REPLY SPA (REY.MI) Stock Fundamental Analysis
BIT:REY - Euronext Milan - IT0005282865 - Common Stock - Currency: EUR
Overall REY gets a fundamental rating of 7 out of 10. We evaluated REY against 70 industry peers in the IT Services industry. REY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, REY is valued expensive at the moment. These ratings would make REY suitable 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.
In the past 5 years REY has always been profitable.
REY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REY has a better Return On Assets (8.03%) than 90.00% of its industry peers.
With a decent Return On Equity value of 16.24%, REY is doing good in the industry, outperforming 77.14% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.47%, REY belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REY is above the industry average of 10.72%.
The 3 year average ROIC (13.47%) for REY is below the current ROIC(15.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 16.24% | ||
| ROIC | 15.47% |
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 9.20%, REY belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
REY's Profit Margin has been stable in the last couple of years.
REY has a Operating Margin of 16.25%. This is amongst the best in the industry. REY outperforms 94.29% of its industry peers.
REY's Operating Margin has improved in the last couple of years.
REY has a better Gross Margin (97.98%) than 92.86% of its industry peers.
REY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.25% | ||
| PM (TTM) | 9.2% | ||
| GM | 97.98% |
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.
The number of shares outstanding for REY remains at a similar level compared to 1 year ago.
The number of shares outstanding for REY has been reduced compared to 5 years ago.
REY has a better debt/assets ratio than last year.
2.2 Solvency
REY has an Altman-Z score of 4.92. This indicates that REY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of REY (4.92) is better than 92.86% of its industry peers.
The Debt to FCF ratio of REY is 0.63, which is an excellent value as it means it would take REY, only 0.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.63, REY belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that REY is not too dependend on debt financing.
REY's Debt to Equity ratio of 0.10 is amongst the best of the industry. REY outperforms 87.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 4.92 |
ROIC/WACC1.87
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.55 indicates that REY should not have too much problems paying its short term obligations.
REY has a better Current ratio (1.55) than 67.14% of its industry peers.
REY has a Quick Ratio of 1.48. This is a normal value and indicates that REY is financially healthy and should not expect problems in meeting its short term obligations.
REY's Quick ratio of 1.48 is fine compared to the rest of the industry. REY outperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.76% over the past year.
Measured over the past years, REY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.16% on average per year.
The Revenue has grown by 8.40% 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)12.76%
EPS 3Y11.88%
EPS 5Y13.16%
EPS Q2Q%2.16%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y15.66%
Revenue growth 5Y14.19%
Sales Q2Q%9.5%
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.
Based on estimates for the next years, REY will show a quite strong growth in Revenue. The Revenue will grow by 8.16% on average per year.
EPS Next Y15.81%
EPS Next 2Y13.14%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue Next Year10.67%
Revenue Next 2Y9.66%
Revenue Next 3Y9.36%
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
Based on the Price/Earnings ratio of 28.09, the valuation of REY can be described as expensive.
REY's Price/Earnings is on the same level as the industry average.
REY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.83, which indicates a rather expensive current valuation of REY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.86. REY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
REY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. REY is more expensive than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REY is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.72 | ||
| EV/EBITDA | 11.95 |
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)1.78
PEG (5Y)2.13
EPS Next 2Y13.14%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
REY has a yearly dividend return of 0.77%, which is pretty low.
REY's Dividend Yield is comparable with the industry average which is at 7.42.
Compared to an average S&P500 Dividend Yield of 2.44, REY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
18.59% of the earnings are spent on dividend by REY. This is a low number and sustainable payout ratio.
REY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.59%
EPS Next 2Y13.14%
EPS Next 3Y12.28%
BIT:REY (5/2/2025, 7:00:00 PM)
158.7
+1.9 (+1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners35.37%
Inst Owner ChangeN/A
Ins Owners39.75%
Ins Owner ChangeN/A
Market Cap5.94B
Analysts76
Price Target173.06 (9.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend1.05
Dividend Growth(5Y)17.46%
DP18.59%
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)5%
PT rev (3m)8.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.21%
EPS NY rev (3m)9.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 22.83 | ||
| P/S | 2.59 | ||
| P/FCF | 19.72 | ||
| P/OCF | 16.99 | ||
| P/B | 4.57 | ||
| P/tB | 11.61 | ||
| EV/EBITDA | 11.95 |
EPS(TTM)5.65
EY3.56%
EPS(NY)6.95
Fwd EY4.38%
FCF(TTM)8.05
FCFY5.07%
OCF(TTM)9.34
OCFY5.89%
SpS61.37
BVpS34.76
TBVpS13.66
PEG (NY)1.78
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 16.24% | ||
| ROCE | 22.48% | ||
| ROIC | 15.47% | ||
| ROICexc | 22.86% | ||
| ROICexgc | 76.93% | ||
| OM | 16.25% | ||
| PM (TTM) | 9.2% | ||
| GM | 97.98% | ||
| FCFM | 13.11% |
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-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 56.96% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 117.63 | ||
| Cash Conversion | 76.31% | ||
| Profit Quality | 142.59% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 4.92 |
F-Score6
WACC8.28%
ROIC/WACC1.87
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)12.76%
EPS 3Y11.88%
EPS 5Y13.16%
EPS Q2Q%2.16%
EPS Next Y15.81%
EPS Next 2Y13.14%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue 1Y (TTM)8.4%
Revenue growth 3Y15.66%
Revenue growth 5Y14.19%
Sales Q2Q%9.5%
Revenue Next Year10.67%
Revenue Next 2Y9.66%
Revenue Next 3Y9.36%
Revenue Next 5Y8.16%
EBIT growth 1Y28.87%
EBIT growth 3Y21.26%
EBIT growth 5Y19.22%
EBIT Next Year40.05%
EBIT Next 3Y18.4%
EBIT Next 5Y13.14%
FCF growth 1Y36.52%
FCF growth 3Y20.88%
FCF growth 5Y10.09%
OCF growth 1Y39.89%
OCF growth 3Y18.96%
OCF growth 5Y11.5%