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REY

Reply BIT:REY Stock Report

Last Price

€115.20

Market Cap

€4.3b

7D

9.0%

1Y

-16.5%

Updated

24 Jun, 2022

Data

Company Financials +
REY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

REY Stock Overview

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

Rewards

Earnings are forecast to grow 11.99% per year

Earnings have grown 15.2% per year over the past 5 years

Risk Analysis

No risks detected for REY from our risk checks.

Reply Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Reply
Historical stock prices
Current Share Price€115.20
52 Week High€187.90
52 Week Low€100.20
Beta1.18
1 Month Change-4.00%
3 Month Change-23.66%
1 Year Change-16.52%
3 Year Change92.16%
5 Year Change184.80%
Change since IPO2,780.00%

Recent News & Updates

Jun 23
Are Reply S.p.A. (BIT:REY) Investors Paying Above The Intrinsic Value?

Are Reply S.p.A. (BIT:REY) Investors Paying Above The Intrinsic Value?

Today we will run through one way of estimating the intrinsic value of Reply S.p.A. ( BIT:REY ) by projecting its...

Jun 10
At €118, Is Reply S.p.A. (BIT:REY) Worth Looking At Closely?

At €118, Is Reply S.p.A. (BIT:REY) Worth Looking At Closely?

Reply S.p.A. ( BIT:REY ), is not the largest company out there, but it saw significant share price movement during...

Shareholder Returns

REYIT ITIT Market
7D9.0%3.8%1.1%
1Y-16.5%-46.8%-15.6%

Return vs Industry: REY exceeded the Italian IT industry which returned -48.1% over the past year.

Return vs Market: REY matched the Italian Market which returned -17.2% over the past year.

Price Volatility

Is REY's price volatile compared to industry and market?
REY volatility
REY Average Weekly Movement5.5%
IT Industry Average Movement5.5%
Market Average Movement5.1%
10% most volatile stocks in IT Market7.1%
10% least volatile stocks in IT Market3.3%

Stable Share Price: REY is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: REY's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199510,579Mario Rizzantehttps://www.reply.com/en/

Reply S.p.A. provides consulting, system integration, application management, and business process outsourcing services in Italy and internationally. The company concepts, designs, develops, and implements solutions based on communication channels and digital media. It offers Axulus, an accelerator for the Industrial Internet of Thing; Brick Reply, a platform for digital transformation of industrial operations; China Beats, a market intelligence and social listening platform solution; Discovery Reply, an enterprise digital experience management platform; Logistics Execution Architecture Reply, a digital platform for agile and connected supply chains; and Pulse Reply, a solution that combines data science and marketing intelligence activities in an agile dashboard.

Reply Fundamentals Summary

How do Reply's earnings and revenue compare to its market cap?
REY fundamental statistics
Market Cap€4.30b
Earnings (TTM)€150.67m
Revenue (TTM)€1.50b

28.5x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REY income statement (TTM)
Revenue€1.50b
Cost of Revenue€1.24b
Gross Profit€262.28m
Other Expenses€111.60m
Earnings€150.67m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)4.04
Gross Margin17.47%
Net Profit Margin10.04%
Debt/Equity Ratio4.7%

How did REY perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

20%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is REY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for REY?

Other financial metrics that can be useful for relative valuation.

REY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA17.9x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

How does REY's PE Ratio compare to its peers?

REY PE Ratio vs Peers
The above table shows the PE ratio for REY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average72.2x

Price-To-Earnings vs Peers: REY is good value based on its Price-To-Earnings Ratio (28.5x) compared to the peer average (72.2x).


Price to Earnings Ratio vs Industry

How does REY's PE Ratio compare vs other companies in the IT Industry?

Price-To-Earnings vs Industry: REY is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the Italian IT industry average (25x)


Price to Earnings Ratio vs Fair Ratio

What is REY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.5x
Fair PE Ratio35.2x

Price-To-Earnings vs Fair Ratio: REY is good value based on its Price-To-Earnings Ratio (28.5x) compared to the estimated Fair Price-To-Earnings Ratio (35.2x).


Share Price vs Fair Value

What is the Fair Price of REY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: REY (€115.2) is trading above our estimate of fair value (€87.03)

Significantly Below Fair Value: REY is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: REY is poor value based on its PEG Ratio (2.4x)


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Future Growth

How is Reply forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REY's forecast earnings growth (12% per year) is above the savings rate (1.7%).

Earnings vs Market: REY's earnings (12% per year) are forecast to grow faster than the Italian market (10.2% per year).

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

Revenue vs Market: REY's revenue (12.2% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: REY's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REY's Return on Equity is forecast to be low in 3 years time (17.8%).


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Past Performance

How has Reply performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: REY has high quality earnings.

Growing Profit Margin: REY's current net profit margins (10%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: REY's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: REY's earnings growth over the past year (21.9%) exceeds its 5-year average (15.2% per year).

Earnings vs Industry: REY earnings growth over the past year (21.9%) underperformed the IT industry 39.2%.


Return on Equity

High ROE: REY's Return on Equity (18.7%) is considered low.


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Financial Health

How is Reply's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: REY's short term assets (€984.6M) exceed its short term liabilities (€708.6M).

Long Term Liabilities: REY's short term assets (€984.6M) exceed its long term liabilities (€322.6M).


Debt to Equity History and Analysis

Debt Level: REY has more cash than its total debt.

Reducing Debt: REY's debt to equity ratio has reduced from 19.2% to 4.7% over the past 5 years.

Debt Coverage: REY's debt is well covered by operating cash flow (545%).

Interest Coverage: REY's interest payments on its debt are well covered by EBIT (51.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: REY's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.73%).

High Dividend: REY's dividend (0.69%) is low compared to the top 25% of dividend payers in the Italian market (5.3%).


Stability and Growth of Payments

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Mario Rizzante (73 yo)

no data

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: Insufficient data to establish whether Mario's total compensation is reasonable compared to companies of similar size in the Italian market.

Compensation vs Earnings: Insufficient data to compare Mario's compensation with company performance.


Leadership Team

Experienced Management: REY's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: REY's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Reply S.p.A.
  • Ticker: REY
  • Exchange: BIT
  • Founded: 1995
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: €4.302b
  • Shares outstanding: 37.34m
  • Website: https://www.reply.com/en/

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.