Relx (RELX) AI Stock Analysis

Compare

236 Followers

Top Page

Relx

(NYSE:RELX)

Rating:75Outperform

Price Target:

$59.00

▲(23.72% Upside)

Relx's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. Technical analysis and valuation present some concerns, but these are offset by the company's strategic growth and cash flow management.

Relx (RELX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$87.35B

Dividend Yield1.72%

Average Volume (3M)1.21M

Price to Earnings (P/E)35.5

Beta (1Y)0.47

Revenue Growth5.32%

EPS Growth6.06%

CountryUS

Employees34,580

SectorIndustrials

Sector Strength78

IndustryPublishing

Share Statistics

EPS (TTM)0.86

Shares Outstanding1,833,679,900

10 Day Avg. Volume1,660,317

30 Day Avg. Volume1,212,759

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.27

Enterprise Value/Revenue11.63

Enterprise Value/Gross Profit17.76

Enterprise Value/Ebitda36.39

Forecast

1Y Price Target

$59.95

Price Target Upside25.71% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Relx Business Overview & Revenue Model

Company DescriptionRELX 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 MoneyRELX 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 Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes income from different business units, highlighting which segments are driving growth and which may need strategic adjustments.

Chart InsightsRelx's Risk segment is experiencing robust growth, with recent earnings highlighting an 8% increase in underlying revenue, driven by strategic focus on analytics and decision tools. The Scientific, Technical, and Medical segment shows volatility, but new product introductions are fostering a 5% revenue rise. Legal and Exhibitions segments are also performing well, with 9% and 8% revenue growth respectively, surpassing pre-pandemic margins. Despite challenges from declining print revenues and currency impacts, the company's strategic transition to digital and strong cash flow management underpin its positive outlook.

Data provided by:

Main Street Data

Relx Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: -9.70%|

Next Earnings Date:Feb 12, 2026

Earnings Call Sentiment Positive

The earnings call presented a largely positive outlook with strong growth in revenue and operating profit across all business segments, successful strategic transitions, and robust cash flow management. However, there were challenges with declining print revenues and unfavorable currency impacts.

Q2-2025 Updates

Positive Updates

Strong Financial Performance

Underlying revenue growth was 7%, with underlying adjusted operating profit growth at 9%. Adjusted earnings per share grew by 10% at constant currency. The interim dividend increased by 7% to 19.5p per share.

Growth in Business Segments

Risk segment saw an 8% increase in underlying revenue growth, STM grew by 5%, Legal improved to 9%, and Exhibitions delivered an 8% growth. Each segment showed positive trends with strong product rollouts and market factors.

Successful Strategic Transition

The company successfully transitioned from print to electronic formats, with print revenues now only 4% of total revenue, down from 64% over 25 years.

Strong Cash Conversion

Cash conversion was robust at 100%, and leverage was at 2.2x, reflecting strong cash flow management.

Negative Updates

Print Revenue Decline

Print and print-related revenues decreased by 21%, indicating a significant fall due to strategic reduction and portfolio changes.

Currency Impact

Total group revenue growth in sterling was only 2%, affected by the comparative strength of sterling against the U.S. dollar.

Company Guidance

In the recent call, the company provided detailed guidance on its financial performance and strategic initiatives. The first half of the fiscal year 2025 showed strong results, with an underlying revenue growth of 7% and an underlying adjusted operating profit growth of 9%. Adjusted earnings per share increased by 10% at constant currency, and the interim dividend was raised by 7% to 19.5p per share. The company's Risk division experienced an 8% increase in underlying revenue, with 9% growth in underlying adjusted operating profit. STM's underlying revenue grew by 5%, with adjusted operating profit up 7%, driven by new product introductions and increased article submissions. Legal saw a 9% increase in underlying revenue, with an 11% rise in adjusted operating profit growth. Exhibitions reported an 8% growth in underlying revenue and a 9% increase in adjusted operating profit, with margins significantly above pre-pandemic levels. Overall, the company maintains a strong growth trajectory across its divisions, driven by operational efficiencies and strategic focus on analytics and decision tools.

Relx Financial Statement Overview

Summary

Relx demonstrates robust financial performance with consistent revenue growth and high profitability margins. The balance sheet shows a strong equity position but with notable leverage. Cash flow generation is strong, indicating efficient capital management.

Income Statement

Very Positive

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

Positive

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

Positive

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

Negative

Last Price47.69

Price Trends

50DMA

52.09

Negative

100DMA

51.93

Negative

200DMA

49.49

Negative

Market Momentum

MACD

-1.36

Positive

RSI

26.36

Positive

STOCH

7.36

Positive

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 47.69 is below the 20-day moving average (MA) of 50.63, below the 50-day MA of 52.09, and below the 200-day MA of 49.49, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 26.36 is Positive, neither overbought nor oversold. The STOCH value of 7.36 is Positive, 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 "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 (71)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RELX	75 Outperform	$87.35B	35.46	70.68%	1.72%	5.32%	6.06%
PSO	74 Outperform	$9.24B	16.90	11.74%	2.05%	1.93%	34.40%
NYT	73 Outperform	$9.79B	30.96	17.13%	1.03%	7.82%	19.39%
Sector *	71 Outperform	¥267.81B	14.79	8.32%	2.78%	6.12%	11.24%
WM	70 Outperform	$93.85B	34.57	32.67%	1.39%	14.18%	7.02%
WLY	68 Neutral	$2.11B	25.68	11.28%	3.57%	-10.43%	―
SCHL	66 Neutral	$653.55M	37.85	-0.19%	3.04%	2.25%	-103.50%

* Industrials Sector Average

Performance Comparison

RELX

Relx

47.96

3.13

6.98%

WLY

John Wiley Sons Cl A

39.56

-4.83

-10.88%

NYT

New York Times

60.13

6.48

12.08%

PSO

Pearson

14.55

1.27

9.56%

SCHL

Scholastic

25.95

-3.90

-13.07%

Waste Management

226.15

23.63

11.67%

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.Date of analysis: Jul 26, 2025