2.65B |
| Net Income | 2.26B | 2.06B | 1.93B | 1.78B | 1.63B | 1.47B |
Balance Sheet | ||||||
| Total Assets | 14.94B | 14.73B | 15.13B | 14.91B | 15.83B | 13.86B |
| Cash, Cash Equivalents and Short-Term Investments | 218.67M | 130.77M | 119.00M | 155.00M | 334.00M | 113.00M |
| Total Debt | 8.85B | 7.32B | 6.54B | 6.50B | 6.73B | 6.17B |
| Total Liabilities | 13.69B | 12.35B | 11.63B | 11.48B | 12.07B | 10.63B |
| Stockholders Equity | 1.23B | 2.36B | 3.48B | 3.46B | 3.78B | 3.23B |
Cash Flow | ||||||
| Free Cash Flow | 2.95B | 2.81B | 2.59B | 1.98B | 1.97B | 1.68B |
| Operating Cash Flow | 2.97B | 2.84B | 2.61B | 2.46B | 2.40B | 2.02B |
| Investing Cash Flow | -698.66M | -770.00M | -575.00M | -569.00M | -859.00M | -384.00M |
| Financing Cash Flow | -2.26B | -2.05B | -2.06B | -2.06B | -1.33B | -1.61B |
Relx Technical Analysis
Neutral
34.41
Price Trends
33.29
Positive
33.38
Positive
35.55
Negative
Market Momentum
0.92
Negative
55.75
Neutral
26.63
Neutral
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 34.41 is below the 20-day moving average (MA) of 34.67, above the 50-day MA of 33.29, and below the 200-day MA of 35.55, indicating a neutral trend. The MACD of 0.92 indicates Negative momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 26.63 is Neutral, 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 "Tech & Innovation" 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.66B | 12.37 | 28.86% | 2.87% | -0.06% | 173.86% | |
74 Outperform | $12.12B | 31.87 | 19.47% | 1.14% | 10.41% | 27.40% | |
73 Outperform | $61.31B | 20.69 | 125.53% | 2.61% | 5.77% | 25.08% | |
64 Neutral | $10.14B | 24.65 | 9.26% | 2.10% | 7.10% | -22.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | $766.76M | 16.59 | 6.61% | 1.85% | -2.68% | ― |
* Industrials Sector Average
RELX
Relx
35.52
-11.22
-24.01%
WLY
John Wiley Sons Cl A
52.33
15.00
40.19%
NYT
New York Times
63.54
6.72
11.83%
PSO
Pearson
16.46
2.36
16.75%
SCHL
Scholastic
41.98
18.06
75.52%
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.