RELX PLC PLC American Depositary Shares (Each representing One Ordinary Share) (RELX)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $2.2 billion in annual free cash flow (3.4% yield on market cap)
• High return on equity of 70.5% demonstrating efficient capital deployment
• Attractive 2.5% dividend yield providing steady income returns
• Established organization with 35,720 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($7) with negative 437% margin of safety—limited downside protection
• High leverage at 3.04x debt-to-equity increases financial risk and interest expense burden
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

RELX PLC PLC American Depositary Shares (Each representing One Ordinary Share) is a large-cap industrials company valued at $63.8 billion. Revenue stands at $9.6 billion. From a quality standpoint, RELX shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 2.8 in the grey zone. On valuation, the stock is reasonably priced at 23.8x earnings, with trades far above its Graham Number ($7) with no margin of safety. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $2.2 billion in annual free cash flow (3.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 3.0x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer