REPLY SPA (REY.MI) Stock Fundamental Analysis
BIT:REY - Borsa Italiana Milan - IT0005282865 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to REY. REY was compared to 71 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. This makes REY very considerable 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.
Each year in the past 5 years REY had a positive operating cash flow.
1.2 Ratios
REY's Return On Assets of 8.92% is amongst the best of the industry. REY outperforms 89.23% of its industry peers.
REY has a Return On Equity of 17.56%. This is in the better half of the industry: REY outperforms 75.38% of its industry peers.
REY's Return On Invested Capital of 14.97% is amongst the best of the industry. REY outperforms 89.23% of its industry peers.
REY had an Average Return On Invested Capital over the past 3 years of 12.74%. This is in line with the industry average of 10.97%.
The last Return On Invested Capital (14.97%) for REY is above the 3 year average (12.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.92% | ||
| ROE | 17.56% | ||
| ROIC | 14.97% |
ROA(3y)8.18%
ROA(5y)8.29%
ROE(3y)18.32%
ROE(5y)18.56%
ROIC(3y)12.74%
ROIC(5y)12.85%
1.3 Margins
REY has a better Profit Margin (9.49%) than 87.69% of its industry peers.
REY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 14.49%, REY belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
In the last couple of years the Operating Margin of REY has grown nicely.
REY's Gross Margin of 98.38% is amongst the best of the industry. REY outperforms 90.77% 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 | 14.49% | ||
| PM (TTM) | 9.49% | ||
| GM | 98.38% |
OM growth 3Y1.16%
OM growth 5Y2.03%
PM growth 3Y-3.75%
PM growth 5Y-1.79%
GM growth 3Y0.11%
GM growth 5Y0.12%
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.
REY has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, REY has less shares outstanding
REY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.41 indicates that REY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.41, REY belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
REY has a debt to FCF ratio of 0.89. This is a very positive value and a sign of high solvency as it would only need 0.89 years to pay back of all of its debts.
The Debt to FCF ratio of REY (0.89) is better than 92.31% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that REY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.11, REY belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 5.41 |
ROIC/WACC1.94
WACC7.71%
2.3 Liquidity
A Current Ratio of 1.51 indicates that REY should not have too much problems paying its short term obligations.
REY has a better Current ratio (1.51) than 64.62% of its industry peers.
A Quick Ratio of 1.25 indicates that REY should not have too much problems paying its short term obligations.
REY has a better Quick ratio (1.25) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
REY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.34%.
REY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.41% yearly.
The Revenue has been growing slightly by 7.50% in the past year.
REY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.38% yearly.
EPS 1Y (TTM)7.34%
EPS 3Y14.87%
EPS 5Y13.41%
EPS Q2Q%27.39%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y19.21%
Revenue growth 5Y15.38%
Sales Q2Q%7.26%
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 13.09% yearly.
The Revenue is expected to grow by 8.74% on average over the next years. This is quite good.
EPS Next Y22.04%
EPS Next 2Y16.58%
EPS Next 3Y14.76%
EPS Next 5Y13.09%
Revenue Next Year7.72%
Revenue Next 2Y9.14%
Revenue Next 3Y9.07%
Revenue Next 5Y8.74%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 28.35 indicates a quite expensive valuation of REY.
Based on the Price/Earnings ratio, REY is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of REY to the average of the S&P500 Index (28.47), we can say REY is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.63, the valuation of REY can be described as rather expensive.
Based on the Price/Forward Earnings ratio, REY is valued a bit more expensive than 64.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. REY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 23.63 |
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 69.23% 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 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.42 | ||
| EV/EBITDA | 14.36 |
4.3 Compensation for Growth
The 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 14.76% in the coming years.
PEG (NY)1.29
PEG (5Y)2.11
EPS Next 2Y16.58%
EPS Next 3Y14.76%
5. Dividend
5.1 Amount
REY has a yearly dividend return of 0.64%, which is pretty low.
REY's Dividend Yield is comparable with the industry average which is at 4.29.
With a Dividend Yield of 0.64, REY pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
On average, the dividend of REY grows each year by 22.88%, which is quite nice.
Dividend Growth(5Y)22.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
18.85% 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.
DP18.85%
EPS Next 2Y16.58%
EPS Next 3Y14.76%
REPLY SPA
BIT:REY (2/5/2025, 5:35:30 PM)
158.2
+0.2 (+0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners36.05%
Inst Owner ChangeN/A
Ins Owners39.75%
Ins Owner ChangeN/A
Market Cap5.92B
Analysts72.86
Price Target161.06 (1.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.03
Dividend Growth(5Y)22.88%
DP18.85%
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)0.89%
PT rev (3m)12.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.76%
EPS NY rev (3m)5.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 23.63 | ||
| P/S | 2.7 | ||
| P/FCF | 26.42 | ||
| P/OCF | 22.78 | ||
| P/B | 4.99 | ||
| P/tB | 12.51 | ||
| EV/EBITDA | 14.36 |
EPS(TTM)5.58
EY3.53%
EPS(NY)6.69
Fwd EY4.23%
FCF(TTM)5.99
FCFY3.78%
OCF(TTM)6.95
OCFY4.39%
SpS58.63
BVpS31.69
TBVpS12.65
PEG (NY)1.29
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.92% | ||
| ROE | 17.56% | ||
| ROCE | 21.26% | ||
| ROIC | 14.97% | ||
| ROICexc | 21.06% | ||
| ROICexgc | 63.72% | ||
| OM | 14.49% | ||
| PM (TTM) | 9.49% | ||
| GM | 98.38% | ||
| FCFM | 10.21% |
ROA(3y)8.18%
ROA(5y)8.29%
ROE(3y)18.32%
ROE(5y)18.56%
ROIC(3y)12.74%
ROIC(5y)12.85%
ROICexc(3y)17.57%
ROICexc(5y)18.31%
ROICexgc(3y)53.15%
ROICexgc(5y)49.16%
ROCE(3y)18.24%
ROCE(5y)18.34%
ROICexcg growth 3Y6.79%
ROICexcg growth 5Y8.28%
ROICexc growth 3Y-0.14%
ROICexc growth 5Y0.92%
OM growth 3Y1.16%
OM growth 5Y2.03%
PM growth 3Y-3.75%
PM growth 5Y-1.79%
GM growth 3Y0.11%
GM growth 5Y0.12%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 47.66% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 103.65 | ||
| Cash Conversion | 66.1% | ||
| Profit Quality | 107.6% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 5.41 |
F-Score5
WACC7.71%
ROIC/WACC1.94
Cap/Depr(3y)62.3%
Cap/Depr(5y)54.01%
Cap/Sales(3y)2.03%
Cap/Sales(5y)1.76%
Profit Quality(3y)102%
Profit Quality(5y)128.32%
High Growth Momentum
Growth
EPS 1Y (TTM)7.34%
EPS 3Y14.87%
EPS 5Y13.41%
EPS Q2Q%27.39%
EPS Next Y22.04%
EPS Next 2Y16.58%
EPS Next 3Y14.76%
EPS Next 5Y13.09%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y19.21%
Revenue growth 5Y15.38%
Sales Q2Q%7.26%
Revenue Next Year7.72%
Revenue Next 2Y9.14%
Revenue Next 3Y9.07%
Revenue Next 5Y8.74%
EBIT growth 1Y35.65%
EBIT growth 3Y20.59%
EBIT growth 5Y17.72%
EBIT Next Year42.6%
EBIT Next 3Y19.35%
EBIT Next 5Y16.58%
FCF growth 1Y33.32%
FCF growth 3Y1.22%
FCF growth 5Y19.69%
OCF growth 1Y22.3%
OCF growth 3Y2.94%
OCF growth 5Y15.82%