RELX (REL:GBX1,906.0) decreases 22 June 2020

NEWS BITES - EUROPE

Dateline: Monday June 22, 2020

RELX PLC (L:REL), the largest Media company by market cap in the United Kingdom, has decreased GBX9.0 (0.5%) from its previous trading session to close at GBX1,906.0. Compared with the FTSE 100 Index which fell 48.0 points (0.8%) in the day, the relative price increase was 0.3%. The volume was 0.4 times the average daily trading volume of 4.5 million shares. There were 1,991,615 shares worth GBP38 million (US$47 million) traded today. Today the stock traded between its three-day high of GBX1,936.50 and four-day low of GBX1,883.50.

Stock Summary (traded in GBP)

Currency1 GBP = 1.24 USD Dividend Yield2.4%
Jun 22 closeGBX1,906.0SectorMedia
Ave Daily Volume4,455,744 sharesShares Outstanding1,931,382,909
52-Week Range1,368.99 - 2,071.90Market CapGBP36.8 billion [USD45.6 billion]
P/E24.6EPS Growth (FY2019 vs FY2018)7.6%

ADR Summary (traded in USD)

Home ExchangeUnited KingdomRatio1 ADR equals 1 ordinary share
CodeRELXTypeSponsored
ISINUS7595301083Jun 19 closeUSD23.50
CUSIP759530108Ave Daily Volume567,694 ADRs
*No. Held by Institutions59,657,92152-Week Range16.49 - 26.74
% of shares outstanding3.1%

Primary Exchange and Other Listings: Trading Currency and Volume (Excl ADR)

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
LondonRELGBX1,9064,467,38147.90.4
AmsterdamRENEUR21.142,004,80852.11.1
Total100.00

1 GBX [Pence Sterling]= 90.4046 EUR;

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

Financials Summary: EPS up 7.6% to 77.40 GBX in FY2019

+ Net profit was up 5.8% from USD1.8 billion in FY2018 to USD1.9 billion in FY2019.

+ Earnings Per Share (EPS) was up 7.6% from 71.90 GBX in FY2018 to 77.40 GBX in FY2019.

Year ended DecFY2019FY2018FY2017
Sales (USD B)9.89.39.1
Pretax (USD B)2.32.12.1
Net (USD B)1.91.82.1
EPS (GBP)0.7740.7190.816

Click here to export Financials table in xls

INDEX

SECTION 1 News In The Past Quarter

SECTION 2 Corporate Profile and Independent Ratings

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

Click here to view the following

SECTION 7 Dividend

SECTION 8 Financials FY 2019

SECTION 9 Peer Group Analysis & Ranking

SECTION 10 News Archives (Jun 2019 - Mar 2020)

Glossary

SECTION 1 News In The Past Quarter

1.1 Financial News

Annual Report (FY 2019):

February 13, 2020

FY2019 Annual Report: RELX Net Profit up 5.8%

RELX (L:REL) reported net profit for the year-ended 31 December 2019 [FY2019] of GBP1.5b ($US2.0b), up 5.8% from GBP1.4b ($US1.8b) in the previous year [FY2018]. Earnings per share (EPS) were up 7.6% from GBX72.0 (US91.34c) in FY2018 to GBX77.0 ($US1.01) in FY2019.

Read more in SECTION 8 on Financials

1.2 Share Buybacks

April 21: RELX buys back 71,000 shares

RELX (REL.L) announced a buyback of 71,000 shares worth GBP1,308,525 (or $US1,622,440) on April 21, 2020. The buyback price was GBX1,842.99.

April 20: RELX buys back 71,000 shares

RELX (REL.L) announced a buyback of 71,000 shares worth GBP1,315,408 (or $US1,640,971) on April 20, 2020. The buyback price was GBX1,852.69.

April 17: RELX buys back 75,000 shares

RELX (REL.L) announced a buyback of 75,000 shares worth GBP1,384,471 (or $US1,730,450) on April 17, 2020. The buyback price was GBX1,845.96.

April 16: RELX buys back 61,000 shares

RELX (REL.L) announced a buyback of 61,000 shares worth GBP1,074,529 (or $US1,340,045) on April 16, 2019. The buyback price was GBX1,761.52.

April 14: RELX buys back 60,000 shares

RELX (REL.L) announced a buyback of 60,000 shares worth GBP1,063,919 (or $US1,336,175) on April 14, 2020. The buyback price was GBX1,773.20.

April 09: RELX buys back 61,500 shares

RELX (REL.L) announced a buyback of 61,500 shares worth GBP1,074,265 (or $US1,323,280) on April 09, 2020. The buyback price was GBX1,746.77.

April 09: RELX buys back 60,000 shares

RELX (REL.L) announced a buyback of 60,000 shares worth GBP1,029,933 (or $US1,268,671) on April 09, 2020. The buyback price was GBX1,716.56.

April 03: RELX buys back 65,000 shares

RELX (REL.L) announced a buyback of 65,000 shares worth GBP1,083,286 (or $US1,334,391) on April 03, 2020. The buyback price was GBX1,666.59.

April 03: RELX buys back 63,500 shares

RELX (REL.L) announced a buyback of 63,500 shares worth GBP1,038,085 (or $US1,286,706) on April 02, 2020. The buyback price was GBX1,634.78.

March 26: RELX buys back 64,000 shares

RELX (REL.L) announced a buyback of 64,000 shares worth GBP1,092,310 (or $US1,295,698) on March 26, 2020. The buyback price was GBX1,706.73.

1.3 Share Capital

June 01: RELX decreases issued capital

RELX (REL.L)

April 01: RELX: Total Voting Rights

As at 1 April 2020, RELX PLC's capital consists of 1,981,289,392 ordinary shares of 14 51/116 pence each. RELX PLC holds 49,242,480 ordinary shares in Treasury.

Therefore, the total number of voting rights in RELX PLC is 1,932,046,912 and this figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interest in, or a change to their interest in RELX PLC under the FCA's Disclosure and Transparency Rules.

Source: London Stock Exchange

1.4 Meetings

May 26: RELX: Result of General Meeting

RELX PLC (the 'Company') announces that at a General Meeting of the Company held earlier today, resolution 1, as set out in the Notice of General Meeting dated 23 April 2020, was duly passed.

All valid proxy votes (whether submitted electronically or in hard copy form) were included in the poll taken at the meeting.

Source: London Stock Exchange

April 08: RELX: Update on 2020 Annual General Meeting

On 5 March 2020, RELX PLC ("RELX" or the "Company") posted notice of its 2020 Annual General Meeting ("AGM") to be held at 10.00am on Thursday 23 April 2020.

As a result of the ongoing spread of the COVID-19 virus within the United Kingdom, and in particular the imposition of mandatory measures by the UK Government related to social distancing and the prohibition of public gatherings of more than two people, we today announce changes to the format of the AGM.

The original planned venue for the AGM is now closed. Shareholders should not attempt to attend the AGM in person. The AGM will be convened with the minimum quorum of two shareholders necessary to conduct the business of the meeting. The attendance of these two shareholders will be facilitated by RELX.

Source: London Stock Exchange

1.5 Press Releases

April 08: RELX: Trading Statement

In our three largest business areas, Scientific, Technical & Medical, Risk & Business Analytics, and Legal, which together accounted for 84% of revenue and 87% of adjusted operating profit in 2019, the rate of underlying revenue growth in the first quarter of 2020 was slightly higher than in the same period of the prior year. These business areas saw only a limited impact from COVID-19 in the first quarter, although the full year outcome may be affected by changes in the evolving economic environment and by activity levels in our customer markets.

Source: London Stock Exchange

1.6 People's News

Fri Apr 24, 2020

Anthony Habgood's performance as Chairman of RELX (L:REL) is ranked in the top 17% of BuySellSignals performers for the past one year; a percentile ranking of 84.0. In the last 1 year the average annualized return to shareholders was 9.6%. The 1-year average return is ranked 6,747 out of 42,113 public companies traded globally. The present value of US$1,000 (PV1000) invested 1 year ago is now worth US$1,096; a capital gain of US$53 and dividend reinvested of US$43.

SECTION 2 Corporate Profile and Independent Ratings

2.1 Activities

RELX PLC provides information solutions for professional customers across industries. The Company publishes information for the scientific, medical, legal, and business sectors.

2.2 Contact Details

Websitehttp://www.reedelsevier.com
Physical AddressGrand Buildings, 1-3 Strand, London, WC2N 5JR, United Kingdom
Phone44-20-79307077
Fax44-20-71665799

2.3 Industry & Sector

Classification LevelName of Sector
Economic SectorConsumer Cyclicals
Business SectorCyclical Consumer Services
Industry GroupMedia & Publishing

2.4 Independent Ratings

+ FT 500:

RELX PLC is the 316th largest by revenue in the FT Global 500.

+ Forbes 2000:

It is the 989th largest by revenue in the Forbes Global 2000.

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 4.4% Past Week

The price ranged between a low of 1,831.5 on Monday, Jun 15 and a high of 1,915.0 on Friday, Jun 19.

DayRELXClose price [GBX]Price change %Relative change %Comment
FridayRises 1.6% on high volatility1,915.01.60.5VI*=1.5
ThursdayDecreases1,884.5-0.7-0.2Steepest Fall
WednesdayIncreases1,898.00.80.7Price/MAP50 above 1 and rising
TuesdayLifts 2.8% - at bullish turning point1,882.52.8-0.2Top Rise
MondayDrops to one-month low1,831.5-0.1-0.1Week-low of 1,831.5

[Volume Index (VI); 1 is average]

3.2 Momentum Up 0.7% Past Month

In the past quarter the week beginning Monday May 18 saw the highest weekly rise of 5.5% for a relative price increase of 2%.

The Best 3 weeks in the past quarter:

Mon-FriChange %FTSE 100 index Change %RPC %Vol Ind [1 is avg]
May 18-225.53.421.1
Jun 15-194.43.11.40.8
Apr 27-May 013.50.13.41

3.3 Rank in the top 19% by Relative Valuation in the United Kingdom market

DescriptionValueRank
EV/EBITDA20.0In Top 19%

3.4 Uptrend

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 1,885.78 minus the 26-day EMA of 1,872.12 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

Relative Strength (6 months) 77 percentile:

- The stock has a 6-month relative strength of 77 in the United Kingdom market of 502 stocks and 70 units indicating it has outperformed 77% of the market.

3.5 Undervaluation

Price/Earnings of 24.6 < sector avg of 28.2:

- Price/Earnings of 24.6 versus sector average of 28.2.

Dividend Yield > Bond Yield of 0.23%:

The dividend yield of 2.4% is 10.43 times the triple-A bond yield of 0.23%. The times factor of 10.43 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield2.4
Bond Yield0.23
Spread2.17

3.6 Other Bullish Signals

- Return on Assets of 10.9% versus sector average of 4.4% and market average of 1.0%.

- Return on Capital Employed of 27.6% versus sector average of 8.7% and market average of 2.8%.

- Interest cover defined by EBIT/I is 6.9 times. This indicates it is less leveraged.

- Net profit margin has averaged 20.3% in the last 3 years. This is considered superior and suggests a high margin of safety.

SECTION 4 Ongoing Bullish Parameters

4.1 Rank in the top 5% by Size in the United Kingdom market

DescriptionValueRank
Ave daily TurnoverGBP38 million (US$47 million)In Top 2%
MCapUSD45.6 billionIn Top 3%
Annual RevenueGBP7.9 billion (US$9.8 billion)In Top 5%

4.2 Rank in the top 21% by Productivity in the United Kingdom market

DescriptionValueRank
Return on Capital Employed [ROCE] %27.6In Top 6%
Return on Assets [ROA] %10.9In Top 21%

4.3 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 8.8%

TSR %3 yrs5 yrs10 yrs20 yrs
REL.L8.917.619.29.2

4.4 Present Value of GBP1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVGBP1000 > 1,031

PVGBP1,0003 mo ago1 yr ago3 yrs ago
REL.LGBP1,313GBP1,032GBP1,294
Media sectorGBP1,297GBP897GBP625
FTSE 100 IndexGBP1,203GBP843GBP839

4.5 The Best Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % > 0.6

3-Year price change of 19.9% for RELX outperformed the change of -16.1% in the FTSE 100 index for a relative price change of 36%.

Price Change %QuarterYear3 Years
RELX290.719.9
Media sector29.6-10.3-37.7
FTSE 100 index20.3-15.7-16.1

4.6 Moving Annual Return of 3.1% in the past year:

Moving Annual Return was 3.1% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 18.6%. The Moving Annual Return has been positive in 4 of the last 5 years.

RELClose (GBX)Dividends (GBX)Capital Gain / (Loss) %% YieldAnnual Return %
Jun 221,90645.70.72.43.1
1 Yr ago1,893.142.124.12.826.9
2 Yrs ago1,525.4639.4(4.1)2.5(1.6)
3 Yrs ago1,590.1610.2543.20.944.1
4 Yrs ago1,110.4329.717.43.120.6

Close 5 years ago GBX945.47

4.7 MCap: 5-Year Increase of GBP25 billion [USD309 million]

In the past 5 years Market Capitalization has increased by GBP25 billion (211%) from GBP11.8 billion to GBP36.8 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 3 out of 5 years.

PriceMCap (GBP B)MCap (US$ B)
LastGBX1,906.036.845.6
1 Year agoGBX1,893.1037.948.1
2 Years agoGBX1,525.4616.922.4
3 Years agoGBX1,590.1618.523.4
4 Years agoGBX1,110.4313.318.8
5 Years agoGBX945.4711.818.8

4.8 Created Market Value [CMV] past 4 yrs of GBP22.8 billion (US$28.2 billion)

- Market Capitalization has increased by GBP23.5 billion from GBP13.3 billion to GBP36.8 billion in the last 4 years. This increase comprises cumulative retained earnings (RETE) of GBP706 million and Created Market Value of GBP22.8 billion. The Created Market Value multiple, defined by the change in MCap for every GBP1 of retained earnings is exemplary at GBP33.23.

4.9 EPS growth [FY2019 vs FY2018] of 7.6%:

There have been three rises and two declines in the past 5 years. Average Annual Compounded rate of growth in EPS for the 5 years was impressive at 12.5%.

FYEPS ( GBX)Growth %
201977.47.6
201871.9-11.9
201781.644.9
201656.370.7
201532.97-23.4

4.10 Improved EBIT Margins:

EBIT margin is positive and has increased from 25.9% to 27.4% in the past year.

FYEBIT Margins (%)
201927.4
201825.9
201726.2
201624.3
201537.0

4.11 Safe Interest Cover

Interest cover of 6.9 is above a safe benchmark figure of 3. However, it has decreased in the past two years.

YearsInterest cover
20196.88
20188.93
20179.4
20168.26
201512.48

4.12 Increased Volume, up 52% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 51.6% to 4.5 million shares.

Avg. Daily Volume Traded 12 months ended Jun 22, million shares

YearADVT
20204.5
20195.3
20183.5
20173.1
20162.9

4.13 Increased VWAP, up 73% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 73.0% to GBX1,819.93. Based on a dynamic start date of five years ago, there has been no decline in VWAP over the last 5 years.

Past five years, 12 months ended Jun 22 (GBX)

YearHigh PriceVWAPLow Price
20202071.91819.931368.99
20191913.11589.941406.52
20181667.851504.981307.92
20171604.081366.741104.9
20161196.921052.27581.5

4.14 Increased share turnover, up 152% in 5 years

In the past five years, average daily share turnover has increased 151.5% to GBP78.1 million (US$96.7 million). This suggests increased liquidity.

Past five years, 12 months ended Jun 22 (GBP million)

YearAverage Daily Turnover
202078.1
201984.3
201852.7
201742.9
201631.1

4.15 Increase in Institutional Ownership up from 2.7% to 3.1% (ADRs)

As at March 31, 2020 Institutions held 3.1% of total ADRs on issue; an increase from 3.0% as at December 31, 2019 and 2.7% as at March 31, 2019.

Quarter-endMarch 31, 2019December 31, 2019March 31, 2020
Holdings (%)2.73.03.1

4.16 Revenue, EPS, and EBITDA:

5-years average annualized earnings growth rate of 12.5%

- Revenue growth and EBITDA growth are positive and have seen consecutive rises in recent years. [compared with previous year, all figures in %]

FYRevenue GrowthEPS GrowthEBITDA Growth
20195812
20182-121

4.17 Satisfies four criteria of Benjamin Graham

- "An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 4.1% is 17.4 times the triple-A bond yield of 0.2%.

- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 10.3 times the triple-A bond yield of 0.2%.

-"Earnings growth over the most recent ten years of 7% compounded - that is a doubling of earnings in a five-year period"; the earnings per share have more than doubled in the last 5 years.

-"Stability of growth in earnings over the last 5 years, defined as no more than two declines of 5% or greater in year-end earnings";there have been 2 declines in earnings in the last 5 years.

4.18 Satisfies 7 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Return on Assets improvement [from 10.2% to 10.9%].

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in long-term debt to total assets from 0.4 to 0.3.

- Reduction in total shares on issue.

- Improvement in gross margin [from 64.7% to 65%].

4.19 Year-over-year (%) Change in Dividend:

Final dividend for FY 2019 was GBP32.10. The year-on-year change was up 8.1% from GBP29.70 in the previous year FY 2018.

FinalFY 2018FY 2019
Dividend (GBX)29.732.1

SECTION 5 Today's Bearish Signals

5.1 Rank in the bottom 21% by Price Performance in the United Kingdom market

DescriptionValueRank
% Prem to Vol Wtd Price0.9In Bottom 21%

5.2 Downtrend

Today's Volatility:

Today its volatility (highest price minus lowest price/lowest price) of 2.8% was 1.2 times the average daily volatility of 2.3%, up from 2.8% on Friday and 1.8% on Thursday. A fall in the price on high volatility is a bearish signal.

5.3 Overvaluation

Earnings Yield of 4.1% < United Kingdom ave of 9.4% > Bond Yield of 0.2%:

- Earnings yield of 4.1% is less than the United Kingdom average earning yield of 9.4%.

- The earnings yield of 4.1% is 17.4 times the 10-year bond yield of 0.2%.

(All figures in %)

Earnings Yield4.1
United Kingdom avg9.4
Dividend Yield2.4
Bond Yield0.2

Dividend Yield of 2.4% < Index avg of 5.2%:

- The relative yield of the stock, defined by its yield of 2.4%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 5.2% is 46.1%. This suggests the stock is overvalued in dividend yield terms.

Price/Sales of 4.7 > sector avg of 3.1:

- Price/Sales of 4.7 versus sector average of 3.1 and market average of 0.7.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 2.7. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

5.4 Other Bearish Signals

- Total Liabilities/EBITDA of 5.4 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

SECTION 6 Ongoing Bearish Parameters

6.1 Rank in the bottom 2% by Gearing in the United Kingdom market

DescriptionValueRank
Total Debt to Equity2.9In Bottom 2%

6.2 Rank in the bottom 16% by Growth in the United Kingdom market

DescriptionValueRank
EPS Growth %7.6In Bottom 16%

6.3 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Period with TSR < 3.3%

TSR %1 yr
REL.L3.2

6.4 Total Shares on Issue: 5-Year Increase of 70.5%

In the past 5 years total shares on issue have increased by 803.3 million (70.5%) from 1.1 billion to 1.9 billion. Buybacks have averaged 28.1 million shares [2.5%] per financial year. Based on a dynamic start date of 5 years ago, there have been declines in issued capital in 4 out of 5 years. An increase in total shares on issue is an unfavourable indicator in Joseph Piotroski's 9 indicators.

Year End (Dec 31)Total Shares on Issue
20191,943,500,000
20181,977,200,000
20172,019,400,000
20162,062,300,000
20152,079,800,000
20141,140,200,000

6.5 High Debt to Equity (%) and Increasing

The debt to equity ratio of 292.9% is above a safe benchmark figure of 70%. Moreover, it has deteriorated in the past four years.

YearsDebt to Equity (%)
Dec 2019292.88
Dec 2018269.82
Dec 2017227.11
Dec 2016208.75
Dec 2015182.0

Glossary

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabiliites (times)

Debt/Equity: Net Debt/Net Assets %

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Interest Cover: Earnings Before Interest and Tax/Interest (times)

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/Sales: Share Price/Sales Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

Total Liabilities/Total Assets: Total Liabilities/Total Assets

Turnover Rate: value of annual trading volume as a percentage of market capitalisation

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Created by www.buysellsignals.com