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Relx
(NYSE:RELX)
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Rating:73Outperform
Price Target:
$37.00
â–¼(-7.91% Downside)
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
Cash generation
Consistently strong cash conversion and high free cash flow provide durable internal funding for dividends, buybacks, M&A and capex. This reduces refinancing risk, sustains capital returns, and gives management flexibility to invest in product development and strategic initiatives through economic cycles.
Negative Factors
Elevated leverage
Relatively high net debt and a leveraged capital structure reduce financial flexibility and increase vulnerability to macro shocks or rising rates. Equity decline and buyback-funded returns further constrain balance sheet headroom, limiting capacity for larger acquisitions or aggressive counter-cyclical moves.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently strong cash conversion and high free cash flow provide durable internal funding for dividends, buybacks, M&A and capex. This reduces refinancing risk, sustains capital returns, and gives management flexibility to invest in product development and strategic initiatives through economic cycles.
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
$57.37B
Dividend Yield2.74%
Average Volume (3M)2.67M
Price to Earnings (P/E)21.7
Beta (1Y)0.42
Revenue Growth4.85%
EPS Growth12.14%
CountryUS
Employees34,580
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.11
Shares Outstanding1,751,627,000
10 Day Avg. Volume2,806,235
30 Day Avg. Volume2,669,259
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 Target
$47.90Price Target Upside19.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.88
Revenue Forecast (FY)$13.50B
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)
| 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.
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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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.59B | 9.43B | 9.16B | 8.55B | 7.24B |
| Gross Profit | 6.36B | 6.13B | 5.95B | 5.51B | 4.68B |
| EBITDA | 3.72B | 3.13B | 3.31B | 3.06B | 2.65B |
| Net Income | 2.06B | 1.93B | 1.78B | 1.63B | 1.47B |
Balance Sheet | |||||
| Total Assets | 14.73B | 15.13B | 14.92B | 15.83B | 13.86B |
| Cash, Cash Equivalents and Short-Term Investments | 130.77M | 119.00M | 155.00M | 334.00M | 113.00M |
| Total Debt | 7.32B | 6.54B | 6.50B | 6.73B | 6.17B |
| Total Liabilities | 12.35B | 11.63B | 11.48B | 12.07B | 10.63B |
| Stockholders Equity | 2.36B | 3.48B | 3.46B | 3.78B | 3.23B |
Cash Flow | |||||
| Free Cash Flow | 2.81B | 2.59B | 1.98B | 1.97B | 1.68B |
| Operating Cash Flow | 2.84B | 2.61B | 2.46B | 2.40B | 2.02B |
| Investing Cash Flow | -770.00M | -575.00M | -569.00M | -859.00M | -384.00M |
| Financing Cash Flow | -2.05B | -2.06B | -2.06B | -1.33B | -1.61B |
Relx Technical Analysis
Negative
40.18
Price Trends
32.81
Negative
33.41
Negative
36.33
Negative
Market Momentum
0.18
Negative
49.52
Neutral
51.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELX, the sentiment is Negative. The current price of 40.18 is above the 20-day moving average (MA) of 32.41, above the 50-day MA of 32.81, and above the 200-day MA of 36.33, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 51.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $2.58B | 11.76 | 28.86% | 4.48% | -0.06% | 173.86% | |
73 Outperform | $57.37B | 21.72 | 90.85% | 2.00% | 4.85% | 12.14% | |
73 Outperform | $12.09B | 31.02 | 19.22% | 0.95% | 10.41% | 27.40% | |
66 Neutral | $1.02B | 17.98 | 6.91% | 2.78% | 1.38% | 296.53% | |
65 Neutral | $9.86B | 23.21 | 9.26% | 2.11% | 3.91% | -19.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
RELX
Relx
32.74
-19.66
-37.51%
WLY
John Wiley Sons Cl A
49.47
11.47
30.17%
NYT
New York Times
72.99
20.76
39.74%
PSO
Pearson
16.09
2.19
15.73%
SCHL
Scholastic
46.36
25.35
120.65%
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.