Reply SPA (REY) AI Stock Analysis

• Market Cap: €2.94B
• Dividend Yield: 1%
• Average Volume (3M): 79.23K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.57
• Revenue Growth: 9.04%
• EPS Growth: 13.17%
• Country: IT
• Employees: 16,057
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.37
• Shares Outstanding: 37,411,427
• 10 Day Avg. Volume: 70,835
• 30 Day Avg. Volume: 79,227
• PEG Ratio: 2.13
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 19.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €157.33
• Price Target Upside: 99.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 7.31
• Revenue Forecast (FY): €2.65B

• Rating: 74 Outperform
• Price Target: €115.00 ▲(46.03% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Reply SPA's strong financial performance is the primary driver of its overall score, supported by solid profitability and cash flow generation. The technical analysis indicates short-term stability but potential long-term weakness, while the valuation suggests the stock is fairly priced with a modest dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Sustained revenue and margin trends

Consistent revenue expansion paired with stable gross margins and improving net margins indicates durable operational strength. This suggests pricing power, repeatable delivery efficiency, and the ability to sustain profitability through normal business cycles, supporting reinvestment and resilient earnings.

Strong free cash flow generation

Robust free cash flow and high cash conversion from earnings provide long-term flexibility to fund capex, R&D, M&A, and shareholder returns without overreliance on external financing. This cash resilience enhances strategic optionality and buffers the company during demand slowdowns.

Conservative leverage and strong ROE

Low leverage and healthy equity ratios reduce solvency risk and lower financial distress probability. Strong ROE signals efficient capital use, enabling sustained investment in growth initiatives and making the company more resilient to macro shocks while preserving borrowing capacity.

Negative Factors

Project-based revenue reliance

Heavy reliance on project and custom-consulting work creates structurally lumpy revenue and utilization variability. Over the medium term this limits predictability, can compress margins during demand slowdowns, and raises dependency on continuous new client wins and high utilization rates.

Labor-intensive model implies utilization risk

A large employee base reflects a people-driven delivery model; margins and profitability hinge on utilization and billing realization. Persistent underutilization or higher non-billable time can materially depress margins over months, making cost discipline and resource planning critical.

Limited investor communications / guidance

Absent or limited earnings call disclosure and formal guidance reduces transparency about forward plans and execution risks. Over time this can hinder investor confidence, obscure visibility into backlog or pipeline quality, and make market assessment of strategic progress more difficult.

Reply SPA Business Overview & Revenue Model

Company Description

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. The company also provides Sonar Reply, a solution for data-driven trend research; TamTamy, an enterprise social network solution for communication, collaboration, and education through social media; Ticuro Reply, a platform solution for the connection of medical devices, as well as wearable and environmental sensors; and X-RAIS Reply, a reply artificial intelligence solution to support radiological diagnosis processes. It serves automotive, energy and utilities, financial services, logistics and manufacturing, public sector and healthcare, retail and consumer products, and telco and media industries. The company has a strategic collaboration agreement with Amazon Web Services. Reply S.p.A. was founded in 1995 and is headquartered in Turin, Italy.

How the Company Makes Money

Reply SPA generates revenue through multiple streams, primarily by offering consulting services and custom software development to businesses seeking digital transformation. The company charges clients for project-based work, ongoing maintenance contracts, and subscription-based services for its proprietary software solutions. Additionally, Reply benefits from strategic partnerships with leading technology providers, enabling it to offer cutting-edge solutions and expand its market reach. These partnerships often lead to joint ventures or collaborative projects, further enhancing revenue potential. The company's ability to innovate and adapt to emerging technologies also contributes to its earnings by attracting new clients and retaining existing ones.

Reply SPA Financial Statement Overview

Summary

Reply SPA presents a strong financial profile with robust growth, solid profitability, and conservative leverage. The company's financial health is supported by stable margins, efficient equity use, and strong cash flow generation, positioning it well within the Information Technology Services industry.

Income Statement

Reply SPA demonstrates strong revenue growth with a consistent upward trend. The gross profit margin has been stable, indicating good cost management. The net profit margin has been improving, reflecting enhanced operational efficiency. Strong EBIT and EBITDA margins further highlight the company's profitability and operational strength.

Balance Sheet

The debt-to-equity ratio is low, suggesting a conservative capital structure with manageable leverage. The return on equity (ROE) is robust, indicating efficient use of equity in generating profits. The equity ratio is healthy, reflecting a solid financial position with a significant portion of assets financed by equity.

Cash Flow

Reply SPA has shown impressive free cash flow growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio is favorable, demonstrating effective cash conversion from profits. The free cash flow to net income ratio suggests that the company efficiently translates its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	2.30B	2.12B	1.89B	1.48B	1.25B
Gross Profit	926.84M	883.48M	828.09M	768.97M	647.64M	528.17M
EBITDA	416.04M	379.79M	328.15M	320.86M	239.96M	188.53M
Net Income	235.95M	211.14M	186.70M	191.02M	150.67M	123.60M
Balance Sheet
Total Assets	2.47B	2.63B	2.37B	2.23B	1.85B	1.51B
Cash, Cash Equivalents and Short-Term Investments	535.10M	536.53M	414.50M	312.50M	360.84M	335.93M
Total Debt	173.03M	188.52M	211.72M	243.07M	167.63M	177.26M
Total Liabilities	1.11B	1.33B	1.26B	1.26B	1.03B	830.61M
Stockholders Equity	1.36B	1.30B	1.11B	970.29M	813.27M	675.04M
Cash Flow
Free Cash Flow	313.19M	301.06M	220.53M	142.80M	170.46M	212.66M
Operating Cash Flow	360.39M	349.44M	249.79M	184.57M	207.58M	229.03M
Investing Cash Flow	-194.57M	-150.57M	-40.69M	-234.35M	-160.09M	-76.55M
Financing Cash Flow	-100.93M	-90.76M	-88.75M	-1.65M	-65.31M	-59.55M

Reply SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:REY, the sentiment is Negative. The current price of 78.75 is below the 20-day moving average (MA) of 88.25, below the 50-day MA of 97.91, and below the 200-day MA of 118.87, indicating a bearish trend. The MACD of -4.44 indicates Positive momentum. The RSI at 32.19 is Neutral, neither overbought nor oversold. The STOCH value of 4.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:REY.

Reply SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REY	74 Outperform	€2.94B	17.10	18.54%	1.00%	9.04%	13.17%
DGV	71 Outperform	€296.29M	13.32	―	2.82%	-24.28%	-57.55%
SES	63 Neutral	€1.11B	12.37	15.29%	1.15%	9.50%	0.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TXT	61 Neutral	€362.88M	17.01	11.82%	0.80%	28.77%	-3.40%
WIIT	61 Neutral	€723.67M	54.11	33.79%	1.54%	13.74%	-23.30%
TNXT	51 Neutral	€687.00M	-15.45	-1.19%	2.02%	14.90%	-123.79%