BIT:REY

Stock Analysis Report

Executive Summary

Reply S.p.A. provides consulting, system integration, application management, and business process outsourcing services in Italy and internationally.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Share Price & News

How has Reply's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

REY

2.1%

IT IT

3.1%

IT Market


1 Year Return

8.9%

REY

8.2%

IT IT

8.8%

IT Market

Return vs Industry: REY matched the Italian IT industry which returned 8.2% over the past year.

Return vs Market: REY matched the Italian Market which returned 8.8% over the past year.


Shareholder returns

REYIndustryMarket
7 Day3.4%2.1%3.1%
30 Day10.4%2.7%0.06%
90 Day-4.1%-3.6%-0.2%
1 Year9.8%8.9%9.2%8.2%13.6%8.8%
3 Year100.2%95.9%91.8%87.5%29.2%11.3%
5 Year309.3%293.8%157.4%129.7%23.6%-25.3%

Price Volatility Vs. Market

How volatile is Reply's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reply undervalued compared to its fair value and its price relative to the market?

20.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: REY (€57.4) is trading above our estimate of fair value (€25.94)

Significantly Undervalued: REY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: REY is good value based on its PE Ratio (20.8x) compared to the IT industry average (31.6x).

PE vs Market: REY is poor value based on its PE Ratio (20.8x) compared to the Italian market (17x).


Price to Earnings Growth Ratio

Low PEG Ratio: REY is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: REY is overvalued based on its PB Ratio (4.1x) compared to the IT IT industry average (3.5x).


Next Steps

Future Growth

How is Reply forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REY's forecast earnings growth (10% per year) is above the savings rate (2.9%).

Earnings vs Market: REY's earnings (10% per year) are forecast to grow faster than the Italian market (8.6% per year).

High Growth Earnings: REY's earnings are forecast to grow, but not significantly.

Revenue vs Market: REY's revenue (8.3% per year) is forecast to grow faster than the Italian market (3.1% per year).

High Growth Revenue: REY's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: REY's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has Reply performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: REY's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: REY's earnings growth over the past year (16.6%) is below its 5-year average (17.9% per year).

Earnings vs Industry: REY earnings growth over the past year (16.6%) exceeded the IT industry 10%.


Return on Equity

High ROE: REY's Return on Equity (20.3%) is considered high.


Return on Assets

ROA vs Industry: REY has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: REY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Reply's financial position?


Financial Position Analysis

Short Term Liabilities: REY's short term assets (€623.7M) exceeds its short term liabilities (€388.3M)

Long Term Liabilities: REY's short term assets (623.7M) exceeds its long term liabilities (198.8M)


Debt to Equity History and Analysis

Debt Level: REY's debt to equity ratio (9.6%) is considered satisfactory

Reducing Debt: REY's debt to equity ratio has reduced from 24.6% to 9.6% over the past 5 years.

Debt Coverage: REY's debt is well covered by operating cash flow (273.1%).

Interest Coverage: REY's interest payments on its debt are well covered by EBIT (58.5x coverage).


Balance Sheet

Inventory Level: REY has a high level of physical assets or inventory.

Debt Coverage by Assets: REY's debt is covered by short term assets (assets are 12.496530x debt).


Next Steps

Dividend

What is Reply's current dividend yield, its reliability and sustainability?

0.78%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.1%markettop25%4.4%industryaverage1.8%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: REY's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (2.06%).

High Dividend: REY's dividend (0.78%) is low compared to the top 25% of dividend payers in the Italian market (4.41%).

Stable Dividend: REY is not paying a notable dividend for the Italian market, therefore no need to check if payments are stable.

Growing Dividend: REY is not paying a notable dividend for the Italian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: REY is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of REY's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

What is the CEO of Reply's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Mario Rizzante (71yo)

0yrs

Tenure

€330,000

Compensation

Mr. Mario Rizzante is the Co-Founder of Reply S.p.A. and serves as its Chairman, Chief Executive Officer and President. Mr. Rizzante serves as the President of Reply at avantage (UK) Limited. He serves as  ...


CEO Compensation Analysis

Compensation vs. Market: Mario's total compensation ($USD0.00) is too low to compare against companies of similar size in the Italian market ($USD0.00).

Compensation vs Earnings: Mario's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.5yrs

Average Tenure

63yo

Average Age

Experienced Management: REY's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

63yo

Average Age

Experienced Board: REY's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Mario Rizzante (71yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: €330.00k
  • Tatiana Rizzante (49yo)

    CEO & Director

    • Tenure: 16yrs
    • Compensation: €20.00k
  • Daniele Angelucci (63yo)

    CFO, Finance & Control Manager and Executive Director

    • Tenure: 7.5yrs
    • Compensation: €585.00k
  • Riccardo Lodigiani

    Senior Partner

    • Tenure: 0yrs
  • Claudio Bombonato (73yo)

    Executive Director

    • Tenure: 11.8yrs
  • Filippo Rizzante (47yo)

    Executive Director

    • Tenure: 7.5yrs
    • Compensation: €442.00k
  • Edoardo Dezani

    Head of Internal Audit Department

    • Tenure: 4.5yrs
  • Domnick Parretta

    • Tenure: 1.5yrs
  • Justin Jackson

    • Tenure: 1.5yrs
  • Maria Previtera

    Executive Director

    • Tenure: 1.5yrs

Board Members

  • Mario Rizzante (71yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: €330.00k
  • Fausto Forti (70yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: €14.00k
  • Tatiana Rizzante (49yo)

    CEO & Director

    • Tenure: 16yrs
    • Compensation: €20.00k
  • Daniele Angelucci (63yo)

    CFO, Finance & Control Manager and Executive Director

    • Tenure: 7.5yrs
    • Compensation: €585.00k
  • Claudio Bombonato (73yo)

    Executive Director

    • Tenure: 11.8yrs
  • Filippo Rizzante (47yo)

    Executive Director

    • Tenure: 7.5yrs
    • Compensation: €442.00k
  • Dina Ravera (53yo)

    Independent Director

    • Tenure: 1.5yrs
  • Maria Previtera

    Executive Director

    • Tenure: 1.5yrs
  • Francesco Chiappetta

    Independent Director

    • Tenure: 1.5yrs
  • Giorgio Mosci

    President of Statutory Auditors

    • Tenure: 1.5yrs

Company Information

Reply S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reply S.p.A.
  • Ticker: REY
  • Exchange: BIT
  • Founded: 1996
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €2.147b
  • Shares outstanding: 37.41m
  • Website: https://www.reply.eu

Number of Employees


Location

  • Reply S.p.A.
  • Corso Francia, 110
  • Turin
  • Turin
  • 10143
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REYBIT (Borsa Italiana)YesOrdinary SharesITEURDec 2000
REJADB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2000
0RV0LSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2000
RPYT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2000
REYMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2000

Biography

Reply S.p.A. provides consulting, system integration, application management, and business process outsourcing services in Italy and internationally. The company implements solutions based on communication ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:39
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.