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Reply SPA
(REY)
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Rating:81Outperform
Price Target:
€135.00
▲(35.14% Upside)
Action:Reiterated
Date:05/22/26
Overall score reflects strong financial quality (low leverage, solid ROE, consistent growth) and attractive valuation (low P/E with a dividend), partially offset by uneven margins/free-cash-flow consistency and somewhat stretched near-term technical momentum.
Positive Factors
Consistent revenue growth
Stable multi-year revenue expansion to €2.48B through 2025 indicates durable demand for Reply's digital transformation services. Consistent top-line growth supports scale benefits, ongoing investment in capabilities, and deeper client relationships that sustain project pipelines over the medium term.
Negative Factors
Margin and gross-profit volatility
Material year-to-year swings in gross and related margins reduce predictability of profitability. For a services firm, persistent margin volatility can reflect mix shifts, pricing pressure, or cost overruns, complicating long-term margin improvement and making margin planning and sustainable margin expansion more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Stable multi-year revenue expansion to €2.48B through 2025 indicates durable demand for Reply's digital transformation services. Consistent top-line growth supports scale benefits, ongoing investment in capabilities, and deeper client relationships that sustain project pipelines over the medium term.
Read all positive factors
Reply SPA (REY) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€4.09B
Dividend Yield1.23%
Average Volume (3M)79.23K
Price to Earnings (P/E)15.9
Beta (1Y)0.61
Revenue Growth6.69%
EPS Growth9.29%
CountryIT
Employees16,057
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)6.71
Shares Outstanding37,411,427
10 Day Avg. Volume70,835
30 Day Avg. Volume79,227
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)2.88
Price to Sales (P/S)1.73
P/FCF Ratio15.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€150.67Price Target Upside50.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)7.66
Revenue Forecast (FY)€2.71B
Reply SPA Business Overview & Revenue Model
Company Description
Reply S.p.A., established in Turin, Italy, in 1995, is a global information technology service provider offering a comprehensive suite of solutions. The company specializes in strategic consulting, seamless system integration, efficient applicatio...
How the Company Makes Money
Reply makes money primarily by delivering professional services and technology projects for enterprises. Its revenue model is largely services-based and includes: (1) Consulting and project delivery fees: income from advisory, solution design, cus...
Reply SPA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.48B | 2.30B | 2.12B | 1.89B | 1.48B |
| Gross Profit | 356.28M | 883.48M | 828.09M | 768.97M | 647.64M |
| EBITDA | 472.57M | 391.30M | 345.00M | 333.25M | 266.46M |
| Net Income | 250.89M | 211.14M | 186.70M | 191.02M | 150.67M |
Balance Sheet | |||||
| Total Assets | 2.77B | 2.63B | 2.37B | 2.23B | 1.85B |
| Cash, Cash Equivalents and Short-Term Investments | 641.94M | 536.53M | 414.50M | 312.50M | 360.84M |
| Total Debt | 174.36M | 188.52M | 211.72M | 243.07M | 167.63M |
| Total Liabilities | 1.27B | 1.33B | 1.26B | 1.26B | 1.03B |
| Stockholders Equity | 1.49B | 1.30B | 1.11B | 970.29M | 813.27M |
Cash Flow | |||||
| Free Cash Flow | 280.13M | 301.06M | 220.53M | 142.80M | 170.46M |
| Operating Cash Flow | 326.01M | 349.44M | 249.79M | 184.57M | 207.58M |
| Investing Cash Flow | -136.29M | -150.57M | -40.69M | -234.35M | -160.09M |
| Financing Cash Flow | -104.54M | -90.76M | -88.75M | -1.65M | -65.31M |
Reply SPA Technical Analysis
Positive
99.90
Price Trends
99.35
Positive
93.89
Positive
101.24
Positive
Market Momentum
3.14
Negative
68.97
Neutral
81.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:REY, the sentiment is Positive. The current price of 99.9 is above the 20-day moving average (MA) of 99.48, above the 50-day MA of 99.35, and below the 200-day MA of 101.24, indicating a bullish trend. The MACD of 3.14 indicates Negative momentum. The RSI at 68.97 is Neutral, neither overbought nor oversold. The STOCH value of 81.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:REY.
Reply SPA Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | €4.09B | 15.94 | 17.62% | 1.35% | 6.69% | 9.29% | |
70 Outperform | €193.34M | 26.03 | ― | 0.69% | ― | ― | |
66 Neutral | €544.62M | 25.30 | 14.26% | 0.77% | 24.82% | 36.04% | |
58 Neutral | €1.43B | 19.79 | 15.24% | 1.08% | 10.91% | 16.01% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | €690.21M | -14.89 | -15.09% | ― | -5.69% | -379.74% |
* General Sector Average
IT:REY
Reply SPA
116.80
-12.98
-10.00%
IT:SES
Sesa S.p.A.
95.70
30.10
45.89%
IT:TXT
TXT e solutions SPA
47.35
14.81
45.51%
IT:TNXT
Tinexta SpA
15.00
0.61
4.24%
IT:SYS
Sys-dat S.P.A.
6.28
0.33
5.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.