Is the business good?
How good a business is RELX?
RELX PLC earns 25% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
25%
Return on invested capital · cost of capital 9.0% · 16 points above what the capital costs: growth creates value
- Operating margin
- 32%
Operating margin · Specialty Business Services median 10% · fiscal year to FY2025
- Cash conversion
- 1.36×
Cash conversion · 1.34× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 26% |
| FY2022 | 27% |
| FY2023 | 29% |
| FY2024 | 30% |
| FY2025 | 32% |
Details›
- Gross marginfiscal year to FY2025
- 66%
- Operating marginfiscal year to FY2025
- 32%
- Net marginfiscal year to FY2025
- 22%
- Free cash flow margin
- 29%
- Revenue, trailing twelve months
- $9.59B
- Free cash flow, trailing twelve months
- $2.81B
- Net income, trailing twelve months
- $2.06B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 25%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Business Services
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