RELXRELX PLC
Is the business good?
The checks split: earnings fully cash-backed (1.2×), but returns that lean on debt.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 87% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 6.8% · fiscal year to FY2025
- Cash conversion
- 1.24×
Cash conversion · 1.20× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Specialty Business Services
Ranks #2 of 22 by RyuScore