REPLY SPA (REY.MI) Stock Fundamental Analysis
BIT:REY - Euronext Milan - IT0005282865 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to REY. REY was compared to 74 industry peers in the IT Services industry. REY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. REY is valied quite expensively at the moment, while it does show 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.
REY had positive earnings in each of the past 5 years.
REY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of REY (8.03%) is better than 90.54% of its industry peers.
REY has a better Return On Equity (16.24%) than 77.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.47%, REY belongs to the top of the industry, outperforming 93.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for REY is above the industry average of 10.94%.
The last Return On Invested Capital (15.47%) for REY is above the 3 year average (13.47%), which is a sign of increasing profitability.
| 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
REY has a Profit Margin of 9.20%. This is amongst the best in the industry. REY outperforms 91.89% of its industry peers.
In the last couple of years the Profit Margin of REY has remained more or less at the same level.
REY's Operating Margin of 16.25% is amongst the best of the industry. REY outperforms 94.59% of its industry peers.
In the last couple of years the Operating Margin of REY has grown nicely.
The Gross Margin of REY (97.98%) is better than 93.24% 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
REY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, REY has about the same amount of shares outstanding.
The number of shares outstanding for REY has been reduced compared to 5 years ago.
The debt/assets ratio for REY has been reduced compared to a year ago.
2.2 Solvency
REY has an Altman-Z score of 4.59. This indicates that REY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of REY (4.59) is better than 90.54% of its industry peers.
REY has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
REY has a better Debt to FCF ratio (0.63) than 87.84% of its industry peers.
REY has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of REY (0.10) is better than 85.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 4.59 |
ROIC/WACC1.96
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.55 indicates that REY should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.55, REY is doing good in the industry, outperforming 70.27% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that REY should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.48, REY is doing good in the industry, outperforming 74.32% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 13.16% on average over the past years. This is quite good.
Looking at the last year, REY shows a quite strong growth in Revenue. The Revenue has grown by 8.40% in the last year.
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
Based on estimates for the next years, REY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.28% on average per year.
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 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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.21, REY is valued on the expensive side.
REY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of REY to the average of the S&P500 Index (28.04), we can say REY is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.68, REY is valued on the expensive side.
REY's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of REY to the average of the S&P500 Index (37.64), we can say REY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.21 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REY indicates a slightly more expensive valuation: REY is more expensive than 63.51% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as REY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17 | ||
| EV/EBITDA | 10.32 |
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.
REY's earnings are expected to grow with 12.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)1.84
EPS Next 2Y13.14%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
REY has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 6.86, REY has a dividend in line with its industry peers.
With a Dividend Yield of 0.83, REY pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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 (7/25/2025, 7:00:00 PM)
136.8
-0.1 (-0.07%)
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 Cap5.12B
Analysts77.33
Price Target172.38 (26.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)-0.15%
PT rev (3m)-0.39%
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)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.21 | ||
| Fwd PE | 19.68 | ||
| P/S | 2.23 | ||
| P/FCF | 17 | ||
| P/OCF | 14.65 | ||
| P/B | 3.94 | ||
| P/tB | 10.01 | ||
| EV/EBITDA | 10.32 |
EPS(TTM)5.65
EY4.13%
EPS(NY)6.95
Fwd EY5.08%
FCF(TTM)8.05
FCFY5.88%
OCF(TTM)9.34
OCFY6.83%
SpS61.37
BVpS34.76
TBVpS13.66
PEG (NY)1.53
PEG (5Y)1.84
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 | 4.59 |
F-Score6
WACC7.88%
ROIC/WACC1.96
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 Year39.46%
EBIT Next 3Y17.82%
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%