RELX PLC (RELX): A Bull Case Theory 

We came across a bullish thesis on RELX PLC on Multibagger Radar’s Substack by Joshua. In this article, we will summarize the bulls’ thesis on RELX. RELX PLC’s share was trading at $46.47 as of September 23rd. RELX’s trailing and forward P/E were 33.38 and 24.27, respectively according to Yahoo Finance.

Computer with charts

RELX, formed in 1993 from the merger of Reed International and Elsevier, has established itself as a critical provider of professional tools across science, law, risk analytics, and exhibitions. In 2024, the company generated £9,434m in revenue, up 7% underlying, with adjusted operating profit of £3,199m (+10% underlying) and adjusted EPS of 120.1p (+9% at constant FX), while digital and electronic revenue accounted for ~83% of total, reflecting a strong transition from print to data-driven platforms.

By H1-2025, revenue reached £4,741m (+7% underlying) and adjusted operating profit £1,652m (+9%), with cash-flow conversion at 100% and net debt/EBITDA at 2.2×. Management has executed £1.0bn of a £1.5bn buyback, supporting shareholder returns alongside a 7% interim dividend increase. RELX’s moat lies in its unrivaled proprietary datasets and embedded position in workflow-critical spend: scientists rely on Elsevier for research, lawyers on LexisNexis for drafting, and financial institutions on its risk platforms.

This grip is being strengthened with AI integrations—Lexis+ AI, Nexis+ AI, and ScienceDirect AI—enhancing decision-making and scaling globally. Underlying growth in H1-2025 was broad-based: Risk +8%, Legal +9%, STM +5%, Exhibitions +8%, driven by analytics and AI overlaying entrenched datasets. CEO Erik Engström’s decade-plus leadership has compounded shareholder value, delivering ~+328% TSR versus +83% for the FTSE 100.

Despite a quality premium reflected in mid-30s P/Es, RELX faces risks from AI monetization delays, pricing pressure, or FX/regulatory shocks. Nevertheless, the combination of steady underlying growth, AI-driven workflow penetration, disciplined buybacks, and strong free cash flow makes RELX a reliable long-term compounder. Sustaining ~10–12% EPS growth with modest leverage could generate 2–3× returns over a cycle, highlighting the power of compounding and operational execution.

Previously we covered a bullish thesis on SAP SE (SAP) by FluentInQuality in April 2025, which highlighted its deep enterprise integration, high customer stickiness, cloud transformation with S/4HANA, and strategic AI deployment. The stock has depreciated approximately by 9.32% since our coverage, but the thesis still stands as SAP continues compounding value. Joshua shares a similar focus on workflow-critical integration, emphasizing RELX’s datasets, AI tools, and diversified professional segments.

RELX PLC is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held RELX at the end of the second quarter which was 18 in the previous quarter. While we acknowledge the risk and potential of RELX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RELX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.