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 Analysis

Flawless balance sheet with acceptable 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

Stable Share Price: REY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.3%

REY

10.1%

IT IT

3.5%

IT Market


1 Year Return

7.0%

REY

6.7%

IT IT

-22.4%

IT Market

Return vs Industry: REY exceeded the Italian IT industry which returned 1.7% over the past year.

Return vs Market: REY exceeded the Italian Market which returned -23.9% over the past year.


Shareholder returns

REYIndustryMarket
7 Day8.3%10.1%3.5%
30 Day-0.3%-5.9%-11.8%
90 Day-12.7%1.5%-26.2%
1 Year7.8%7.0%7.7%6.7%-19.0%-22.4%
3 Year67.6%64.1%50.0%46.6%-8.8%-18.0%
5 Year164.3%154.3%62.7%45.8%-22.6%-40.9%

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?

19.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REY (€60.3) is trading above our estimate of fair value (€35.96)

Significantly Below Fair Value: 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 (19.8x) compared to the IT industry average (31.3x).

PE vs Market: REY is poor value based on its PE Ratio (19.8x) compared to the Italian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: REY is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: REY is overvalued based on its PB Ratio (3.9x) compared to the IT IT industry average (2.6x).


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REY's forecast earnings growth (6.2% per year) is above the savings rate (1.2%).

Earnings vs Market: REY's earnings (6.2% per year) are forecast to grow slower than the Italian market (11.6% per year).

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

Revenue vs Market: REY's revenue (6.9% per year) is forecast to grow faster than the Italian market (-0.04% per year).

High Growth Revenue: REY's revenue (6.9% 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 (16%).


Next Steps

Past Performance

How has Reply performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REY has high quality earnings.

Growing Profit Margin: REY's current net profit margins (9.4%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: REY's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: REY's earnings growth over the past year (14%) is below its 5-year average (17.3% per year).

Earnings vs Industry: REY earnings growth over the past year (14%) exceeded the IT industry 4%.


Return on Equity

High ROE: REY's Return on Equity (19.9%) is considered low.


Next Steps

Financial Health

How is Reply's financial position?


Financial Position Analysis

Short Term Liabilities: REY's short term assets (€789.7M) exceed its short term liabilities (€498.8M).

Long Term Liabilities: REY's short term assets (€789.7M) exceed its long term liabilities (€222.1M).


Debt to Equity History and Analysis

Debt Level: REY's debt to equity ratio (7.5%) is considered satisfactory.

Reducing Debt: REY's debt to equity ratio has reduced from 29.3% to 7.5% over the past 5 years.

Debt Coverage: REY's debt is well covered by operating cash flow (462.3%).

Interest Coverage: REY's interest payments on its debt are well covered by EBIT (39.3x coverage).


Balance Sheet


Next Steps

Dividend

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

0.86%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: REY's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (2.29%).

High Dividend: REY's dividend (0.86%) is low compared to the top 25% of dividend payers in the Italian market (5.61%).


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.


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

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

5.0yrs

Average management tenure


CEO

Mario Rizzante (71yo)

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: Mario's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD2.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mario Rizzante
Co-Founderno data€330.00kno data
Tatiana Rizzante
CEO & Executive Director16.5yrs€20.00kno data
Daniele Angelucci
CFO, Finance & Control Manager and Executive Director8yrs€585.00k0.31% 7.0m
Claudio Bombonato
Executive Director12.33yrsno datano data
Filippo Rizzante
Executive Director8yrs€442.00kno data
Edoardo Dezani
Head of Internal Audit Department5yrsno datano data
Maria Previtera
Executive Director2yrsno datano data
Riccardo Lodigiani
Senior Partnerno datano datano data
Domnick Parretta
2yrsno datano data
Justin Jackson
2yrsno datano data

5.0yrs

Average Tenure

63yo

Average Age

Experienced Management: REY's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mario Rizzante
Co-Founderno data€330.00kno data
Tatiana Rizzante
CEO & Executive Director16.5yrs€20.00kno data
Daniele Angelucci
CFO, Finance & Control Manager and Executive Director8yrs€585.00k0.31% 7.0m
Claudio Bombonato
Executive Director12.33yrsno datano data
Filippo Rizzante
Executive Director8yrs€442.00kno data
Maria Previtera
Executive Director2yrsno datano data
Fausto Forti
Lead Independent Directorno data€14.00kno data
Secondina Ravera
Independent Director2yrsno datano data
Francesco Chiappetta
Independent Director2yrsno datano data
Giorgio Mosci
President of Statutory Auditors2yrsno datano data

5.0yrs

Average Tenure

63yo

Average Age

Experienced Board: REY's board of directors are considered experienced (5 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 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: €2.256b
  • Shares outstanding: 37.41m
  • Website: https://www.reply.com/en/

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 channels and digital media. It provides Brick Reply, a manufacturing operations management platform for the management and control of a smart factory; Click Reply, a supply chain execution platform; Definio Reply, a technological platform for collection, analysis, control, processing, and distribution of financial data; Discovery Reply, a platform for the digital media management projects; and Gaia Reply platform for use in the field of mobility and multimedia. The company also offers Hi engage, a commercial contextual marketing solution; Pay Reply platform that provides mobile payment solutions, as well as helps banks, financial institutions and telecommunications companies, utilities, and retailers to create and deliver remote and proximity payment services; SideUp Reply, a software application for warehouse management; Starbytes, an online employment service for freelancers and ICT specialists; TamTamy, a software solution to create and develop enterprise social networks and communities; and Ticuro Reply platform that measures and interprets personal health information and daily activities. In addition, it provides cloud-based ERP, brand engagement, digital agency, IoT advanced incubator, financial risk management, digital transformation, enterprise content management, customer experience agency, Oracle technology, SAP, and e-commerce solutions; digital touch point solutions; and custom business applications and process integration solutions. Reply S.p.A. serves automotive, defense and aerospace, energy and utilities, financial services, logistics and manufacturing, public sector and healthcare, retail and consumer products, and telco and media industries. The company was founded in 1996 and is headquartered in Turin, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 22:03
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.