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 71 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.
REY had a positive operating cash flow in the past year.
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
REY has a better Return On Assets (8.03%) than 90.14% of its industry peers.
REY's Return On Equity of 16.24% is fine compared to the rest of the industry. REY outperforms 74.65% of its industry peers.
The Return On Invested Capital of REY (15.47%) is better than 92.96% 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 10.64%.
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
With an excellent Profit Margin value of 9.20%, REY belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
In the last couple of years the Profit Margin of REY has remained more or less at the same level.
With an excellent Operating Margin value of 16.25%, REY belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
REY's Operating Margin has improved in the last couple of years.
REY's Gross Margin of 97.98% is amongst the best of the industry. REY outperforms 92.96% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REY is creating some 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.
The debt/assets ratio for REY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.70 indicates that REY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.70, REY belongs to the top of the industry, outperforming 91.55% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.63, REY belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
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 81.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.05
WACC14.71%
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 69.01% 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 has a better Quick ratio (1.48) than 73.24% 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.
REY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.40%.
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
The Earnings Per Share is expected to grow by 12.28% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.16% on average over the next years. This is quite good.
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 25.04, REY can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as REY.
Compared to an average S&P500 Price/Earnings ratio of 27.45, REY is valued at the same level.
The Price/Forward Earnings ratio is 20.36, which indicates a rather expensive current valuation of REY.
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 (21.90), we can say REY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 20.36 |
4.2 Price Multiples
64.79% of the companies in the same industry are cheaper than REY, based on the Enterprise Value to EBITDA ratio.
REY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.58 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
REY's 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.
A more expensive valuation may be justified as REY's earnings are expected to grow with 12.28% in the coming years.
PEG (NY)1.58
PEG (5Y)1.9
EPS Next 2Y13.14%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, REY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.93, REY has a dividend in line with its industry peers.
With a Dividend Yield of 0.80, REY pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
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 (7/4/2025, 7:00:00 PM)
141.5
-2 (-1.39%)
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 Cap5.29B
Analysts77.33
Price Target172.64 (22.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)-0.25%
PT rev (3m)4.74%
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)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 20.36 | ||
| P/S | 2.31 | ||
| P/FCF | 17.58 | ||
| P/OCF | 15.15 | ||
| P/B | 4.07 | ||
| P/tB | 10.36 | ||
| EV/EBITDA | 10.86 |
EPS(TTM)5.65
EY3.99%
EPS(NY)6.95
Fwd EY4.91%
FCF(TTM)8.05
FCFY5.69%
OCF(TTM)9.34
OCFY6.6%
SpS61.37
BVpS34.76
TBVpS13.66
PEG (NY)1.58
PEG (5Y)1.9
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 | 4.7 |
F-Score6
WACC14.71%
ROIC/WACC1.05
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%