UK stock report - Reed Elsevier

UK

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.

SECTION 1

RELX BULLISH SIGNALS

1.1 Fundamentals:

+ 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%].

1.3 Technicals:

+ 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.

PV10001-week1-month1-year
REL.L9921,0361,388
FTSE 100 Index9959841,171

+ 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:

DescriptionValueRank In Market
Today's TurnoverGBP27.7 million (US$35 million)In Top 3%
Price/MAP501.04In Top Quartile
Return on Capital Employed [ROCE] %20.9In Top Quartile
Price/MAP2001.13In Top Quartile
Volatility %1.1In Top Quartile

SECTION 2

RELX BEARISH SIGNALS

2.1 Fundamentals:

+ 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%].

2.3 Technicals:

+ 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:

DescriptionValueRank In Market
Total Debt to Equity1.6In Bottom Quartile

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Moving Annual Return

RELClose (GBX)Dividends (GBX)Capital Gain %% YieldAnnual Return %
June 231,70110.2537.90.838.7
1 Yr ago1,233.9429.7192.921.9
2 Yrs ago1,036.92614.82.917.7
3 Yrs ago903.1925.3436.63.840.4
4 Yrs ago661.1425.5653.45.959.3

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.

SECTION 4

RANKING

4.1 Global Rank [out of 47,450 stocks] and Rank in the Europe Region [out of 8,291 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)23.2B602158
Total Assets (US$)13.3B2,148427
Revenue (US$)6.9B1,715376
Net Profit (US$)1.2B838176
Return on Equity %50.7602133
Net Profit Margin %17.06,6631,182
Price/Earnings38.417,1323,343
Yield %0.617,5373,022
PV$1000 (1Year) US$*1,19715,1612,695
US$* Change (1Year) %19.815,4112,753

* 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.

SECTION 5

RELX FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)6.969
Pretax (USD)1.5B1.3B767.5M
Net (USD)1.2B1B762.8M
EPS (USD)0.5580.4890.6694

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (GBX)
23 Jun 201710.25
23 Jun 201629.7
23 Jun 201526
23 Jun 201425.34
23 Jun 201325.56

SECTION 6

RELX PROFILE

6.1 Activities

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 LevelName of Sector
Economic SectorConsumer Cyclicals
Business SectorCyclical Consumer Services
Industry GroupMedia & 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).

SECTION 7

STOCK BUZZ

7.1 Latest Buzz

News DateHeadlinePublisher
Jun 22, 2017Investors are Watching Technical Levels on Shares of Relx PLC (REL.L)Baxter ReviewJun 22, 2017Relx Plc (RLXXF) Amongst Today\u0026#39; s Volume LeaderNelson ResearchJun 22, 2017Relx PLC (RELX) Seeing Increased Volatility in SessionOzark Times
Jun 21, 2017Technical Focus: What\u0026#39; s Happening With Shares of Relx PLC (REL.L)Piedmont RegisterJun 21, 2017Form 6-K RELX PLC For: Jun 21 Filed by: RELX NVStreetInsider.comJun 21, 2017Rock Point Advisors LLC Decreases Position in Relx NV (RENX)The Cerbat Gem
Jun 20, 2017Relx PLC (RELX) ATR Momentum AlertBusiness ReviewJun 20, 2017Active Stock on Watch: Relx PLC (RELX)Davidson RegisterJun 20, 2017Investor Guide: Checking in on Indicators for Relx PLC (REL.L)Rives JournalJun 20, 2017Relx PLC (REL.L) Needle Moving on VolumeSKV News
Jun 19, 2017Relx PLC (REL.L) Price Above The Cloud: Shows Positive MomentumClayton NewsJun 19, 2017Brokerages Set RELX PLC (RELX) PT at $23.00Sports 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

Contact: 44-20-79307077

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

ISIN: GB00B2B0DG97

L:REL; LON:REL; LN:REL; REL.L

PermID: 4295894769

Relx Plc

Source: www.BuySellSignals.com