Porsche (P911) is a profitability and cash flow leader among luxury car stocks (incl. mass luxury), right behind Ferrari (the latter being grossly overvalued from an intrinsic value point of view).
- Porsche is consistently one of the world’s most valuable auto brands and enjoys premium pricing and customer loyalty.
- Margins for Porsche are robust and consistently support strong FCF, the cyclical dip which we expect during upcoming ER (end of July '25) will be offset by new 2026-27 product lineup, in which we would LOVE to see BOLD moves like announcing the production of Porsche's urban VAN (EV vision) ideally in both Passenger / Active lifestyle "versions" => we do consider launch of such products as a game changer coupled with the opportunity to foster innovation, creativity in the luxury car segment which is needed to attract younger buyers and protect the brand from economic downturns and short-term cyclical swings than ultra-luxury market.
- Porsche's prudent leverage and Balance sheet strength stands out compared to peers.
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