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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's recent performance faces subtle downward pressure due to mixed analyst perspectives. The company's consensus analyst price target shifted modestly downward from £44.51 to £44.05, then slightly upward to $44.18, reflecting cautious optimism amidst sector-wide caution. Rising competition and persistent challenges in the industry have tempered enthusiasm. Despite this, RELX's GenAI initiatives and data assets continue to drive growth. Recent recognitions for LexisNexis Risk Solutions' innovation in fraud prevention also highlight the company's strengths.

1.c. Company Highlights

2. Strong Financial Performance

The company delivered a strong financial performance in the first half, with underlying revenue growth of 7% and underlying adjusted operating profit growth of 9%. Adjusted earnings per share growth was 10% at constant currency. The interim dividend was increased by 7% to 19.5p per share. Revenue growth was driven by Risk (8%), STM (5%), Legal (9%), and Exhibitions (8%).

Publication Date: Jul -27

📋 Highlights
  • Revenue Growth Across Segments:: Risk (8%), STM (5%), Legal (9%), and Exhibitions (8%) drove overall revenue growth.
  • Interim Dividend Increase:: Dividend rose by 7% to 19.5p per share, reflecting strong financial performance.
  • Future Growth Outlook:: Company expects continued strong underlying revenue and profit growth, with Risk and Exhibitions leading the charge.
  • Print Revenue Decline:: Print revenue dropped to 4% of total revenue, down from 64% 25 years ago, with further high single-digit declines expected.
  • Strong Cash Flow:: 100% cash conversion reported, with GBP1 billion deployed for share buybacks and GBP262 million for acquisitions.

Segment Performance

In Risk, strong growth was driven by higher-value analytics and decision tools. The acquisition of IDVerse, an ID document verification platform for business services in Risk, was completed in the first quarter. In STM, growth was supported by new product introductions and renewals, with an 18-month penetration rate of 20% for Scopus AI. In Legal, growth was driven by the shift towards higher-growth, higher-value legal analytics, with a strong response to new product introductions, particularly Lexis+ AI.

Financial Highlights

The company reported strong cash conversion of 100%. The company deployed GBP1 billion for share buybacks and GBP262 million for acquisitions in the first half. The decline in print revenue was significant, from 64% of total revenue 25 years ago to 4% currently. The company expects profit from print and print-related activities to decline in the high single digits each year.

Growth Objectives

The company's growth objectives remain to sustain strong long-term growth in Risk, continue improving growth trajectories in STM and Legal, and sustain strong long-term growth in Exhibitions. The company is exploring ways to add value to customers through collaborative pilots, specifically in a couple of specific use cases.

Valuation

With a P/E Ratio of 37.83 and an EV/EBITDA of 26.81, the stock is trading at a premium. However, the company's strong financial performance and growth prospects justify this valuation. The dividend yield of 1.6% and free cash flow yield of 3.63% provide a relatively stable source of return for investors.

Outlook

The company expects continued strong underlying revenue growth, with adjusted operating profit growth slightly exceeding revenue growth. For the full year, Risk is expected to sustain strong growth, STM and Legal to continue improving growth trajectories, and Exhibitions to sustain strong growth. Actual EPS came out at 0.645, relative to estimates at 0.424, beating analyst expectations.

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: 8.5

Growth: 3.7

Quality: 6.9

Yield: 9.4

Momentum: 8.5

Volatility: 8.0

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Orange

A-Score: 7.2/10

Value: 6.3

Growth: 3.9

Quality: 4.4

Yield: 9.4

Momentum: 9.5

Volatility: 9.7

1-Year Total Return ->

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Pearson

A-Score: 6.2/10

Value: 6.4

Growth: 5.1

Quality: 7.2

Yield: 4.4

Momentum: 5.5

Volatility: 8.7

1-Year Total Return ->

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Vodafone

A-Score: 6.1/10

Value: 9.4

Growth: 1.2

Quality: 2.0

Yield: 8.8

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

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Publicis Groupe

A-Score: 5.6/10

Value: 6.1

Growth: 5.7

Quality: 6.1

Yield: 6.9

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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RELX

A-Score: 5.1/10

Value: 1.2

Growth: 5.6

Quality: 7.5

Yield: 3.1

Momentum: 4.0

Volatility: 9.3

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

30.35$

Current Price

30.35$

Potential

-0.00%

Expected Cash-Flows