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 72 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make REY suitable for quality investing!
1. Profitability
1.1 Basic Checks
REY had positive earnings in the past year.
In the past year REY had a positive cash flow from operations.
In the past 5 years REY has always been profitable.
In the past 5 years REY always reported a positive cash flow from operatings.
1.2 Ratios
REY has a Return On Assets of 8.03%. This is amongst the best in the industry. REY outperforms 87.50% of its industry peers.
REY has a better Return On Equity (16.24%) than 77.78% of its industry peers.
REY has a better Return On Invested Capital (15.47%) than 93.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REY is above the industry average of 10.92%.
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 90.28% of its industry peers.
In the last couple of years the Profit Margin of REY has remained more or less at the same level.
Looking at the Operating Margin, with a value of 16.25%, REY belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
REY's Operating Margin has improved in the last couple of years.
REY has a Gross Margin of 97.98%. This is amongst the best in the industry. REY outperforms 93.06% of its industry peers.
In the last couple of years the Gross Margin of REY has remained more or less at the same level.
| 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 4.69. This indicates that REY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of REY (4.69) is better than 91.67% 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.
REY has a better Debt to FCF ratio (0.63) than 88.89% 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.
REY has a Debt to Equity ratio of 0.10. This is amongst the best in the industry. REY outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 4.69 |
ROIC/WACC1.87
WACC8.26%
2.3 Liquidity
REY has a Current Ratio of 1.55. This is a normal value and indicates that REY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.55, REY is in the better half of the industry, outperforming 69.44% 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.
REY has a better Quick ratio (1.48) than 76.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
REY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.76%, 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 8.40% in the past year. This is quite good.
REY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.19% yearly.
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.
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 25.29, the valuation of REY can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of REY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.82. REY is around the same levels.
Based on the Price/Forward Earnings ratio of 20.56, the valuation of REY can be described as rather expensive.
REY's Price/Forward Earnings ratio is in line with the industry average.
REY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 20.56 |
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 62.50% of the companies in the same industry.
REY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.76 | ||
| EV/EBITDA | 10.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of REY 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)1.6
PEG (5Y)1.92
EPS Next 2Y13.14%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
REY has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 7.16, REY has a dividend in line with its industry peers.
With a Dividend Yield of 0.78, REY pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
On average, the dividend of REY grows each year by 17.46%, which is quite nice.
Dividend Growth(5Y)17.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
REY pays out 18.59% of its income as dividend. This is a 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 (5/23/2025, 7:00:00 PM)
142.9
-1.6 (-1.11%)
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 Cap5.35B
Analysts77.33
Price Target173.06 (21.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)-0.92%
PT rev (3m)7.45%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)3.59%
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 | 25.29 | ||
| Fwd PE | 20.56 | ||
| P/S | 2.33 | ||
| P/FCF | 17.76 | ||
| P/OCF | 15.3 | ||
| P/B | 4.11 | ||
| P/tB | 10.46 | ||
| EV/EBITDA | 10.82 |
EPS(TTM)5.65
EY3.95%
EPS(NY)6.95
Fwd EY4.86%
FCF(TTM)8.05
FCFY5.63%
OCF(TTM)9.34
OCFY6.54%
SpS61.37
BVpS34.76
TBVpS13.66
PEG (NY)1.6
PEG (5Y)1.92
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 | 4.69 |
F-Score6
WACC8.26%
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 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%