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1. Company Snapshot

1.a. Company Description

RELX PLC provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally.It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions.The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk.


The Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals to progress in science and advance healthcare.The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity.The Exhibitions segment is involved in the events business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions.


The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015.The company was incorporated in 1903 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on REL

RELX PLC faced challenges due to persistent competition in the sector, which tempered enthusiasm for its technological advances and data assets. Despite recent recognitions for its LexisNexis Risk Solutions, including awards for fraud and financial crime prevention innovation, the company's growth prospects are being closely scrutinized by analysts. The latest earnings release was not available, but a slight upward adjustment in the consensus analyst price target to £44.18 per share (Source: Analyst Moves) reflects cautious optimism. No information on share buybacks was found.

1.c. Company Highlights

2. Strong Financial Performance with Revenue Growth and Expanding Margins

The company delivered a robust financial performance in 2025, with underlying revenue growth of 7%, underlying adjusted operating profit growth of 9%, and adjusted earnings per share growth of 10% at constant currency. The adjusted operating margin improved by just under 1 percentage point to 34.8%. The strong operating result flowed through to adjusted earnings per share, which at constant currency increased by 10% to 0.649, significantly beating estimates of 0.4262. Cash conversion was again strong at 99%. The company's revenue growth and margin expansion were driven by its strategic direction, with a continued shift in business mix towards higher growth analytics and decision tools, supported by the evolution of artificial intelligence.

Publication Date: Feb -13

📋 Highlights
  • Strong Financial Performance: Underlying revenue grew 7%, adjusted operating profit rose 9%, and adjusted EPS increased 10% at constant currency in 2025.
  • Risk Business Expansion: Risk accounts for 40% of group profits, growing 8% in revenue and 10% in profit annually, driven by AI and machine learning tools.
  • Legal Division Growth: Lexis+ AI’s enterprise subscription base doubled in a year, with workflows launched at 2-3 per day and strong renewals across all segments.
  • STM Momentum: Submissions surged over 20%, and publications grew 10% in 2025, reflecting sustained global demand for scientific research and publishing.
  • Operational Efficiency: Cash conversion hit 99%, net debt stood at GBP 7.2 billion, and GBP 1.5 billion in share buybacks were completed, reflecting disciplined capital allocation.

Business Segment Performance

All four business areas continue to perform well, with the Risk business growing revenue by 8% and profit by 10%. The STM business had strong growth in submissions, over 20%, and the number of articles published, over 10%. The Legal business saw robust new sales across all three segments, with the Lexis+ AI enterprise-wide subscription customer base more than doubling in the past year. The Exhibitions business is expected to sustain strong long-term growth.

Valuation and Growth Expectations

Analysts estimate revenue growth at 6.1% for the next year. The company's current valuation metrics include a P/E Ratio of 20.45, P/B Ratio of 18.06, and EV/EBITDA of 13.43. The Dividend Yield is 3.03%, and the Free Cash Flow Yield is 7.19%. The company's ROIC is 21.46%, and ROE is 68.01%. With a Net Debt / EBITDA ratio of 2.15, the company's leverage is manageable. As Erik Engstrom noted, the company's content-enabled workflow tools differentiate them from other tools used by lawyers and professionals, and the adoption of these tools is driving growth.

Growth Drivers and Opportunities

The company's growth is driven by its strategic direction, with a focus on analytics and decision tools, and the evolution of artificial intelligence. The STM business is seeing strong growth in submissions and publications, driven by the increasing information intensity of science. The Legal business is seeing robust new sales, driven by the adoption of Lexis+ AI. The Risk business is benefiting from the increasing demand for sophisticated risk analysis, driven by the evolution of autonomous driving and other new technologies.

Conclusion on Valuation

Given the company's strong financial performance, growth drivers, and valuation metrics, the stock appears to be reasonably valued. The P/E Ratio of 20.45 is slightly high, but the company's growth prospects and dividend yield provide support. The EV/EBITDA ratio of 13.43 is reasonable, considering the company's growth prospects and leverage. Overall, the company's strong financial performance and growth drivers make it an attractive investment opportunity.

3. NewsRoom

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LexisNexis Risk Solutions Receives Two Recognitions at Regulation Asia Awards for Excellence 2025 for Fraud and Financial Crime Prevention Innovation

Nov -12

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New Medical Insights from LexisNexis Health Intelligence Helps Life Insurers Expand Accelerated Programs, Mitigate Mortality Slippage and Improve Customer Experience

Nov -11

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How Recent Analyst Moves Are Rewriting the Story for RELX

Nov -07

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LexisNexis® Risk Solutions Launches APAC Data Centre in Malaysia to Enhance Fraud Prevention

Nov -05

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How the Story Behind RELX Is Evolving Amid Analyst Optimism and Sector Caution

Oct -23

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LexisNexis U.S. Home Insurance Trends Report Highlights Rising Peril Severity as Catastrophic Claims Hit Seven-Year High

Oct -23

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TRADING UPDATE – October 2025

Oct -23

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How the Narrative Around RELX Is Evolving Amid Analyst Updates and Market Shifts

Oct -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.92%)

6. Segments

Risk

Expected Growth: 7.3%

RELX Plc's Risk segment growth is driven by increasing need for identity verification and compliance, fueled by growing adoption of digital technologies and rising cybersecurity threats.

Scientific, Technical & Medical

Expected Growth: 5.5%

RELX Plc's Scientific, Technical & Medical segment is driven by increasing demand for digital solutions, growth in research and development expenditure, and rising adoption of artificial intelligence and machine learning in healthcare.

Legal

Expected Growth: 4.5%

RELX Plc’s Legal segment growth is driven by increasing demand for digital information, cost savings, and improved efficiency in the legal industry, fuelled by government initiatives, globalization, and technological advancements

Exhibitions

Expected Growth: 5.5%

RELX's exhibitions and events segment growth is driven by increasing demand for face-to-face interactions, growing need for networking opportunities, and expansion into new markets, particularly in the Asia-Pacific region.

7. Detailed Products

Scientific, Technical & Medical Journals

RELX PLC publishes scientific, technical, and medical journals that provide researchers and professionals with access to high-quality, peer-reviewed content.

LexisNexis Legal Information Solutions

LexisNexis provides legal professionals with access to a vast library of legal information, including case law, statutes, and legal news.

Risk Solutions

RELX PLC's Risk Solutions provide businesses with data and analytics to help them assess and manage risk, prevent fraud, and comply with regulations.

Exhibitions and Events

RELX PLC organizes and hosts exhibitions and events that bring together professionals from various industries to network, learn, and do business.

Reed Business Information

Reed Business Information provides data and analytics to businesses, helping them to identify new opportunities, optimize operations, and make informed decisions.

8. RELX PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

RELX PLC operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the increasing popularity of open-access journals and online platforms poses a moderate threat to the company's traditional publishing business.

Bargaining Power Of Customers

RELX PLC's customers, primarily academic institutions and researchers, have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

RELX PLC has a diversified supplier base, and the company's scale and reputation give it significant bargaining power over its suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the academic publishing industry, including the need for significant investment in content creation, marketing, and distribution.

Intensity Of Rivalry

The academic publishing industry is highly competitive, with several established players competing for market share. RELX PLC faces intense rivalry from companies like Springer Nature, Wiley, and Taylor & Francis.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.95%
Debt Cost 6.25%
Equity Weight 35.05%
Equity Cost 6.25%
WACC 6.25%
Leverage 185.35%

11. Quality Control: RELX PLC passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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RCS MediaGroup

A-Score: 7.5/10

Value: 8.8

Growth: 3.7

Quality: 6.3

Yield: 10.0

Momentum: 7.5

Volatility: 9.0

1-Year Total Return ->

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Orange

A-Score: 7.2/10

Value: 6.2

Growth: 3.9

Quality: 4.4

Yield: 9.4

Momentum: 9.5

Volatility: 10.0

1-Year Total Return ->

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Pearson

A-Score: 6.2/10

Value: 6.2

Growth: 5.1

Quality: 7.2

Yield: 4.4

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Vodafone

A-Score: 6.1/10

Value: 9.0

Growth: 1.2

Quality: 2.1

Yield: 8.1

Momentum: 9.0

Volatility: 7.0

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Publicis Groupe

A-Score: 5.7/10

Value: 6.2

Growth: 5.6

Quality: 6.3

Yield: 6.9

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

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RELX

A-Score: 4.8/10

Value: 1.8

Growth: 5.6

Quality: 7.6

Yield: 3.8

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.22$

Current Price

23.22$

Potential

-0.00%

Expected Cash-Flows