RELX PLC (RELX): A Bull Case Theory

We came across a bullish thesis on RELX PLC on Hidden Market Gems’s Substack. In this article, we will summarize the bulls’ thesis on RELX. RELX PLC's share was trading at $51.92 as of July 29^th. RELX’s trailing and forward P/E were 37.26 and 29.50 respectively according to Yahoo Finance.

RELX Plc, once a traditional Anglo-Dutch publisher, has executed one of the most successful digital reinventions in Europe. Under CEO Erik Engström’s 15-year leadership, the company has transformed into a global analytics powerhouse, providing high-stakes, workflow-embedded data tools to professionals who cannot afford errors—insurers, banks, scientists, law enforcement, and lawyers. The engine behind RELX’s strength is LexisNexis Risk, a proprietary data platform for fraud detection and risk scoring, paired with elite scientific publishing (Elsevier), legal research (LexisNexis Legal), and post-pandemic-recovered exhibitions (RX).

This transformation is underpinned by relentless investment—£1.4–1.5B annually in technology, 9,000+ technologists, and platforms enhanced by AI across domains. RELX’s tools are mission-critical, command high margins, and are deeply embedded, with 80%+ recurring digital revenue. Financially, RELX is a compounding machine: group revenues have grown from £5.8B to £9.4B over the past decade, with EPS compounding and margins rising to 34.8% in H1 2025. The company generates strong cash flows (97% conversion), enabling rising dividends and aggressive buybacks. Its acquisition strategy adds bolt-on AI and analytics assets to deepen functionality in key segments.

Each of RELX’s four business units is a market leader or close second, creating synergistic cross-segment opportunities. Competitors exist—Thomson Reuters, Wolters Kluwer, Verisk—but none match RELX’s breadth or integration. With decades of proprietary data, superior AI deployment, and high client switching costs, RELX enjoys a durable moat. It continues to benefit from secular tailwinds in digitization, regulation, and AI, making it a long-duration compounder with low volatility and high reliability.

Previously we covered a bullish thesis on Copart, Inc. by Bulls on Parade in May 2025, which highlighted its dominant salvage model, strong balance sheet, and disciplined capital allocation. The stock has depreciated by approximately 13.45% since our coverage due to margin concerns. The thesis still stands. Hidden Market Gems shares a similar approach but focuses on RELX’s AI-led data platform.

RELX PLC is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held RELX at the end of the first quarter which was 16 in the previous quarter. While we acknowledge the potential of RELX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.