RELX Plc Fundamental Analysis (NYSE: RELX)
RELX Plc (NYSE: RELX) shows moderate financial fundamentals with a PE ratio of 20.37, profit margin of 23.28%, and ROE of 1.26%. The company generates $9.5B in annual revenue with weak year-over-year growth of 1.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RELX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRELX demonstrates superior asset utilization.
Valuation Score
ExcellentRELX trades at attractive valuation levels.
Growth Score
WeakRELX faces weak or negative growth trends.
Financial Health Score
WeakRELX carries high financial risk with limited liquidity.
Profitability Score
ExcellentRELX achieves industry-leading margins.
Key Financial Metrics
Is RELX Expensive or Cheap?
P/E Ratio
RELX trades at 20.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RELX's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values RELX Plc at 36.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.24 times EBITDA. This is generally considered low.
How Well Does RELX Make Money?
Net Profit Margin
For every $100 in sales, RELX Plc keeps $23.28 as profit after all expenses.
Operating Margin
Core operations generate 31.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.26 in profit for every $100 of shareholder equity.
ROA
RELX Plc generates $15.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RELX Plc generates strong operating cash flow of $2.90B, reflecting robust business health.
Free Cash Flow
RELX Plc generates strong free cash flow of $2.88B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.65 in free cash annually.
FCF Yield
RELX converts 6.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
36.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.26
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How RELX Stacks Against Its Sector Peers
| Metric | RELX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.37 | 30.97 | Better (Cheaper) |
| ROE | 126.04% | 1108.00% | Weak |
| Net Margin | 23.28% | -21241.00% (disorted) | Strong |
| Debt/Equity | 7.19 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.45 | 21.73 | Weak Liquidity |
| ROA | 15.15% | -1325740.00% (disorted) | Strong |
RELX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RELX Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
77.15%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
89.22%
Industry Style: Cyclical, Value, Infrastructure
High Growth