UK stock report - Reed Elsevier

UK

RELX decreases 1.5% August 18, 2017 16:30 BST

NEWS BITES - EUROPE

RELX PLC (L:REL), the 2nd largest Media company by market cap in the United Kingdom, has decreased GBX25.0 (1.5%) from its last trading session of August 17 to close at GBX1,670.0. Compared with the FTSE 100 Index which fell 63.9 points (0.9%) in the day, the relative price change was -0.6%. The volume was 0.6 times the average daily trading volume of 3 million shares.

SECTION 1

RELX BEARISH SIGNALS

1.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 0.7%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 4.0% is 17.7%. 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.

1.2 Overvaluation [compared with sector average]:

+ Price/Sales of 3.3 [2.2].

+ Dividend yield of 0.7% [2.7%].

1.3 Technicals:

Downtrend: The stock dropped 1.5% on high volatility today.

1.4 Overbought/Bearish/Resistance Signals:

+ The Stochastic indicator of 84.3 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

1.5 Low Performance Indicators:

DescriptionValueRank In Market
Price Change %-1.5In Bottom Quartile
Total Debt to Equity2.1In Bottom 6%

SECTION 2

RELX BULLISH SIGNALS

2.1 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.

+ Economic Value Added defined by Net Operating Profit After Tax of $US1.4 billion less Cost of Capital of $US269.7 million was $US1.2 billion. The multiple EVA/Cost of Capital was exemplary at 4.3 times.

+ 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.

2.2 Undervaluation [compared with sector average]:

+ Return on Assets 8.8% [2.3%].

+ Return on Capital Employed 20.9% [5.3%].

2.3 Technicals:

+ The price increased 0.9% in the last week and lifted 3.3% in the last month.

+ The 2.7% discount to 12-month high of GBX1,715.79 against the 32.1% premium to 12-month low of GBX1,264.01 suggests the stock continues to push for new highs.

+ In the last three months the stock has hit a new 52-week high eight times, pointing to a significant uptrend.

+ The present value of GBP1,000 (PV1000) invested one year ago in RELX is GBP1,165, comprising a capital gain of GBP157 and dividend reinvested of GBP8.

PV10001-week1-month1-year
REL.L1,0091,0401,165
FTSE 100 Index1,0029841,066

+ The present value of GBP1,000 (PV1000) invested twenty years ago in RELX is GBP4,693, including a capital gain of GBP3,086 and dividend reinvested of GBP607.

+ 20 years Multiplier in GBP = 4.693x

+ Compound Annual Growth Rate (CAGR) in GBP = 8.0%

Aug 18, 2017: GBP 1 equals USD 1.29

2.4 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverGBP32.4 million (US$41.7 million)In Top 3%
Return on Capital Employed [ROCE] %20.9In Top Quartile
Price/MAP2001.09In Top Quartile
Volatility %1.2In Top Quartile
Price/MAP501.01In Top Quartile

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Moving Annual Return

RELClose (GBX)Dividends (GBX)Capital Gain %% YieldAnnual Return %
August 181,67011.715.70.816.5
1 Yr ago1,443.7332.5537.63.140.7
2 Yrs ago1,04926.415.42.918.4
3 Yrs ago908.6624.9523.33.426.7
4 Yrs ago737.1226.2843.15.148.2

3.2 Beta & Alpha:

+ Beta: the Beta of RELX stock is 0.9. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

+ Alpha: the Alpha of the stock is 8.4. The actual return of 13.54% exceeded the expected return of 5.2%, reflecting outperformance.

3.3 Aggregate Volumes, Prices and Turnover Period:

[Volume Index or VI in brackets; 1 is average]

+ London: REL.L 1,939,829 [VI of 0.6] volume 50.77% of aggregate. Price: GBX1,670.0.

+ Amsterdam: REN.AE 1,880,000 [VI of 0.8] volume 49.2% of aggregate. Price: EUR17.63. Using the current exchange rate of EUR1 equals 91.02GBX, The shares are at a 3.9% discount to the close price on London.

+ Aggregate volume: there were 3.8 million shares of RELX worth GBP62.6 million traded today. The aggregate volume was 0.7 times average trading of 5.3 million shares.

SECTION 4

RANKING

4.1 Global Rank [out of 47,594 stocks] and Rank in the Europe Region [out of 8,387 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)23B622168
Total Assets (US$)13.3B2,206455
Revenue (US$)6.9B1,747393
Net Profit (US$)1.2B869193
Return on Equity %50.7606130
Net Profit Margin %17.06,7331,216
Yield %0.717,8103,100
PV$1000 (1Year) US$*1,15315,5143,290
US$* Change (1Year) %16.915,1113,213

* 1 year ago GBP 1 = USD 1.3

Aug 18, 2017: GBP 1 equals USD 1.29

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 590/1238 in BSS News Bites' ranking of United Kingdom performers in the past year, a percentile ranking of 53.

SECTION 5

RELX FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)6.969
Pretax (USD)1.5B1.3B767.7M
Net (USD)1.2B1B763M

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (GBX)
18 Aug 201711.7
18 Aug 201632.55
18 Aug 201526.4
18 Aug 201424.95
18 Aug 201326.28

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
Business SectorCyclical Consumer Services
Industry GroupMedia & Publishing
Economic SectorConsumer Cyclicals

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 1,067,989,766 issued shares the market capitalisation is GBP17.8 billion (US$23 billion).

SECTION 7

STOCK BUZZ

7.1 Latest Buzz

News DateHeadlinePublisher
Aug 17, 2017Can Relx PLC (REL.L) Move Higher? Trends Indicate Positive MovementBVN
Aug 17, 2017Chartists Placing Relx PLC (REL.L) on Their RadarClayton News
Aug 17, 2017RELX PLC (LSE:REL) in Focus: A look at EBITDA \u0026amp; ValuationOzark Times
Aug 17, 2017RELX PLC (RELX) Downgraded by Zacks Investment Research to SellRincon Hill News
Aug 17, 2017Relx PLC (REL.L) Needle Moving on VolumeRockville Register
Aug 17, 2017RELX PLC (LSE:REL) Profitability in FocusTrion Journal
Aug 17, 2017Relx PLC (REL.L) and Cobham PLC (COB.L) Seeing Needle Moving This SessionUnion Trade Journal
Aug 16, 2017Taking a Deeper Look into the Moving Average For Relx PLC (REL.L)Concord Register
Aug 16, 2017RELX NV American Depositary S (NYSE:RENX) Experiences Lighter than Usual..Modern Readers
Aug 15, 2017Market Risers: Old Mutual plc, Pearson plc, Relx PLCDirectorsTalk Interviews
Aug 15, 2017Volume Moving the Tape For Relx PLC (REL.L)Evergreen Caller
Aug 15, 2017Active Stock on Watch: Relx PLC (REL.L)Lenox Ledger
Aug 15, 2017Stock Concentration on Relx PLC (REL.L) SharesThe Standard
Aug 14, 2017Relx Plc (NYSE:RELX) Downgraded to Sell at Zacks Investment ResearchBNB Daily (blog)
Aug 14, 2017Checking in on Relx PLC (RELX)\u0026#39; s SignalsBaxter Review
Aug 14, 2017Relx PLC (REL.L) Needle Moving 0.10%Financial Newsweek
Aug 14, 2017Head-To-Head Analysis: RELX PLC (RELX) vs. John Wiley \u0026amp; Sons (JW.A)Sports Perspectives

7.2 Corporate Wire

To view Recent Company Headlines, click here

August 16: RELX: Transaction in Own Shares

RELX PLC announces that today it purchased through J.P. Morgan Securities plc 52,600 RELX PLC ordinary shares of 14 51/116 pence each on the London Stock Exchange at a price of 1688.2646 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, RELX PLC holds 78,370,339 ordinary shares in treasury, and has 1,067,488,542 ordinary shares in issue (excluding treasury shares).

August 14: RELX: Transaction in Own Shares

RELX PLC announces that today it purchased through J.P. Morgan Securities plc 52,985 RELX PLC ordinary shares of 14 51/116 pence each on the London Stock Exchange at a price of 1656.5466 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, RELX PLC holds 78,264,639 ordinary shares in treasury, and has 1,067,573,997 ordinary shares in issue (excluding treasury shares).

August 11: RELX: Transaction in Own Shares

RELX PLC announces that today it purchased through J.P. Morgan Securities plc 52,700 RELX PLC ordinary shares of 14 51/116 pence each on the London Stock Exchange at a price of 1658.8464 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, RELX PLC holds 78,211,654 ordinary shares in treasury, and has 1,067,624,699 ordinary shares in issue (excluding treasury shares).

August 09: RELX: Transaction in Own Shares

RELX PLC announces that today it purchased through J.P. Morgan Securities plc 52,500 RELX PLC ordinary shares of 14 51/116 pence each on the London Stock Exchange at a price of 1668.2568 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, RELX PLC holds 78,106,554 ordinary shares in treasury, and has 1,067,717,011 ordinary shares in issue (excluding treasury shares).

August 07: RELX: Transaction in Own Shares

RELX PLC announces that today it purchased through J.P. Morgan Securities plc 52,300 RELX PLC ordinary shares of 14 51/116 pence each on the London Stock Exchange at a price of 1676.5341 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, RELX PLC holds 78,001,654 ordinary shares in treasury, and has 1,067,797,575 ordinary shares in issue (excluding treasury 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