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Reply SPA (IT:REY)
:REY

Reply SPA (REY) AI Stock Analysis

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Reply SPA

(LSE:REY)

Rating:74Outperform
Price Target:
€169.00
▲(12.37%Upside)
Reply SPA's strong financial performance is the most significant factor, indicating robust growth, profitability, and financial health. Technical analysis suggests stable short-term trends with caution due to potential bearish momentum. Valuation metrics indicate the stock may be overvalued, providing limited income from dividends.
Positive Factors
Financial Performance
Reply reported surprisingly strong 4Q24 margins and cash generation, with EBITDA significantly above expectations across all business areas.
Market Opportunity
Artificial Intelligence is seen as a big market opportunity for Reply, with enormous potential to drive future business transformation.
Strategic Positioning
Reply is expected to remain a strong investment opportunity due to its positioning in the IT consulting sector, which is anticipated to grow significantly with advancements in Artificial Intelligence.
Negative Factors
Market Environment
Reply is gaining market share in segments facing a tough environment, such as automotive, through technology-driven productivity increases.

Reply SPA (REY) vs. iShares MSCI Italy ETF (EWI)

Reply SPA Business Overview & Revenue Model

Company DescriptionReply 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 MoneyReply 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, positioning it well within the Information Technology Services industry.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.33B2.12B1.91B1.50B1.27B
Gross Profit
451.37M401.04M296.36M257.59M207.49M
EBIT
330.42M292.75M285.47M209.28M169.53M
EBITDA
371.17M352.57M340.31M262.78M207.94M
Net Income Common Stockholders
211.14M186.70M191.02M150.67M123.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
536.53M414.50M312.50M360.84M335.93M
Total Assets
2.63B2.37B2.23B1.85B1.51B
Total Debt
188.52M211.72M243.07M167.63M177.26M
Net Debt
-303.32M-172.03M-40.62M-161.42M-156.55M
Total Liabilities
1.33B1.26B1.26B1.03B830.61M
Stockholders Equity
1.30B1.11B970.29M813.27M675.04M
Cash FlowFree Cash Flow
301.06M220.53M142.80M170.46M212.66M
Operating Cash Flow
349.44M249.79M184.57M207.58M229.03M
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
Positive
Last Price150.40
Price Trends
50DMA
149.45
Positive
100DMA
152.82
Negative
200DMA
147.89
Positive
Market Momentum
MACD
-0.88
Negative
RSI
52.96
Neutral
STOCH
69.62
Neutral
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 150.4 is above the 20-day moving average (MA) of 148.69, above the 50-day MA of 149.45, and above the 200-day MA of 147.89, indicating a bullish trend. The MACD of -0.88 indicates Negative momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 69.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:REY.

Reply SPA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITREY
74
Outperform
€5.46B25.9417.49%0.77%8.40%13.09%
62
Neutral
$11.75B10.58-7.10%2.91%7.47%-7.95%
€1.22B18.5815.23%1.27%
€412.29M24.6912.73%0.71%
DE7T4
€517.20M28.244.41%3.96%
DE9PC
€436.85M43.6925.87%1.91%
ITDGV
74
Outperform
€279.49M7.78
3.46%-3.76%-9.21%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:REY
Reply SPA
150.40
14.85
10.95%
GB:0QHK
Sesa S.p.A.
78.95
-28.33
-26.41%
GB:0NLD
TXT e solutions SPA
34.65
13.25
61.92%
DE:7T4
Tinexta SpA
11.60
-5.36
-31.60%
DE:9PC
WIIT SpA
15.72
-1.09
-6.48%
IT:DGV
Digital Value SpA
26.70
-34.42
-56.32%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.