UK stock report - Reed Elsevier
RELX increases June 23, 2017 16:30 BST
NEWS BITES - EUROPE
RELX PLC (L:REL), the 2nd largest Media company by market cap in the United Kingdom, has increased GBX7.0 (0.4%) from its last trading session of June 22 to close at GBX1,701.0. Compared with the FTSE 100 Index which fell 15.2 points (0.2%) in the day, the relative price increase was 0.6%. The volume was 0.5 times the average daily trading volume of 3.5 million shares.
RELX BULLISH SIGNALS
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1.7. Compared with the rest of the market the stock is undervalued.
+ Interest cover defined by EBIT/I is 8.3 times. This indicates it is less leveraged.
+ Net profit margin has averaged 16.9% in the last 3 years. This is considered superior and suggests a high margin of safety.
1.2 Undervaluation [compared with sector average]:
+ Return on Assets 8.8% [2.3%].
+ Return on Capital Employed 20.9% [5.0%].
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 1,695.7 minus the 26-day EMA of 1,674.56 is positive 21.14 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.
+ In the last three months the stock has hit a new 52-week high twenty-three times, pointing to a significant uptrend.
+ The stock's relative price strength percentile is rising at 66 for 6 months, 67 for 3 months and 75 for 1 month.
+ The present value of GBP1,000 (PV1000) invested one year ago in RELX is GBP1,388, comprising a capital gain of GBP379 and dividend reinvested of GBP10.
|FTSE 100 Index||995||984||1,171|
+ The present value of GBP1,000 (PV1000) invested twenty years ago in RELX is GBP5,255, including a capital gain of GBP2,930 and dividend reinvested of GBP1,325.
+ 20 years Multiplier in GBP = 5.255x
+ Compound Annual Growth Rate (CAGR) in GBP = 8.7%
Jun 23, 2017: GBP 1 equals USD 1.27
1.4 High Performance Indicators:
|Description||Value||Rank In Market|
|Today's Turnover||GBP27.7 million (US$35 million)||In Top 3%|
|Price/MAP50||1.04||In Top Quartile|
|Return on Capital Employed [ROCE] %||20.9||In Top Quartile|
|Price/MAP200||1.13||In Top Quartile|
|Volatility %||1.1||In Top Quartile|
RELX BEARISH SIGNALS
+ The relative yield of the stock, defined by its yield of 0.6%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 3.7% is 16.3%. This suggests the stock is overvalued in dividend yield terms.
+ Total Liabilities/EBITDA of 6.5 which compares unfavourably with the Joseph Piotroski benchmark of 5.
2.2 Overvaluation [compared with sector average]:
+ Price/Sales of 3.4 [2.3].
+ Dividend yield of 0.6% [3.4%].
+ The price decreased 0.8% in the last week.
+ Compared with the FTSE 100 Index which fell 0.5% for the week, this represented a relative price decrease for RELX stock of 0.3% for the week.
+ The 1.6% discount to 12-month high of GBX1,728.0 against the 42.9% premium to 12-month low of GBX1,190.26 suggests the climb might be peaking.
2.4 Low Performance Indicator:
|Description||Value||Rank In Market|
|Total Debt to Equity||1.6||In Bottom Quartile|
PRICE VOLUME DYNAMICS
3.1 Moving Annual Return
|REL||Close (GBX)||Dividends (GBX)||Capital Gain %||% Yield||Annual Return %|
|1 Yr ago||1,233.94||29.7||19||2.9||21.9|
|2 Yrs ago||1,036.9||26||14.8||2.9||17.7|
|3 Yrs ago||903.19||25.34||36.6||3.8||40.4|
|4 Yrs ago||661.14||25.56||53.4||5.9||59.3|
3.2 Aggregate Volumes, Prices and Turnover Period:
[Volume Index or VI in brackets; 1 is average]
+ London: REL.L 1,626,910 [VI of 0.5] volume 50.11% of aggregate. Price: GBX1,701.0.
+ Amsterdam: REN.AE 1,620,000 [VI of 0.7] volume 49.89% of aggregate. Price: EUR18.59. Using the current exchange rate of EUR1 equals 88.06GBX, The shares are at a 3.8% discount to the close price on London.
+ Aggregate volume: there were 3.2 million shares of RELX worth GBP54.2 million traded today. The aggregate volume was 0.6 times average trading of 5.9 million shares.
The turnover rate in the 12 months to date was 62.1% (or a turnover period of 1 year 7 months). This average length of ownership of the stock at 80.5 times the average holding period of 7 days for stocks in the FTSE 100 Index suggests a larger number of core investors, making a long-term investment safer.
4.1 Global Rank [out of 47,450 stocks] and Rank in the Europe Region [out of 8,291 stocks]
|Description||Value||Global Rank||In Eur Region|
|Total Assets (US$)||13.3B||2,148||427|
|Net Profit (US$)||1.2B||838||176|
|Return on Equity %||50.7||602||133|
|Net Profit Margin %||17.0||6,663||1,182|
|PV$1000 (1Year) US$*||1,197||15,161||2,695|
|US$* Change (1Year) %||19.8||15,411||2,753|
* 1 year ago GBP 1 = USD 1.47
Jun 23, 2017: GBP 1 equals USD 1.27
4.2 Independent Ratings
RELX PLC is the 316th largest by revenue in the FT Global 500.
It is the 989th largest by revenue in the Forbes Global 2000.
It is placed 168/615 in BSS News Bites' ranking of United Kingdom performers in the past year, a percentile ranking of 73.
5.1 Financials Summary
|Year ended||Dec 2016||Dec 2015||Dec 2014|
|Sales (USD B)||6.9||6||9|
5.2 Trailing 12 Months Dividends
|Trailing 12 Months To||Value (GBX)|
|23 Jun 2017||10.25|
|23 Jun 2016||29.7|
|23 Jun 2015||26|
|23 Jun 2014||25.34|
|23 Jun 2013||25.56|
RELX PLC provides information solutions for professional customers across industries. The Company publishes information for the scientific, medical, legal, and business sectors.
6.2 Industry & Sector
|Classification Level||Name of Sector|
|Economic Sector||Consumer Cyclicals|
|Business Sector||Cyclical Consumer Services|
|Industry Group||Media & Publishing|
6.3 Top Management
The chairman is Anthony Habgood, the chief executive officer is Erik Engstrom and the chief financial officer is Nick Luff.
6.4 Issued Capital
Based on 1,077,835,183 issued shares the market capitalisation is GBP18.3 billion (US$23.2 billion).
7.1 Latest Buzz
|Jun 22, 2017||Investors are Watching Technical Levels on Shares of Relx PLC (REL.L)||Baxter Review||Jun 22, 2017||Relx Plc (RLXXF) Amongst Today\u0026#39; s Volume Leader||Nelson Research||Jun 22, 2017||Relx PLC (RELX) Seeing Increased Volatility in Session||Ozark Times|
|Jun 21, 2017||Technical Focus: What\u0026#39; s Happening With Shares of Relx PLC (REL.L)||Piedmont Register||Jun 21, 2017||Form 6-K RELX PLC For: Jun 21 Filed by: RELX NV||StreetInsider.com||Jun 21, 2017||Rock Point Advisors LLC Decreases Position in Relx NV (RENX)||The Cerbat Gem|
|Jun 20, 2017||Relx PLC (RELX) ATR Momentum Alert||Business Review||Jun 20, 2017||Active Stock on Watch: Relx PLC (RELX)||Davidson Register||Jun 20, 2017||Investor Guide: Checking in on Indicators for Relx PLC (REL.L)||Rives Journal||Jun 20, 2017||Relx PLC (REL.L) Needle Moving on Volume||SKV News|
|Jun 19, 2017||Relx PLC (REL.L) Price Above The Cloud: Shows Positive Momentum||Clayton News||Jun 19, 2017||Brokerages Set RELX PLC (RELX) PT at $23.00||Sports Perspectives|
7.2 Corporate Wire
To view Recent Company Headlines, click here
June 23: RELX: Transaction in Own Shares
June 21: RELX: Transaction in Own Shares
June 20: RELX: Additional Listing
June 19: RELX: Transaction in Own Shares
June 16: RELX: Transaction in Own Shares
Physical Address: Grand Buildings, 1-3 Strand, London, WC2N 5JR, United Kingdom
State/Province/Country: United Kingdom
Country of Incorporation: United Kingdom
Exchange: London Stock Exchange
L:REL; LON:REL; LN:REL; REL.L