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 65 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 valied quite expensively at the moment, while 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.
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 has a better Return On Assets (8.03%) than 86.15% of its industry peers.
REY's Return On Equity of 16.24% is fine compared to the rest of the industry. REY outperforms 73.85% of its industry peers.
REY has a Return On Invested Capital of 15.47%. This is amongst the best in the industry. REY outperforms 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REY is above the industry average of 10.96%.
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 better Profit Margin (9.20%) than 87.69% of its industry peers.
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 93.85% of the companies in the same industry.
REY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 97.98%, REY belongs to the best of the industry, outperforming 90.77% 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 | 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 4.80. This indicates that REY is financially healthy and has little risk of bankruptcy at the moment.
REY has a Altman-Z score of 4.80. This is amongst the best in the industry. REY outperforms 92.31% 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 92.31% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that REY is not too dependend on debt financing.
REY has a Debt to Equity ratio of 0.10. This is amongst the best in the industry. REY outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 4.8 |
ROIC/WACC1.87
WACC8.27%
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.
The Current ratio of REY (1.55) is better than 64.62% of its industry peers.
A Quick Ratio of 1.48 indicates that REY should not have too much problems paying its short term obligations.
The Quick ratio of REY (1.48) is better than 72.31% 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.
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
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 8.15% on average per year.
EPS Next Y15.81%
EPS Next 2Y13.14%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue Next Year10.66%
Revenue Next 2Y9.8%
Revenue Next 3Y8.34%
Revenue Next 5Y8.15%
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
The Price/Earnings ratio is 26.44, which means the current valuation is very expensive for REY.
REY's Price/Earnings ratio is a bit more expensive when compared to the industry. REY is more expensive than 60.00% of the companies in the same industry.
REY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.49, which indicates a rather expensive current valuation of REY.
REY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.38. REY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 21.49 |
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 66.15% of the companies listed in the same industry.
REY's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. REY is more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.56 | ||
| EV/EBITDA | 11.35 |
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)1.67
PEG (5Y)2.01
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 slightly below the industry average, which is at 7.76.
Compared to an average S&P500 Dividend Yield of 2.51, REY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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 (4/25/2025, 7:00:00 PM)
149.4
0 (0%)
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 Cap5.59B
Analysts76
Price Target174.68 (16.92%)
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)5.98%
PT rev (3m)9.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)3.59%
EPS NY rev (3m)9.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 21.49 | ||
| P/S | 2.43 | ||
| P/FCF | 18.56 | ||
| P/OCF | 15.99 | ||
| P/B | 4.3 | ||
| P/tB | 10.93 | ||
| EV/EBITDA | 11.35 |
EPS(TTM)5.65
EY3.78%
EPS(NY)6.95
Fwd EY4.65%
FCF(TTM)8.05
FCFY5.39%
OCF(TTM)9.34
OCFY6.25%
SpS61.37
BVpS34.76
TBVpS13.66
PEG (NY)1.67
PEG (5Y)2.01
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 | 4.8 |
F-Score6
WACC8.27%
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 Year10.66%
Revenue Next 2Y9.8%
Revenue Next 3Y8.34%
Revenue Next 5Y8.15%
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%