Wide-moat RELX’s first-quarter trading update indicated initial performance in fiscal 2024 is tracking in line with guidance and our expectations. Shares are trading flat intraday. We don’t expect to make a material change to our GBX 3,650 fair value estimate. At current levels, the shares look undervalued.
The shift to focusing on analytics and decision tools has boosted RELX’s organic growth profile.
While RELX is the number-two player in the concentrated US legal information market, the legal segment still has materially lower margins than its other segments.
|
Metric
|
REL
|
TRI
|
WKL
|
|---|---|---|---|
Price/Earnings (Normalized) | 28.32 | 43.72 | 32.27 |
Price/Book Value | 17.84 | 6.31 | 19.47 |
Price/Sales | 6.81 | 10.42 | 6.24 |
Price/Cash Flow | 24.27 | 37.87 | 24.06 |
|
Metric
|
REL
|
TRI
|
WKL
|
|---|---|---|---|
Quick Ratio | 0.45 | 0.76 | 0.70 |
Current Ratio | 0.52 | 0.90 | 0.73 |
Interest Coverage | 8.62 | 9.03 | 49.04 |
|
Metric
|
REL
|
TRI
|
WKL
|
|---|---|---|---|
Return on Assets (Normalized) | 14.24% | 8.01% | 11.23% |
Return on Equity (Normalized) | 61.55% | 14.14% | 51.30% |
Return on Invested Capital (Normalized) | 23.47% | 10.90% | 18.66% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
RELX
| RELX PLC ADR | Bcdjlydghs | Mytx | $77.0 Bil | |
RLXXF
| RELX PLC | — | Ryy | $76.5 Bil | |
TRI
| Thomson Reuters Corp | Gvmgsxch | Skfqkwk | $68.5 Bil | |
CTAS
| Cintas Corp | Rptsyndxq | Nqjy | $67.5 Bil | |
CPRT
| Copart Inc | Xyrgrcq | Msqft | $51.1 Bil | |
WOLTF
| Wolters Kluwer NV | — | Vzwwr | $36.1 Bil | |
WTKWY
| Wolters Kluwer NV ADR | Jgnqwkhs | Jsxhv | $35.6 Bil | |
GPN
| Global Payments Inc | Zgqffmybw | Zbnvmy | $31.8 Bil | |
RBA
| RB Global Inc | Cvhptlfc | Zzmcwlh | $13.4 Bil | |
RTO
| Rentokil Initial PLC ADR | Trqtqkwf | Wzc | $13.1 Bil |
