REPLY SPA (REY.MI) Stock Fundamental Analysis
BIT:REY - Euronext Milan - IT0005282865 - Common Stock - Currency: EUR
Taking everything into account, REY scores 7 out of 10 in our fundamental rating. REY was compared to 72 industry peers in the IT Services industry. REY gets an excellent profitability rating and is at the same time showing great financial health properties. REY is not valued too expensively and it also shows a decent growth rate. These ratings could make REY a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year REY was profitable.
In the past year REY had a positive cash flow from operations.
Each year in the past 5 years REY has been profitable.
Each year in the past 5 years REY had a positive operating cash flow.
1.2 Ratios
REY's Return On Assets of 9.54% is amongst the best of the industry. REY outperforms 87.50% of its industry peers.
REY has a Return On Equity of 17.36%. This is in the better half of the industry: REY outperforms 77.78% of its industry peers.
REY has a better Return On Invested Capital (17.19%) than 91.67% of its industry peers.
REY had an Average Return On Invested Capital over the past 3 years of 13.47%. This is above the industry average of 11.32%.
The last Return On Invested Capital (17.19%) for REY is above the 3 year average (13.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 17.36% | ||
| ROIC | 17.19% |
ROA(3y)8.15%
ROA(5y)8.16%
ROE(3y)17.56%
ROE(5y)17.9%
ROIC(3y)13.47%
ROIC(5y)12.97%
1.3 Margins
Looking at the Profit Margin, with a value of 9.87%, REY belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
REY's Profit Margin has been stable in the last couple of years.
REY's Operating Margin of 17.28% is amongst the best of the industry. REY outperforms 94.44% of its industry peers.
In the last couple of years the Operating Margin of REY has grown nicely.
With an excellent Gross Margin value of 97.74%, REY belongs to the best of the industry, outperforming 93.06% of the companies in the same industry.
REY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.28% | ||
| PM (TTM) | 9.87% | ||
| GM | 97.74% |
OM growth 3Y4.84%
OM growth 5Y4.41%
PM growth 3Y-3.25%
PM growth 5Y-0.91%
GM growth 3Y-0.19%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REY is creating value.
REY has about the same amout of shares outstanding than it did 1 year ago.
REY has less shares outstanding than it did 5 years ago.
REY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.06 indicates that REY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.06, REY belongs to the best of the industry, outperforming 90.28% of the companies in the same industry.
The Debt to FCF ratio of REY is 0.55, which is an excellent value as it means it would take REY, only 0.55 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.55, REY belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that REY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, REY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 5.06 |
ROIC/WACC2.19
WACC7.85%
2.3 Liquidity
A Current Ratio of 1.69 indicates that REY should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.69, REY is doing good in the industry, outperforming 79.17% of the companies in the same industry.
REY has a Quick Ratio of 1.41. This is a normal value and indicates that REY is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of REY (1.41) is better than 68.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
REY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.04%, which is quite good.
REY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.16% yearly.
The Revenue has grown by 9.04% in the past year. This is quite good.
Measured over the past years, REY shows a quite strong growth in Revenue. The Revenue has been growing by 14.19% on average per year.
EPS 1Y (TTM)13.04%
EPS 3Y11.88%
EPS 5Y13.16%
EPS Q2Q%24.83%
Revenue 1Y (TTM)9.04%
Revenue growth 3Y15.66%
Revenue growth 5Y14.19%
Sales Q2Q%8.6%
3.2 Future
REY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.28% yearly.
REY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.16% yearly.
EPS Next Y15.81%
EPS Next 2Y13.14%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue Next Year8.86%
Revenue Next 2Y8.63%
Revenue Next 3Y8.57%
Revenue Next 5Y8.16%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.90, REY is valued on the expensive side.
REY's Price/Earnings ratio is in line with the industry average.
REY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
A Price/Forward Earnings ratio of 16.35 indicates a correct valuation of REY.
The rest of the industry has a similar Price/Forward Earnings ratio as REY.
When comparing the Price/Forward Earnings ratio of REY to the average of the S&P500 Index (35.24), we can say REY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
REY's Enterprise Value to EBITDA ratio is in line with the industry average.
REY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.85 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
REY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
REY has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as REY's earnings are expected to grow with 12.28% in the coming years.
PEG (NY)1.26
PEG (5Y)1.51
EPS Next 2Y13.14%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, REY is not a good candidate for dividend investing.
REY's Dividend Yield is comparable with the industry average which is at 7.34.
Compared to an average S&P500 Dividend Yield of 2.36, REY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of REY is nicely growing with an annual growth rate of 17.46%!
Dividend Growth(5Y)17.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.06% of the earnings are spent on dividend by REY. This is a low number and sustainable payout ratio.
The dividend of REY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.06%
EPS Next 2Y13.14%
EPS Next 3Y12.28%
BIT:REY (8/19/2025, 5:35:30 PM)
125.6
+2.6 (+2.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners34.08%
Inst Owner ChangeN/A
Ins Owners37.08%
Ins Owner ChangeN/A
Market Cap4.70B
Analysts78.67
Price Target172.47 (37.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.05
Dividend Growth(5Y)17.46%
DP19.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.1%
PT rev (3m)-0.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.64%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 16.35 | ||
| P/S | 1.96 | ||
| P/FCF | 14.85 | ||
| P/OCF | 12.92 | ||
| P/B | 3.46 | ||
| P/tB | 7.56 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)6.31
EY5.02%
EPS(NY)7.68
Fwd EY6.12%
FCF(TTM)8.46
FCFY6.73%
OCF(TTM)9.72
OCFY7.74%
SpS63.93
BVpS36.34
TBVpS16.6
PEG (NY)1.26
PEG (5Y)1.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 17.36% | ||
| ROCE | 25.1% | ||
| ROIC | 17.19% | ||
| ROICexc | 25.41% | ||
| ROICexgc | 74.72% | ||
| OM | 17.28% | ||
| PM (TTM) | 9.87% | ||
| GM | 97.74% | ||
| FCFM | 13.23% |
ROA(3y)8.15%
ROA(5y)8.16%
ROE(3y)17.56%
ROE(5y)17.9%
ROIC(3y)13.47%
ROIC(5y)12.97%
ROICexc(3y)18.8%
ROICexc(5y)18.61%
ROICexgc(3y)60.03%
ROICexgc(5y)55.62%
ROCE(3y)19.66%
ROCE(5y)18.95%
ROICexcg growth 3Y13.53%
ROICexcg growth 5Y14.58%
ROICexc growth 3Y8.42%
ROICexc growth 5Y3.55%
OM growth 3Y4.84%
OM growth 5Y4.41%
PM growth 3Y-3.25%
PM growth 5Y-0.91%
GM growth 3Y-0.19%
GM growth 5Y-0.05%
F-Score7
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 44.58% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 161.28 | ||
| Cash Conversion | 70.06% | ||
| Profit Quality | 134.12% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 5.06 |
F-Score7
WACC7.85%
ROIC/WACC2.19
Cap/Depr(3y)55.71%
Cap/Depr(5y)56.48%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.9%
Profit Quality(3y)111.82%
Profit Quality(5y)124.13%
High Growth Momentum
Growth
EPS 1Y (TTM)13.04%
EPS 3Y11.88%
EPS 5Y13.16%
EPS Q2Q%24.83%
EPS Next Y15.81%
EPS Next 2Y13.14%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue 1Y (TTM)9.04%
Revenue growth 3Y15.66%
Revenue growth 5Y14.19%
Sales Q2Q%8.6%
Revenue Next Year8.86%
Revenue Next 2Y8.63%
Revenue Next 3Y8.57%
Revenue Next 5Y8.16%
EBIT growth 1Y29.98%
EBIT growth 3Y21.26%
EBIT growth 5Y19.22%
EBIT Next Year39.46%
EBIT Next 3Y17.82%
EBIT Next 5Y13.14%
FCF growth 1Y83.64%
FCF growth 3Y20.88%
FCF growth 5Y10.09%
OCF growth 1Y70.61%
OCF growth 3Y18.96%
OCF growth 5Y11.5%