Reply SpAMIL:REY -0.46%80 Return-on-Tangible-Equity is 54.01% as of Mar. 2026, which is 23% above its 10-year median of 43.79. GuruFocus rates MIL:REY with a GF Score™ of 80/100 and a GF Value™ of €146.52 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,467 Software companies, Reply SpA ranks better than 81.19% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Reply SpA's annualized net income for the quarter that ended in Mar. 2026 was €399 Mil. Reply SpA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €739 Mil. Therefore, Reply SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 54.01%.
The historical rank and industry rank for Reply SpA's Return-on-Tangible-Equity or its related term are showing as below:
MIL:REY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 39.8 Med: 43.79 Max: 73.55
Current: 42.28
During the past 13 years, Reply SpA's highest Return-on-Tangible-Equity was 73.55%. The lowest was 39.80%. And the median was 43.79%.
MIL:REY's Return-on-Tangible-Equity is ranked better than 81.19% of 2467
companies
in the Software industry
Industry Median: 8.62
vs MIL:REY: 42.28
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Reply SpA Return-on-Tangible-Equity Related Terms
Reply SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Reply SpA's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MIL:REY vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Reply SpA's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Reply SpA Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Reply SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Reply SpA's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 54.01% mean?
Reply SpA (MIL:REY) has a Return-on-Tangible-Equity of 54.01% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Reply SpA and its competitors. This is 23% above median its historical median of 43.79. Over the past decade, Reply SpA's Return-on-Tangible-Equity has ranged from 39.80 to 73.55. According to the industry distribution chart, Reply SpA ranks #464 out of 2467 companies in the Software industry, placing it in the top 18.8%.
Is Reply SpA's Return-on-Tangible-Equity too high?
Reply SpA's current Return-on-Tangible-Equity of 54.01% is 23% above median its 10-year median of 43.79. Over the past 10 years, this metric has ranged from a low of 39.80 to a high of 73.55. The Software industry median Return-on-Tangible-Equity is 8.62. Reply SpA's value of 54.01% is 526.6% above this industry median. Based on the distribution chart, Reply SpA ranks #464 out of 2467 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Reply SpA has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reply SpA's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Reply SpA ranks #464 out of 2467 companies for Return-on-Tangible-Equity. This places Reply SpA in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.62. Reply SpA's value of 54.01% is 526.6% above this benchmark. Historically, Reply SpA's own Return-on-Tangible-Equity has ranged from 39.80 to 73.55 over the past decade. While the company's 10-year median is 43.79 vs. the industry median of 8.62, Reply SpA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.62, based on 2,467 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reply SpA's current Return-on-Tangible-Equity of 54.01% is 526.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Reply SpA and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reply SpA's current Return-on-Tangible-Equity is 54.01%, which is 23% above median its own 10-year median of 43.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reply SpA stock overvalued right now?
Based on GuruFocus' analysis, Reply SpA (MIL:REY) is currently considered Significantly Undervalued. The stock's GF Value™ is €146.52, compared to a current price of €97.50 — trading 33.5% below its estimated fair value. The current Return-on-Tangible-Equity is 54.01%, which is 23% above median its 10-year median of 43.79 and 526.6% above the Software industry median of 8.62. Reply SpA's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Reply SpA (MIL:REY), the current Return-on-Tangible-Equity is 54.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Reply SpA (MIL:REY) Overvalued in 2026?
Based on GuruFocus' analysis, Reply SpA stock appears to be undervalued.
The current stock price of €97.50 is trading 33.5% below its estimated GF Value™ of €146.52.
GuruFocus considers Reply SpA to be Significantly Undervalued.
Key valuation signals for MIL:REY:
Return-on-Tangible-Equity: 54.01% (23% above median its 10-year median of 43.79)
GF Value™: €146.52 vs. price of €97.50 (33.5% below fair value)
Industry Position: 526.6% above the Software median (#464 of 2467)
No single metric tells the full story. See the MIL:REY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reply SpA specialises in consulting, digital services, and the integration of processes, applications, and devices. Reply serves clients in the telecommunication and media, banking, insurance, financial, industry and services, energy and utilities, and public administration industries. The company provides its services mainly through platforms such as X-Rais Reply, Discovery Reply, Brick Reply, TamTamy, and SideUp Reply. Reply researches, selects, and markets solutions through channels such as data analysis, digital communication, e-commerce, mobile, and social media. Its business segments are defined based on geographical areas of operation and include Region 1 (including Italy, USA, Brazil, Poland, Romania, and Nanjing), which derives key revenue, Region 2, Region 3, and IoT Incubator.
80GF Score
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