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RELX

LSE:REL
Snowflake Description

Established dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
REL
LSE
£39B
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

RELX PLC provides information based-analytics and decision tools for professional and business customers in the United States and internationally. The last earnings update was 186 days ago. More info.


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REL Share Price and Events
7 Day Returns
1.3%
LSE:REL
1.8%
GB Professional Services
-1.1%
GB Market
1 Year Returns
25.1%
LSE:REL
28.7%
GB Professional Services
12.7%
GB Market
REL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RELX (REL) 1.3% 4.9% 9.7% 25.1% 42.2% 74.6%
GB Professional Services 1.8% 4% 11.5% 28.7% 51% 89.3%
GB Market -1.1% -0.2% 6% 12.7% 6.3% 9.6%
1 Year Return vs Industry and Market
  • REL underperformed the Professional Services industry which returned 28.7% over the past year.
  • REL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 12.7% over the past year.
Price Volatility
REL
Industry
5yr Volatility vs Market

Value

 Is RELX undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RELX to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RELX.

LSE:REL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:REL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.832 (1 + (1- 19%) (17.65%))
0.967
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.967 * 6.07%)
6.4%

Discounted Cash Flow Calculation for LSE:REL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RELX is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

LSE:REL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.4%)
2020 1,889.27 Analyst x9 1,775.65
2021 1,976.68 Analyst x7 1,746.08
2022 2,037.43 Est @ 3.07% 1,691.50
2023 2,084.49 Est @ 2.31% 1,626.50
2024 2,121.52 Est @ 1.78% 1,555.84
2025 2,151.27 Est @ 1.4% 1,482.77
2026 2,175.80 Est @ 1.14% 1,409.50
2027 2,196.63 Est @ 0.96% 1,337.41
2028 2,214.85 Est @ 0.83% 1,267.40
2029 2,231.23 Est @ 0.74% 1,199.99
Present value of next 10 years cash flows £15,092.00
LSE:REL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £2,231.23 × (1 + 0.53%) ÷ (6.4% – 0.53%)
£38,220.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £38,220.28 ÷ (1 + 6.4%)10
£20,555.54
LSE:REL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £15,092.00 + £20,555.54
£35,647.54
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £35,647.54 / 1,928.46
£18.49
LSE:REL Discount to Share Price
Calculation Result
Value per share (GBP) From above. £18.49
Current discount Discount to share price of £20.20
= -1 x (£20.20 - £18.49) / £18.49
-9.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of RELX is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RELX's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RELX's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:REL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.78
LSE:REL Share Price ** LSE (2020-01-27) in GBP £20.2
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PE Ratio Median Figure of 31 Publicly-Listed Professional Services Companies 22.52x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 18.35x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RELX.

LSE:REL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:REL Share Price ÷ EPS (both in GBP)

= 20.2 ÷ 0.78

25.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RELX is overvalued based on earnings compared to the GB Professional Services industry average.
  • RELX is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does RELX's expected growth come at a high price?
Raw Data
LSE:REL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
5.3%per year
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PEG Ratio Median Figure of 23 Publicly-Listed Professional Services Companies 1.65x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 552 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

LSE:REL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.98x ÷ 5.3%

4.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RELX is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on RELX's assets?
Raw Data
LSE:REL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £1.14
LSE:REL Share Price * LSE (2020-01-27) in GBP £20.2
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PB Ratio Median Figure of 42 Publicly-Listed Professional Services Companies 3.07x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,317 Publicly-Listed Companies 1.61x
LSE:REL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:REL Share Price ÷ Book Value per Share (both in GBP)

= 20.2 ÷ 1.14

17.78x

* Primary Listing of RELX.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RELX is overvalued based on assets compared to the GB Professional Services industry average.
X
Value checks
We assess RELX's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. RELX has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is RELX expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RELX expected to grow at an attractive rate?
  • RELX's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • RELX's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • RELX's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:REL Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:REL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 5.3%
LSE:REL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 3.5%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 9.2%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:REL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:REL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 8,835 1,789 1
2021-12-31 8,515 2,401 1,773 13
2020-12-31 8,225 2,262 1,660 17
2020-01-27
2019-12-31 7,938 2,193 1,586 17
LSE:REL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 7,727 2,063 1,523
2019-03-31 7,610 2,024 1,473
2018-12-31 7,492 1,985 1,422
2018-09-30 7,391 1,950 1,533
2018-06-30 7,290 1,914 1,644
2018-03-31 7,316 1,914 1,646
2017-12-31 7,341 1,914 1,648
2017-09-30 7,336 1,952 1,456
2017-06-30 7,342 1,871 1,285
2017-03-31 7,119 1,777 1,223
2016-12-31 6,889 1,741 1,150
2016-09-30 6,580 1,590 1,132

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RELX's earnings are expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
  • RELX's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:REL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from RELX Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:REL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.97 0.97 0.97 1.00
2021-12-31 0.90 1.06 0.84 7.00
2020-12-31 0.84 0.98 0.76 9.00
2020-01-27
2019-12-31 0.79 0.93 0.76 8.00
LSE:REL Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.78
2019-03-31 0.75
2018-12-31 0.72
2018-09-30 0.77
2018-06-30 0.82
2018-03-31 0.82
2017-12-31 0.82
2017-09-30 0.72
2017-06-30 0.63
2017-03-31 0.60
2016-12-31 0.56
2016-09-30 0.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • RELX is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess RELX's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RELX has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has RELX performed over the past 5 years?

  • RELX's last earnings update was 186 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RELX's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RELX's year on year earnings growth rate has been positive over the past 5 years.
  • RELX's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • RELX's 1-year earnings growth is negative, it can't be compared to the GB Professional Services industry average.
Earnings and Revenue History
RELX's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RELX Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:REL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 7,727.00 1,523.00 3,018.00
2019-03-31 7,609.50 1,472.50 2,971.50
2018-12-31 7,492.00 1,422.00 2,925.00
2018-09-30 7,391.00 1,533.00 2,880.00
2018-06-30 7,290.00 1,644.00 2,835.00
2018-03-31 7,315.50 1,646.00 2,847.50
2017-12-31 7,341.00 1,648.00 2,860.00
2017-09-30 7,335.50 1,455.50 2,873.00
2017-06-30 7,342.00 1,285.00 2,898.00
2017-03-31 7,118.50 1,223.00 2,824.00
2016-12-31 6,889.00 1,150.00 2,744.00
2016-09-30 6,579.50 1,131.50 2,616.50
2016-06-30 6,264.00 1,102.00 2,483.00
2016-03-31 6,117.50 1,055.00 2,456.50
2015-12-31 5,971.00 1,008.00 2,430.00
2015-09-30 5,930.50 986.50 2,440.00
2015-06-30 5,890.00 965.00 2,450.00
2015-03-31 5,831.50 960.00 2,433.00
2014-12-31 5,773.00 955.00 2,416.00
2014-09-30 5,815.00 1,005.00 2,446.50
2014-06-30 5,857.00 1,055.00 2,477.00
2014-03-31 5,946.00 1,082.50 2,533.00
2013-12-31 6,035.00 1,110.00 2,589.00
2013-09-30 6,061.50 1,055.50 2,610.00
2013-06-30 6,088.00 1,001.00 2,631.00
2013-03-31 6,102.00 1,022.50 2,655.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst RELX made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • RELX used its assets more efficiently than the GB Professional Services industry average last year based on Return on Assets.
  • RELX has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RELX's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RELX has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is RELX's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RELX's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RELX's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • RELX's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of RELX's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RELX Company Filings, last reported 6 months ago.

LSE:REL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 2,232.00 6,514.00 118.00
2019-03-31 2,232.00 6,514.00 118.00
2018-12-31 2,359.00 6,021.00 114.00
2018-09-30 2,359.00 6,021.00 114.00
2018-06-30 2,163.00 6,009.00 105.00
2018-03-31 2,163.00 6,009.00 105.00
2017-12-31 2,313.00 4,877.00 111.00
2017-09-30 2,313.00 4,877.00 111.00
2017-06-30 1,916.00 5,196.00 160.00
2017-03-31 1,916.00 5,196.00 160.00
2016-12-31 2,308.00 5,256.00 162.00
2016-09-30 2,358.00 4,880.00 162.00
2016-06-30 2,009.00 4,818.00 211.00
2016-03-31 2,009.00 4,818.00 211.00
2015-12-31 2,178.00 3,922.00 122.00
2015-09-30 2,178.00 3,922.00 122.00
2015-06-30 1,825.00 3,956.00 144.00
2015-03-31 1,825.00 3,956.00 144.00
2014-12-31 2,137.00 3,813.00 276.00
2014-09-30 2,137.00 3,813.00 276.00
2014-06-30 1,933.00 3,465.00 155.00
2014-03-31 1,933.00 3,465.00 155.00
2013-12-31 2,423.00 3,268.00 132.00
2013-09-30 2,423.00 3,268.00 132.00
2013-06-30 2,442.00 3,790.00 374.00
2013-03-31 2,442.00 3,790.00 374.00
  • RELX's level of debt (291.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (178.5% vs 291.8% today).
  • Debt is well covered by operating cash flow (31.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.4x coverage).
X
Financial health checks
We assess RELX's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RELX has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is RELX's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.08%
Current annual income from RELX dividends. Estimated to be 2.49% next year.
If you bought £2,000 of RELX shares you are expected to receive £42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RELX's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.84%).
  • RELX's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:REL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 678 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.8%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:REL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.52 1.00
2021-12-31 0.52 14.00
2020-12-31 0.49 17.00
2020-01-27
2019-12-31 0.46 17.00
LSE:REL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-05-23 0.421 2.221
2018-02-15 0.394 2.435
2017-03-07 0.360 2.185
2017-02-23 0.360 2.370
2016-07-28 0.326 2.281
2016-03-08 0.297 2.313
2016-02-25 0.297 2.397
2015-03-10 0.260 2.313
2015-02-26 0.260 2.309
2014-03-11 0.246 2.483
2014-02-27 0.246 2.673
2013-03-18 0.230 2.798
2013-02-28 0.230 3.135
2012-03-12 0.216 3.733
2012-02-16 0.216 3.936
2011-03-09 0.204 3.891
2010-03-18 0.204 3.862
2010-02-18 0.204 4.080
2009-03-26 0.203 4.256
2009-02-19 0.203 4.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of RELX's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess RELX's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RELX afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RELX has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of RELX's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Erik Engstrom
COMPENSATION £8,414,000
AGE 56
TENURE AS CEO 10.2 years
CEO Bio

Mr. Erik Engstrom is Non-Executive Director of Smith & Nephew plc since January 1, 2015. He was a Partner at General Atlantic Partners. Before that he was President and Chief Operating Officer of Random House Inc and, before its merger with Random House, President and Chief Executive Officer of Bantam Doubleday Dell, North America. Began his career as a consultant with McKinsey. Served as a Non-Executive Director of Eniro AB and Svenska Cellulosa Aktiebolaget SCA. He holds a BSc from Stockholm School of Economics, an MSc from the Royal Institute of Technology in Stockholm, and gained an MBA from Harvard Business School as a Fulbright Scholar.

CEO Compensation
  • Erik's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Erik's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the RELX management team in years:

4.3
Average Tenure
54
Average Age
  • The tenure for the RELX management team is about average.
Management Team

Erik Engstrom

TITLE
CEO & Executive Director
COMPENSATION
£8M
AGE
56
TENURE
10.2 yrs

Nick Luff

TITLE
CFO & Executive Director
COMPENSATION
£4M
AGE
52
TENURE
5.3 yrs

Tracey Aiken

TITLE
Vice President of Operations

Kumsal Besson

TITLE
Chief Executive Officer of Scientific
AGE
45
TENURE
1 yrs

Colin Tennant

TITLE
Head of Investor Relations

Hank Udow

TITLE
Chief Legal Officer & Company Secretary
AGE
61
TENURE
8.8 yrs

Gunjan Aggarwal

TITLE
Chief Human Resources Officer
TENURE
3 yrs

J. Heynecke

TITLE
Senior Vice President of Product Management Pure
TENURE
3.2 yrs

Jelena Sevo

TITLE
Chief Strategy Officer
TENURE
1 yrs

Mike Walsh

TITLE
Chief Executive Officer of Legal
TENURE
9 yrs
Board of Directors Tenure

Average tenure and age of the RELX board of directors in years:

5.1
Average Tenure
61
Average Age
  • The tenure for the RELX board of directors is about average.
Board of Directors

Anthony Habgood

TITLE
Non-Executive Chairman
COMPENSATION
£652K
AGE
73
TENURE
10.6 yrs

Erik Engstrom

TITLE
CEO & Executive Director
COMPENSATION
£8M
AGE
56
TENURE
15.4 yrs

Nick Luff

TITLE
CFO & Executive Director
COMPENSATION
£4M
AGE
52
TENURE
5.8 yrs

Adrian Hennah

TITLE
Independent Non-Executive Director
COMPENSATION
£120K
AGE
62
TENURE
8.8 yrs

Wolfhart Hauser

TITLE
Senior Independent Director
COMPENSATION
£160K
AGE
70
TENURE
3.8 yrs

Linda Sanford

TITLE
Non-Executive Director
COMPENSATION
£127K
AGE
66
TENURE
7.1 yrs

Marike Van Lier Lels

TITLE
Independent Non-Executive Director
COMPENSATION
£128K
AGE
60
TENURE
4.5 yrs

Robert MacLeod

TITLE
Non-Executive Director
COMPENSATION
£108K
AGE
55
TENURE
3.8 yrs

Suzanne Wood

TITLE
Independent Non-Executive Director
COMPENSATION
£116K
AGE
58
TENURE
2.3 yrs

Andy Sukawaty

TITLE
Non-Executive Director
AGE
64
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
01. May 19 Sell Henry Udow Individual 29. Apr 19 29. Apr 19 -25,000 £17.59 £-439,750
27. Feb 19 Sell Nicholas Luff Individual 22. Feb 19 22. Feb 19 -21,393 £17.73 £-378,760
X
Management checks
We assess RELX's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RELX has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should RELX (LON:REL) Be Disappointed With Their 96% Profit?

To wit, the RELX share price has climbed 96% in five years, easily topping the market return of -2.3% (ignoring dividends). … During five years of share price growth, RELX achieved compound earnings per share (EPS) growth of 8.3% per year. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR).

Simply Wall St -

Is RELX PLC's (LON:REL) ROE Of 68% Impressive?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for RELX: 68% = UK£1.5b ÷ UK£2.2b (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does RELX Have A Good Return On Equity? … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

RELX PLC (LON:REL) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

It's positive to see that RELX's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. … While earnings per share growth has been modest, RELX's dividend payouts are around an average level; without a sharp change in earnings we feel that the dividend is likely somewhat sustainable.

Simply Wall St -

These 4 Measures Indicate That RELX (LON:REL) Is Using Debt Reasonably Well

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … Our View Happily, RELX's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt.

Simply Wall St -

What Should You Know About The Future Of RELX PLC's (LON:REL)?

Looking at RELX PLC's (LON:REL) earnings update in December 2018, analysts seem cautiously bearish, with profits predicted to rise by 7.8% next year compared with the higher past 5-year average growth rate of 11%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … LSE:REL Past and Future Earnings, June 25th 2019 This results in an annual growth rate of 6.8% based on the most recent earnings level of UK£1.4b to the final forecast of UK£1.8b by 2022.

Simply Wall St -

Is RELX PLC (LON:REL) A Great Dividend Stock?

Dividend Volatility Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. RELX has grown its earnings per share at 7.5% per annum over the past five years. The rate at which earnings have grown is quite decent, and by paying out more than half of its earnings as dividends, the company is striking a reasonable balance between reinvestment and returns to shareholders. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

What Are Analysts Saying About RELX PLC's (LON:REL) Growth?

Below is my commentary, albeit very simple and high-level, on how market analysts predict RELX's earnings growth trajectory over the next few years and whether the future looks brighter. … View our latest analysis for RELX Analysts' expectations for this coming year seems rather subdued, with earnings climbing by a single digit 7.7%. … LSE:REL Past and Future Earnings, May 22nd 2019 Even though it is useful to be aware of the rate of growth each year relative to today’s level, it may be more beneficial to estimate the rate at which the earnings are growing every year, on average.

Simply Wall St -

Estimating The Intrinsic Value Of RELX PLC (LON:REL)

by taking the foreast future cash flows of the company and discounting them back to today's value. … I will be using the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Should You Be Impressed By RELX PLC's (LON:REL) ROE?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows RELX has a return on equity of 61% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is RELX PLC’s (LON:REL) Return On Capital Employed Any Good?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Company Info

Description

RELX PLC provides information based-analytics and decision tools for professional and business customers in the United States and internationally. It operates through four segments: Scientific, Technical & Medical; Risk & Business Analytics; and Exhibitions. The Scientific, Technical & Medical segment provides information and analytics to institutions and professionals that enables progress in science, advance healthcare, and performance improvement. The Risk & Business Analytics segment offers information-based analytics and decision tools that combines public and industry specific content with technology and algorithms to assist in evaluating and predicting risk. The Exhibitions segment is involved in the events business. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. RELX PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.

Details
Name: RELX PLC
REL
Exchange: LSE
Founded: 1903
£38,954,819,724
1,928,456,422
Website: http://www.relx.com
Address: RELX PLC
1-3 Strand,
London,
Greater London, WC2N 5JR,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE REL PLC Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK RLXX.F PLC Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB RDEB PLC Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
ENXTAM REN PLC Ordinary Shares Euronext Amsterdam NL EUR 02. Jan 1992
BMV REL N PLC Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE RELL PLC Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
NYSE RELX SPON ADS EACH REPR 0.25 ORD SHS GBP0.144 New York Stock Exchange US USD 29. Jan 1991
DB RDED SPON ADS EACH REPR 0.25 ORD SHS GBP0.144 Deutsche Boerse AG DE EUR 29. Jan 1991
Number of employees
Current staff
Staff numbers
30,000
RELX employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/01/27 21:42
End of day share price update: 2020/01/27 00:00
Last estimates confirmation: 2020/01/27
Last earnings filing: 2019/07/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.