Reply SPA (REY) AI Stock Analysis

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IT:REY Dividends

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Reply SPA

(LSE:REY)

74Outperform

Reply SPA exhibits strong financial performance, characterized by robust growth and profitability, supported by efficient cash flow management. However, technical indicators show mixed signals, with a negative MACD and overbought Stochastic, affecting the stock's momentum. The valuation appears high with a P/E ratio above industry norms, and the low dividend yield may not appeal to income investors. Overall, while the company's financial health is solid, caution is advised due to technical and valuation concerns.

Positive Factors

Financial Performance

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

Market Position

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

Negative Factors

Competitive Environment

The automotive segment is facing a tough environment, indicating challenges despite technology-driven productivity increases.

Reply SPA (REY) vs. S&P 500 (SPY)

Market Cap

€5.92B

Dividend Yield0.63%

Average Volume (3M)32.83K

Price to Earnings (P/E)28.1

Beta (1Y)0.95

Revenue Growth8.40%

EPS Growth13.09%

CountryIT

Employees15,667

SectorTechnology

Sector Strength65

IndustryInformation Technology Services

Share Statistics

EPS (TTM)2.98

Shares Outstanding37,411,427

10 Day Avg. Volume28,562

30 Day Avg. Volume32,834

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€177.40

Price Target Upside13.43% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Reply SPA Business Overview & Revenue Model

Company DescriptionReply SPA (REY) is a multinational consulting, systems integration, and digital services company. It operates primarily in the fields of IT services, digital transformation, and business process outsourcing. The company offers a wide range of services, including consulting and development, to help businesses enhance their digital capabilities and innovate using advanced technologies such as cloud computing, artificial intelligence, and data analytics.

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

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

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

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
330.42M	292.75M	285.47M	209.28M	169.53M
	EBITDA
371.17M	352.57M	340.31M	262.78M	207.94M
	Net Income Common Stockholders
211.14M	186.70M	191.02M	150.67M	123.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
536.53M	414.50M	312.50M	360.84M	335.93M
	Total Assets
2.63B	2.37B	2.23B	1.85B	1.51B
	Total Debt
188.52M	211.72M	243.07M	167.63M	177.26M
	Net Debt
-303.32M	-172.03M	-40.62M	-161.42M	-156.55M
	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

Positive

Last Price156.40

Price Trends

50DMA

153.63

Positive

100DMA

154.82

Positive

200DMA

147.01

Positive

Market Momentum

MACD

1.39

Negative

RSI

55.91

Neutral

STOCH

87.77

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 156.4 is above the 20-day moving average (MA) of 149.28, above the 50-day MA of 153.63, and above the 200-day MA of 147.01, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 87.77 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

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REY	74 Outperform	€5.92B	28.10	17.49%	0.63%	8.40%	13.09%
DIA	72 Outperform	€5.40B	29.91	11.27%	1.16%	3.24%	17.49%
TXT	72 Outperform	€389.94M	26.76	12.06%	0.76%	35.72%	0.10%
Sector *	60 Neutral	$10.77B	10.41	-6.71%	2.99%	7.69%	-13.12%

* Technology Sector Average

Performance Comparison

IT:REY

Reply SPA

156.40

30.33

24.06%

IT:DIA

DiaSorin S.p.A.

96.80

4.53

4.91%

IT:TXT

TXT e solutions SPA

34.70

12.89

59.08%

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.