Relx PLC
🇳🇱 REN.AS · Amsterdam · GB00B2B0DG97
Technology
EUR 29.06 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
25.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 29.06 ÷ 1.12 = 25.9
TTM period through: 2025-12-31
Forward P/E (estimated): 17.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 22.7
Yield (Fwd)
2.68%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.35%
Net Debt/EBITDA (TTM)
1.9x
Latest quarter: 3.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 3.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
69.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 57.2%
Cash Flow Payout (TTM): 41.1%
FCF Coverage (TTM): 2.42x
ROE
70.5%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
RELX is a global leader in information-based analytics with world-class competitive moats in essential B2B data across its scientific, legal, and risk divisions. While the company offers exceptional long-term fundamentals and a highly secure dividend backed by strong free cash flow, the current valuation at a P/E near 26 offers limited upside. Existing holders should maintain positions given the high business quality and consistent dividend growth, but new investors may want to wait for a more attractive entry point.
Sector Context
RELX operates as a global provider of information-based analytics and decision tools for professional and business customers, structured across risk, scientific/medical, legal, and exhibition segments. While categorized in the Technology sector—which conservative dividend investors typically avoid due to rapid obsolescence risk—RELX functions more like an essential B2B service provider with deep, monopolistic data moats and highly recurring subscription revenues.
Temporary Opportunity Identified
Market sentiment has experienced recent volatility driven by 'AI fears' potentially disrupting traditional data analytics and legal research, though RELX continues to post strong outlooks and execute aggressive share buybacks.
📊 Strategy Analysis
- • Exceptional competitive moat driven by proprietary, essential B2B data assets (LexisNexis, Elsevier) that generate highly recurring and predictable revenues.
- • Highly sustainable dividend backed by strong free cash flow generation, evidenced by a conservative cash flow payout ratio of 41.1%.
- • Proven track record of shareholder returns with 10 years of consistent dividend growth (7.7% CAGR) and no cuts.
- • Solid financial position with deleveraging progress, maintaining a healthy Net Debt/EBITDA of 1.93x.
⚠ What to Watch
- • Current valuation is highly stretched with a TTM P/E of 25.93, significantly exceeding the strategy's target maximum of 15x.
- • The trailing dividend yield of 2.35% falls short of the minimum 3% threshold required for this income-focused strategy.
- • Emerging market sentiment concerns regarding potential long-term AI disruption to traditional data and legal research models, even as the company heavily invests in its own AI capabilities.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.