BIT:RACE

Stock Analysis Report

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Executive Summary

Ferrari N.V., through with its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Ferrari's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RACE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

RACE

4.2%

IT Auto

-1.0%

IT Market


1 Year Return

14.7%

RACE

-16.1%

IT Auto

-12.8%

IT Market

Return vs Industry: RACE exceeded the Italian Auto industry which returned -16.1% over the past year.

Return vs Market: RACE exceeded the Italian Market which returned -12.8% over the past year.


Shareholder returns

RACEIndustryMarket
7 Day-1.8%4.2%-1.0%
30 Day-3.0%8.7%-0.8%
90 Day4.6%21.3%-0.4%
1 Year15.6%14.7%-15.9%-16.1%-10.5%-12.8%
3 Year71.1%67.2%-19.6%-30.3%-9.8%-18.0%
5 Yearn/a27.0%6.6%-0.5%-31.7%

Price Volatility Vs. Market

How volatile is Ferrari's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ferrari undervalued compared to its fair value and its price relative to the market?

57.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RACE (€159.1) is trading above our estimate of fair value (€48.64)

Significantly Below Fair Value: RACE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RACE is poor value based on its PE Ratio (57.5x) compared to the XE Auto industry average (18x).

PE vs Market: RACE is poor value based on its PE Ratio (57.5x) compared to the Italian market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: RACE is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: RACE is overvalued based on its PB Ratio (21.8x) compared to the IT Auto industry average (1.9x).


Next Steps

Future Growth

How is Ferrari forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RACE's forecast earnings growth (22.3% per year) is above the savings rate (2%).

Earnings vs Market: RACE's earnings (22.3% per year) are forecast to grow slower than the Italian market (25.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RACE's revenue (14.2% per year) is forecast to grow faster than the Italian market (3.6% per year).

High Growth Revenue: RACE's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RACE's Return on Equity is forecast to be very high in 3 years time (40.4%).


Next Steps

  • Explore growth companies in the Automobiles industry.

Past Performance

How has Ferrari performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RACE has high quality earnings.

Growing Profit Margin: RACE's current net profit margins (15.3%) are lower than last year (23.2%).


Past Earnings Growth Analysis

Earnings Trend: RACE's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: RACE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RACE had negative earnings growth (-38.9%) over the past year, making it difficult to compare to the Auto industry average (-38.2%).


Return on Equity

High ROE: Whilst RACE's Return on Equity (37.89%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Ferrari's financial position?


Financial Position Analysis

Short Term Liabilities: RACE's short term assets (€2.9B) exceed its short term liabilities (€915.7M).

Long Term Liabilities: RACE's short term assets (€2.9B) do not cover its long term liabilities (€3.6B).


Debt to Equity History and Analysis

Debt Level: RACE's debt to equity ratio (198.2%) is considered high.

Reducing Debt: RACE's debt to equity ratio has increased from 21.8% to 198.2% over the past 5 years.

Debt Coverage: RACE's debt is well covered by operating cash flow (31.2%).

Interest Coverage: RACE's interest payments on its debt are well covered by EBIT (16.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Ferrari current dividend yield, its reliability and sustainability?

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RACE's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.57%).

High Dividend: RACE's dividend (0.71%) is low compared to the top 25% of dividend payers in the Italian market (5.29%).


Stability and Growth of Payments

Stable Dividend: RACE is not paying a notable dividend for the Italian market, therefore no need to check if payments are stable.

Growing Dividend: RACE is not paying a notable dividend for the Italian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RACE is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RACE's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Louis Camilleri (65 yo)

2.17yrs

Tenure

€887,255

Compensation

Mr. Louis Carey Camilleri, BA, has been the Non-Executive Chairman of Philip Morris International, Inc. since December 31, 2014. Mr. Camilleri has been the Chief Executive Officer of Ferrari S.p.A.since Ju ...


CEO Compensation Analysis

Compensation vs Market: Louis's total compensation ($USD1.05M) is below average for companies of similar size in the Italian market ($USD4.02M).

Compensation vs Earnings: Louis's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Elkann
Executive Chairman2.17yrs€223.59k0.0083%
€ 2.4m
Louis Camilleri
CEO & Executive Director2.17yrs€887.26k0.018%
€ 5.3m
Antonio Piccon
Chief Financial Officer2.17yrsno datano data
Michael Leiters
Chief Technology Officer6.67yrsno datano data
Nicoletta Russo
Head of Investor Relations5.17yrsno datano data
Carlo Daneo
General Counsel5.17yrsno datano data
Jane Reeve
Chief Communication Officer1.33yrsno datano data
Enrico Galliera
Chief Marketing & Commercial Officer10.42yrsno datano data
Michele Antoniazzi
Chief Human Resources Officer4.42yrsno datano data
Vincenzo Regazzoni
Chief Manufacturing Officer5.5yrsno datano data
Nicola Boari
Chief Brand Diversification Officer10.5yrsno datano data
Flavio Manzoni
Chief Design Officer10.67yrsno datano data

5.2yrs

Average Tenure

54yo

Average Age

Experienced Management: RACE's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Elkann
Executive Chairman2.17yrs€223.59k0.0083%
€ 2.4m
Louis Camilleri
CEO & Executive Director2.17yrs€887.26k0.018%
€ 5.3m
John Galantic
Non-Executive Director0.42yrno datano data
Piero Ferrari
Vice Chairmanno data€83.47k10.23%
€ 3.0b
Sergio Duca
Senior Independent Non-Executive Directorno data€109.81kno data
Adam Phillip Charles Keswick
Non-Executive Director4.42yrs€67.08k0.0014%
€ 418.5k
Maria Patrizia Grieco
Non-Executive Director4.42yrs€76.02kno data
Eduardo Cue
Non-Executive Director4.67yrs€73.54k0.0015%
€ 427.2k
Francesca Bellettini
Non- Executive Director0.42yrno datano data
Delphine Arnault
Non-Executive Director4.42yrs€67.08k0.0015%
€ 444.8k
Roberto Cingolani
Non- Executive Director0.42yrno datano data

4.4yrs

Average Tenure

58yo

Average Age

Experienced Board: RACE's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ferrari N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ferrari N.V.
  • Ticker: RACE
  • Exchange: BIT
  • Founded: 1947
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: US$34.718b
  • Listing Market Cap: US$29.264b
  • Shares outstanding: 184.75m
  • Website: https://www.ferrari.com

Number of Employees


Location

  • Ferrari N.V.
  • Via Abetone Inferiore n. 4
  • Maranello
  • Modena
  • 41053
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RACENYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2015
2FEXTRA (XETRA Trading Platform)YesCommon SharesDEEUROct 2015
2FEDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2015
RACESWX (SIX Swiss Exchange)YesCommon SharesCHCHFOct 2015
0RDTLSE (London Stock Exchange)YesCommon SharesGBEUROct 2015
RACEBIT (Borsa Italiana)YesCommon SharesITEUROct 2015
RACEMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEUROct 2015
RACE NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNOct 2015
RACEWBAG (Wiener Boerse AG)YesCommon SharesATEUROct 2015

Biography

Ferrari N.V., through with its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hypercars; Fuori ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 04:32
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.