Reply SPA (REY) AI Stock Analysis

• Market Cap: €4.41B
• Dividend Yield: 0.97%
• Average Volume (3M): 78.60K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.73
• Revenue Growth: 9.04%
• EPS Growth: 13.17%
• Country: IT
• Employees: 16,057
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.34
• Shares Outstanding: 37,411,427
• 10 Day Avg. Volume: 76,552
• 30 Day Avg. Volume: 78,599
• PEG Ratio: 2.13
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 2.46
• 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: €171.75
• Price Target Upside: 45.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: €136.00 ▲(15.16% Upside)

Reply SPA's strong financial performance is the most significant factor, supported by robust growth and profitability. The technical analysis indicates a neutral trend with slight bullish momentum, while the valuation suggests the stock is reasonably priced with a modest dividend yield. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategy, supporting long-term financial stability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Margin Sustainability

Stable margins reflect effective cost control and pricing power, which are crucial for maintaining profitability over time.

Negative Factors

Mixed Technical Momentum

Mixed technical momentum may indicate uncertainty in market perception, potentially affecting investor confidence and stock performance.

Dividend Yield

A modest dividend yield may not appeal to income-focused investors, potentially limiting the investor base seeking steady income.

Lack of Earnings Call Data

Absence of earnings call data limits transparency and may hinder investor understanding of management's strategic direction.

Reply SPA Business Overview & Revenue Model

Company Description

Reply SPA (REY) is a leading consulting and services company specializing in digital transformation, providing innovative solutions across various sectors including telecommunications, financial services, manufacturing, and public administration. The company focuses on leveraging advanced technologies such as artificial intelligence, big data analytics, and cloud computing to enhance business processes and improve customer experiences. Core products and services include consulting, systems integration, application development, and digital marketing solutions, aimed at helping organizations navigate the complexities of the digital landscape.

How the Company Makes Money

Reply SPA generates revenue through multiple streams, primarily by providing consulting services and technology solutions to its clients. The company's revenue model is built around project-based contracts, where it charges fees for its expertise in digital transformation initiatives. Key revenue streams include consulting fees, software development services, and maintenance contracts. Additionally, Reply SPA has established significant partnerships with leading technology providers, which allows them to offer integrated solutions and enhance their service offerings. These partnerships not only expand their market reach but also contribute to a stable source of recurring revenue through joint projects and collaborations.

Reply SPA Financial Statement Overview

Summary

Reply SPA demonstrates strong financial performance with robust revenue growth and stable profit margins. The company exhibits a solid balance sheet with low leverage and impressive cash flow generation, indicating strong financial health.

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	1.82B	2.33B	2.12B	1.91B	1.50B	1.27B
Gross Profit	513.17M	451.37M	401.04M	296.36M	257.59M	207.49M
EBITDA	396.46M	371.17M	356.08M	340.31M	266.46M	207.94M
Net Income	157.33M	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: 118.10
• 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 118.1 is below the 20-day moving average (MA) of 121.26, below the 50-day MA of 121.37, and below the 200-day MA of 142.37, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.75 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	73 Outperform	€4.41B	18.72	18.54%	0.97%	9.04%	13.17%
DGV	71 Outperform	€303.41M	16.10	―	2.74%	-24.28%	-57.55%
SES	70 Outperform	€1.28B	20.39	13.73%	1.21%	3.50%	-19.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TXT	61 Neutral	€379.94M	22.53	13.06%	0.78%	39.23%	0.77%
TNXT	60 Neutral	€683.79M	170.68	1.04%	2.01%	17.21%	-80.93%
WIIT	57 Neutral	€492.84M	49.07	31.22%	1.61%	20.75%	-9.34%