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Relx PLC (RELX)
NYSE:RELX
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Relx
(NYSE:RELX)
78Outperform
Relx (RELX) vs. S&P 500 (SPY)
Market Cap
$87.64B
Dividend Yield1.64%
Average Volume (3M)611.69K
Price to Earnings (P/E)35.6
Beta (1Y)0.80
Revenue Growth5.86%
EPS Growth13.13%
CountryUS
Employees34,580
SectorIndustrials
Sector Strength69
IndustryCorporate Services
Share Statistics
EPS (TTM)1.32
Shares Outstanding1,854,016,700
10 Day Avg. Volume683,600
30 Day Avg. Volume611,693
Financial Highlights & Ratios
PEG Ratio2.71
Price to Book (P/B)N/A
Price to Sales (P/S)7.20
Price to Cash Flow (P/CF)25.20
P/FCF Ratio27.80
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 Covering1
Relx Business Overview & Revenue Model
Company DescriptionLondon-based RELX Plc provides information and analytics solutions for professional and business customers across industries. It operates through the following business segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal; and Exhibitions.
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
Neutral
47.73
Price Trends
48.59
Negative
47.72
Positive
46.86
Positive
Market Momentum
-0.47
Positive
44.11
Neutral
22.04
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 47.73 is below the 20-day moving average (MA) of 48.93, below the 50-day MA of 48.59, and above the 200-day MA of 46.86, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 22.04 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 “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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $87.64B | 35.64 | 56.34% | 1.64% | 5.86% | 13.13% | |
70 Outperform | $12.18B | 33.14 | 25.11% | 0.59% | 11.60% | 161.17% | |
69 Neutral | $42.07B | 38.57 | -117.99% | 1.22% | 12.94% | -2.54% | |
64 Neutral | $40.75B | 43.31 | 463.98% | 0.54% | 7.47% | 59.46% | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% | |
61 Neutral | $3.55B | ― | -0.85% | 2.48% | 2.93% | 39.49% |
* Industrials Sector Average
Performance Comparison
RELX
Relx
47.73
5.17
12.15%
MORN
Morningstar
287.53
-20.21
-6.57%
MSCI
MSCI
545.07
-1.45
-0.27%
TRI
Thomson Reuters
171.02
15.89
10.24%
VRSK
Verisk Analytics
288.03
56.18
24.23%
DNB
Dun & Bradstreet Holdings
7.89
-1.96
-19.90%
Relx Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -7.21% | 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.Highlights
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.
Lowlights
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.