Relx (RELX) AI Stock Analysis

• Market Cap: $85.21B
• Dividend Yield: 1.76%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.48
• Revenue Growth: 5.32%
• EPS Growth: 6.06%
• Country: US
• Employees: 34,580
• Sector: Industrials
• Sector Strength: 72
• Industry: Publishing
• EPS (TTM): 0.86
• Shares Outstanding: 1,824,905,500
• 10 Day Avg. Volume: 1,131,264
• 30 Day Avg. Volume: 1,227,399
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 11.63
• Enterprise Value/Gross Profit: 17.76
• Enterprise Value/Ebitda: 36.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $52.00 ▲(12.77% Upside)

Relx's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While technical analysis suggests a neutral trend, the high P/E ratio indicates potential overvaluation. The company's strategic transition to digital and robust cash flow management support its positive outlook.

Relx Business Overview & Revenue Model

Company Description

RELX PLC provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk. The Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals to progress in science and advance healthcare. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the events business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.

How the Company Makes Money

RELX generates revenue primarily through subscription-based models, licensing agreements, and event participation fees. In the Scientific, Technical & Medical sector, revenue is driven by the sale of academic journals, books, and database subscriptions. The Risk & Business Analytics sector earns money by providing data and analytics solutions to businesses, including risk assessment tools and compliance services. The Legal sector generates income from subscriptions to legal research platforms and tools that aid law professionals. Additionally, the Exhibitions sector contributes through fees from exhibitors and attendees at industry-related events. RELX also benefits from strategic partnerships with academic institutions and industry organizations, enhancing its data offerings and expanding its customer base.

Relx Financial Statement Overview

Summary

Relx exhibits strong financial performance with consistent revenue growth and high profitability margins. The balance sheet shows a solid equity position with manageable leverage, though attention to debt levels is advised. The cash flow statement underscores robust cash generation and efficient capital utilization.

Income Statement

Relx has shown consistent revenue growth over the years, with a revenue growth rate of 3.0% from 2023 to 2024. The company maintains strong profitability metrics, with a gross profit margin of 65.0% and a net profit margin of 20.5% in 2024. The EBIT margin stands at 30.3%, and the EBITDA margin is 33.0%, indicating efficient operations and cost management. Overall, the income statement reflects a robust financial performance with strong growth and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.88, indicating a balanced approach to leveraging. The return on equity (ROE) is strong at 55.5%, reflecting effective use of equity to generate profits. The equity ratio is 23.0%, suggesting a solid equity base relative to total assets. While the company has a healthy equity position, the relatively high leverage could pose risks if not managed carefully.

Cash Flow

Relx demonstrates strong cash flow generation, with a free cash flow growth rate of 30.7% from 2023 to 2024. The operating cash flow to net income ratio is 1.35, indicating efficient conversion of income to cash. The free cash flow to net income ratio is 1.34, highlighting strong cash flow relative to earnings. The cash flow statement reflects a healthy cash position and efficient capital management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.53B	9.43B	9.16B	8.55B	7.24B	7.11B
Gross Profit	6.24B	6.13B	5.95B	5.51B	4.68B	4.62B
EBITDA	3.05B	3.11B	3.31B	3.06B	2.62B	2.46B
Net Income	1.93B	1.93B	1.78B	1.63B	1.47B	1.22B
Balance Sheet
Total Assets	14.32B	15.13B	14.92B	15.83B	13.86B	14.14B
Cash, Cash Equivalents and Short-Term Investments	211.00M	119.00M	155.00M	334.00M	113.00M	88.00M
Total Debt	7.54B	6.54B	6.50B	6.73B	6.17B	7.12B
Total Liabilities	12.13B	11.63B	11.48B	12.07B	10.63B	12.04B
Stockholders Equity	2.18B	3.48B	3.46B	3.78B	3.23B	2.10B
Cash Flow
Free Cash Flow	2.74B	2.59B	1.98B	1.97B	1.68B	1.23B
Operating Cash Flow	2.76B	2.61B	2.46B	2.40B	2.02B	1.60B
Investing Cash Flow	-843.00M	-575.00M	-569.00M	-859.00M	-384.00M	-1.17B
Financing Cash Flow	-1.85B	-2.06B	-2.06B	-1.33B	-1.61B	-474.00M

Relx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELX, the sentiment is Positive. The current price of 46.11 is above the 20-day moving average (MA) of 45.99, below the 50-day MA of 46.62, and below the 200-day MA of 49.69, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 65.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RELX.

Relx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RELX	―	$85.21B	34.62	70.68%	1.76%	5.32%	6.06%
NYT	―	$9.28B	29.35	17.13%	1.17%	7.82%	19.39%
PSO	―	$9.62B	17.36	11.74%	2.02%	1.93%	34.40%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WLY	―	$1.98B	20.91	13.45%	3.83%	-8.50%	―
SCHL	―	$735.06M	―	-1.14%	2.76%	0.97%	-197.80%
GCI	―	$552.75M	5.67	47.54%	―	-8.00%	―

Relx Corporate Events

RELX PLC Reports Strong Growth in H1 2025

RELX PLC, a global provider of information-based analytics and decision tools, operates primarily in the information services industry, offering unique solutions across various sectors including risk, scientific, technical, medical, legal, and exhibitions. In its latest earnings report for the first half of 2025, RELX reported strong financial performance with a 7% underlying revenue growth, reaching £4,741 million, and a 9% increase in adjusted operating profit to £1,652 million. The company also declared an interim dividend of 19.5p per share, marking a 7% increase from the previous year. Key highlights include the completion of three acquisitions totaling £262 million and a significant share buyback program, with £1,000 million already completed out of the planned £1,500 million. The company’s strategic shift towards higher growth analytics and decision tools has been a major driver of its improved performance, with all business areas contributing positively. Looking ahead, RELX remains optimistic about its growth trajectory, expecting continued strong underlying growth in revenue and adjusted operating profit for the full year, driven by its focus on analytics and decision tools.

Relx PLC Earnings Call Highlights Strong Growth and Strategic Shifts

Relx PLC’s recent earnings call painted a largely positive picture, showcasing strong growth across all business segments and strategic transitions that have bolstered the company’s financial standing. Despite some challenges with declining print revenues and unfavorable currency impacts, the overall sentiment was optimistic, highlighting robust revenue and profit growth, as well as effective cash flow management.