Reply SPA (REY) AI Stock Analysis

• Market Cap: €5.36B
• Dividend Yield: 0.69%
• Average Volume (3M): 55.56K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.84
• Revenue Growth: 8.40%
• EPS Growth: 13.09%
• Country: IT
• Employees: 16,057
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 37,411,427
• 10 Day Avg. Volume: 33,791
• 30 Day Avg. Volume: 55,564
• PEG Ratio: 0.76
• Price to Book (P/B): 4.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.91
• 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: €177.50
• Price Target Upside: 23.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: €160.00 ▲(11.34%Upside)

Reply SPA's strong financial performance is the most significant factor, driven by robust growth and profitability. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. Together, these factors lead to a moderate overall stock score.

Positive Factors

Artificial Intelligence

Artificial Intelligence is seen as a big market opportunity for Reply, with enormous potential to drive future business transformation.

Financial Performance

Reply reported surprisingly strong 4Q24 margins and cash generation, with EBITDA significantly above expectations across all business areas.

Market Positioning

Reply is positioned as a winning player in guiding its client companies through AI transformation, leveraging its agile business model to absorb and deploy radical innovation.

Negative Factors

Market Environment

Reply is gaining market share in segments facing a tough environment, such as automotive, through technology-driven productivity increases.

Technological Paradigms

Working with tech giants allows Reply to remain at the forefront of knowledge in emerging fields, hedging the risk of one technological paradigm prevailing over another.

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 the provision of consulting and digital services to a diverse range of industries, including telecommunications, financial services, manufacturing, and retail. Their revenue model is primarily based on project-based consulting fees, systems integration services, and ongoing managed services contracts. The company also leverages its expertise in emerging technologies to offer bespoke solutions tailored to client needs, which often leads to long-term partnerships and recurring revenue streams. Additionally, Reply SPA collaborates with leading technology partners to enhance its service offerings and expand its market reach.

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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.33B	2.12B	1.91B	1.50B	1.27B
Gross Profit	451.37M	401.04M	296.36M	257.59M	207.49M
EBITDA	371.17M	352.57M	340.31M	262.78M	207.94M
Net Income	211.14M	186.70M	191.02M	150.67M	123.60M
Balance Sheet
Total Assets	2.63B	2.37B	2.23B	1.85B	1.51B
Cash, Cash Equivalents and Short-Term Investments	536.53M	414.50M	312.50M	360.84M	335.93M
Total Debt	188.52M	211.72M	243.07M	167.63M	177.26M
Total Liabilities	1.33B	1.26B	1.26B	1.03B	830.61M
Stockholders Equity	1.30B	1.11B	970.29M	813.27M	675.04M
Cash Flow
Free Cash Flow	301.06M	220.53M	142.80M	170.46M	212.66M
Operating Cash Flow	349.44M	249.79M	184.57M	207.58M	229.03M
Investing Cash Flow	-150.57M	-40.69M	-234.35M	-160.09M	-76.55M
Financing Cash Flow	-90.76M	-88.75M	-1.65M	-65.31M	-59.55M

Reply SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 143.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 143.7 is below the 20-day moving average (MA) of 146.11, below the 50-day MA of 148.75, and below the 200-day MA of 148.57, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 34.09 is Neutral, 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	70 Outperform	€5.36B	25.44	17.49%	0.69%	8.40%	13.09%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
0QHK		€1.31B	20.01	15.23%	1.17%	―	―
0NLD		€398.17M	24.12	12.73%	0.64%	―	―
7T4		€576.86M	30.98	4.41%	2.10%	―	―
9PC		€407.79M	40.69	25.87%	1.66%	―	―
DGV	83 Outperform	€306.47M	8.66		3.16%	-3.76%	-9.21%