Ferrari
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Ferrari N.V., through with its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The last earnings update was 23 days ago. More info.
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- Ferrari has significant price volatility in the past 3 months.
RACE Share Price and Events
7 Day Returns
1 Year Returns
RACE Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Ferrari (RACE) | 0.4% | 4.3% | 34.2% | 9.4% | 220.2% | - |
| US Auto | -2.4% | -4.5% | 3.3% | -10.5% | 8.3% | -9.7% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- RACE outperformed the Auto industry which returned -10.5% over the past year.
- RACE outperformed the Market in United States of America which returned 3% over the past year.
Value
Is Ferrari undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Ferrari
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Ferrari.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 21 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 9% |
| Auto Unlevered Beta | Simply Wall St/ S&P Global | 0.57 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.571 (1 + (1- 24%) (8.86%)) |
0.739 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 9.02%) |
9.95% |
Discounted Cash Flow Calculation for NYSE:RACE using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Ferrari is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (EUR, Millions) | Source |
Present Value Discounted (@ 9.95%) |
|
|---|---|---|---|
| 2019 | 383.31 | Analyst x12 | 348.63 |
| 2020 | 444.41 | Analyst x13 | 367.64 |
| 2021 | 625.58 | Analyst x7 | 470.70 |
| 2022 | 920.71 | Analyst x5 | 630.09 |
| 2023 | 1,081.90 | Analyst x1 | 673.43 |
| 2024 | 1,212.76 | Est @ 12.1% | 686.59 |
| 2025 | 1,325.37 | Est @ 9.29% | 682.47 |
| 2026 | 1,422.37 | Est @ 7.32% | 666.16 |
| 2027 | 1,506.89 | Est @ 5.94% | 641.90 |
| 2028 | 1,581.91 | Est @ 4.98% | 612.90 |
| Present value of next 10 years cash flows | €5,780.50 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= €1,581.91 × (1 + 2.73%) ÷ (9.95% – 2.73%) |
€22,520.80 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= €22,520.80 ÷ (1 + 9.95%)10 |
€8,725.48 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= €5,780.50 + €8,725.48 |
€14,505.99 |
| Equity Value per Share (EUR) |
= Total value / Shares Outstanding
= €14,505.99 / 187.50 |
€77.37 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | EUR/USD
(Reporting currency to currency of NYSE:RACE) |
1.135 |
| Value per Share (USD) |
= Value per Share in EUR x Exchange Rate (EUR/USD)
= €77.37 x 1.135 |
$87.85 |
| Value per share (USD) | From above. | $87.85 |
| Current discount | Discount to share price of
$131.75
= -1 x ($131.75 - $87.85) / $87.85 |
-50% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Ferrari is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Ferrari's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Ferrari's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in EUR | €4.16 |
| NYSE:RACE Share Price ** | NYSE (2019-03-20) in USD | $131.75 |
| NYSE:RACE Share Price converted to EUR reporting currency | Exchange rate (USD/ EUR) 0.881 | €116.03 |
| United States of America Auto Industry PE Ratio | Median Figure of 6 Publicly-Listed Auto Companies | 10.37x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Ferrari.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:RACE Share Price ÷ EPS (both in EUR) = 116.03 ÷ 4.16 |
27.89x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ferrari is overvalued based on earnings compared to the US Auto industry average.
- Ferrari is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Ferrari's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 27.89x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts |
2.2%per year |
| United States of America Auto Industry PEG Ratio | Median Figure of 6 Publicly-Listed Auto Companies | 0.91x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 27.89x ÷ 2.2% |
12.62x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ferrari is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Ferrari's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in EUR | €7.18 |
| NYSE:RACE Share Price * | NYSE (2019-03-20) in USD | $131.75 |
| NYSE:RACE Share Price converted to EUR reporting currency | Exchange rate (USD/ EUR) 0.881 | €116.03 |
| United States of America Auto Industry PB Ratio | Median Figure of 11 Publicly-Listed Auto Companies | 6.08x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:RACE Share Price ÷ Book Value per Share (both in EUR) = 116.03 ÷ 7.18 |
16.17x |
* Primary Listing of Ferrari.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ferrari is overvalued based on assets compared to the US Auto industry average.
Value checks
We assess Ferrari's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check) Ferrari has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Ferrari expected to perform in the next 1 to 3 years based on estimates from 21 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Ferrari's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
- Ferrari's earnings growth is positive but not above the United States of America market average.
- Ferrari's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:RACE Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts | 2.2% |
| NYSE:RACE Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts | 8.1% |
| United States of America Auto Industry Earnings Growth Rate | Market Cap Weighted Average | 22.5% |
| United States of America Auto Industry Revenue Growth Rate | Market Cap Weighted Average | 7% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
| Date (Data in EUR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 5,184 | 1,684 | 2 | |
| 2022-12-31 | 4,888 | 1,507 | 900 | 7 |
| 2021-12-31 | 4,298 | 1,324 | 793 | 11 |
| 2020-12-31 | 4,012 | 1,188 | 733 | 19 |
| 2019-12-31 | 3,664 | 1,096 | 688 | 21 |
| Date (Data in EUR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 3,420 | 934 | 785 |
| 2018-09-30 | 3,415 | 774 | 730 |
| 2018-06-30 | 3,413 | 769 | 584 |
| 2018-03-31 | 3,427 | 731 | 559 |
| 2017-12-31 | 3,417 | 663 | 535 |
| 2017-09-30 | 3,412 | 946 | 511 |
| 2017-06-30 | 3,360 | 964 | 483 |
| 2017-03-31 | 3,250 | 1,034 | 445 |
| 2016-12-31 | 3,105 | 1,005 | 399 |
| 2016-09-30 | 3,014 | 740 | 342 |
| 2016-06-30 | 2,954 | 608 | 323 |
| 2016-03-31 | 2,909 | 756 | 301 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
All data from Ferrari Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in EUR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | 4.45 | 4.45 | 4.45 | 1.00 |
| 2020-12-31 | 3.94 | 4.05 | 3.90 | 5.00 |
| 2019-12-31 | 3.65 | 3.75 | 3.50 | 5.00 |
| Date (Data in EUR Millions) | EPS * |
|---|---|
| 2018-12-31 | 4.16 |
| 2018-09-30 | 3.87 |
| 2018-06-30 | 3.09 |
| 2018-03-31 | 2.96 |
| 2017-12-31 | 2.83 |
| 2017-09-30 | 2.70 |
| 2017-06-30 | 2.56 |
| 2017-03-31 | 2.36 |
| 2016-12-31 | 2.11 |
| 2016-09-30 | 1.81 |
| 2016-06-30 | 1.71 |
| 2016-03-31 | 1.59 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Ferrari's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Ferrari has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Ferrari performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Ferrari has delivered over 20% year on year earnings growth in the past 5 years.
- Ferrari's 1-year earnings growth exceeds its 5-year average (46.6% vs 25.5%)
- Ferrari's earnings growth has exceeded the US Auto industry average in the past year (46.6% vs 19.7%).
Earnings and Revenue History
All data from Ferrari Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in EUR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 3,420.32 | 784.68 | 327.34 | 643.04 |
| 2018-09-30 | 3,414.77 | 730.47 | 314.54 | 657.27 |
| 2018-06-30 | 3,412.50 | 583.69 | 318.25 | 660.97 |
| 2018-03-31 | 3,427.29 | 559.36 | 322.86 | 657.60 |
| 2017-12-31 | 3,416.89 | 535.39 | 329.07 | 657.12 |
| 2017-09-30 | 3,412.49 | 510.68 | 318.71 | 653.58 |
| 2017-06-30 | 3,360.06 | 483.39 | 304.69 | 643.56 |
| 2017-03-31 | 3,250.23 | 445.09 | 307.40 | 627.60 |
| 2016-12-31 | 3,105.08 | 398.76 | 295.24 | 613.64 |
| 2016-09-30 | 3,014.04 | 342.05 | 302.77 | 583.00 |
| 2016-06-30 | 2,953.70 | 323.16 | 306.39 | 575.50 |
| 2016-03-31 | 2,908.87 | 300.78 | 299.14 | 566.13 |
| 2015-12-31 | 2,854.37 | 287.82 | 303.73 | 561.58 |
| 2015-09-30 | 2,861.15 | 312.57 | 292.51 | 570.16 |
| 2015-06-30 | 2,800.53 | 275.23 | 293.78 | 556.06 |
| 2015-03-31 | 2,763.42 | 272.10 | 284.11 | 550.71 |
| 2014-12-31 | 2,762.36 | 261.37 | 285.06 | 540.83 |
| 2013-12-31 | 2,335.27 | 240.77 | 259.88 | 479.29 |
| 2012-12-31 | 2,225.21 | 225.40 | 242.82 | 431.46 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Ferrari made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
- Ferrari used its assets more efficiently than the US Auto industry average last year based on Return on Assets.
- Ferrari's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Ferrari's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Ferrari has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Ferrari's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Ferrari's finances.
The net worth of a company is the difference between its assets and liabilities.
- Ferrari is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Ferrari's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Ferrari Company Filings, last reported 2 months ago.
| Date (Data in EUR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 1,353.84 | 1,927.17 | 799.02 |
| 2018-09-30 | 1,230.84 | 1,887.55 | 763.46 |
| 2018-06-30 | 928.15 | 1,853.10 | 656.30 |
| 2018-03-31 | 898.11 | 1,822.42 | 752.70 |
| 2017-12-31 | 783.94 | 1,806.18 | 652.81 |
| 2017-09-30 | 649.89 | 1,798.31 | 624.50 |
| 2017-06-30 | 515.06 | 1,754.67 | 427.42 |
| 2017-03-31 | 480.97 | 1,870.12 | 574.97 |
| 2016-12-31 | 329.81 | 1,848.04 | 464.35 |
| 2016-09-30 | 233.65 | 2,198.94 | 495.49 |
| 2016-06-30 | 110.38 | 2,482.82 | 590.48 |
| 2016-03-31 | 94.69 | 2,442.22 | 569.34 |
| 2015-12-31 | -19.40 | 2,260.39 | 186.31 |
| 2015-09-30 | 2,706.95 | 579.15 | 190.08 |
| 2015-06-30 | 2,599.00 | 566.68 | 257.53 |
| 2015-03-31 | 2,474.51 | 623.43 | 163.72 |
| 2014-12-31 | 2,478.31 | 510.22 | 134.28 |
| 2013-12-31 | 2,316.28 | 317.30 | 113.79 |
| 2012-12-31 |
- Ferrari's level of debt (142.3%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (13.7% vs 142.3% today).
- Debt is well covered by operating cash flow (48.5%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 34.5x coverage).
Financial health checks
We assess Ferrari's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Ferrari has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Ferrari's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Ferrari
shares you are expected to receive
$18
in your first year as a dividend.
Dividend Amount
- Ferrari's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
- Ferrari's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Upcoming dividend payment
Purchase Ferrari on or before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
| United States of America Auto Industry Average Dividend Yield | Market Cap Weighted Average of 6 Stocks | 4.1% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in €) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 1.34 | 3.00 |
| 2020-12-31 | 1.11 | 8.00 |
| 2019-12-31 | 1.00 | 7.00 |
| Date (Data in €) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-26 | 1.030 | 0.894 |
| 2018-04-13 | 0.710 | 0.670 |
| 2017-03-01 | 0.635 | 0.740 |
| 2016-02-19 | 0.460 | 1.055 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Ferrari has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Ferrari only paid a dividend in the past 3 years.
Income/ dividend checks
We assess Ferrari's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Ferrari afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Ferrari has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | €270,412 |
| AGE | 63 |
| TENURE AS CEO | 0.7 years |
CEO Bio
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 N.V., since July 2018. He served as the Chief Executive Officer of Philip Morris International, Inc. (PMI) from March 28, 2008 to May 2013 and served as its Executive Chairman from March 28, 2008 to December 31, 2014. Mr. Camilleri served as a Member of the Executive Board at NYSE Euronext, Inc. (now NYSE Holdings LLC). He worked with Altria Group Inc. and its subsidiaries in various capacities since 1978. He served as the Chief Executive Officer of Altria Group Inc. from April 25, 2002 to March 2008 and also served as its Chairman from August 2002 to March 2008. He served as the Chief Financial Officer and Senior Vice President of Altria Group Inc. from November 1996 to April 2002 and also served as its President. He joined Philip Morris Europe in 1978 as a Business Development Analyst and held various line and staff positions focusing on the establishment and growth of the EFTA, Eastern Europe, Middle East & Africa (EEMA) Region of Philip Morris International (PMI). Since 1982, he served as Director of Business Development & Planning and assumed responsibility for all staff functions as Vice President of EEMA Region for Philip Morris Europe since 1986. He served as the Vice President of Corporate Business Strategy for PMI since February 1995. He served as Senior Vice President of Corporate Planning for Kraft Foods International since August 1995 and served as its President and Chief Executive Officer of Kraft Foods International since December 1995. Since 1990, he served as Vice President of Central & Eastern Europe, PMI and led the significant expansion of PMI's business in that geographic area. He served as Senior Vice President of PMI's European Union Region, where he was responsible for all staff functions. He served as Business Analyst with W. R. Grace & Co. He served as the Chairman of Kraft Foods Inc. (now Mondelez International, Inc.) from September 2002 to March 30, 2007 and also served as its Director from March 2001 to December 2007. He has been an Executive Director of Ferrari N.V. since July 2018 and was its Non-Executive Director from October 2015 to July 2018 and served as its Senior Non Executive Director until July 2018. He has been an Independent Director of America Movil S.A.B. de C.V. since April 27, 2011 and Director of Philip Morris International, Inc. since March 27, 2008. He serves as a Director of Telmex S.A. He served on the Board of Telmex International SAB since December 2009. He was appointed to the Board of Directors of América Móvil, S.A.B. de C.V. in April 2011. He served as a Director of Altria Group Inc. from April 2002 to December 8, 2007. He served as an Independent Director of Telmex Internacional, S.A.B. de C.V. since December 15, 2009. He served as a Director of SABMiller PLC from August 2002 to July 2004. He is a Member of the New York Stock Exchange Board of Executives. Mr. Camilleri received a Degree in Economics and Business Administration from HEC Lausanne, the Faculty of Business & Economics of the University of Lausanne (Switzerland) in 1976.
CEO Compensation
- Louis's compensation has increased by more than 20% in the past year.
- Louis's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Ferrari management team in years:
- The tenure for the Ferrari management team is about average.
Management Team
Louis Camilleri
CEO & Executive Director
€270K
63
0.7 yrs
Antonio Piccon
Chief Financial Officer
0.7 yrs
Michael Leiters
Chief Technology Officer
47
5.2 yrs
Nicoletta Russo
Head of Investor Relations
3.7 yrs
Carlo Daneo
General Counsel
3.7 yrs
Enrico Galliera
Chief Marketing & Commercial Officer
52
8.9 yrs
Michele Antoniazzi
Chief Human Resources Officer
49
2.9 yrs
Vincenzo Regazzoni
Chief Manufacturing Officer
55
4 yrs
Nicola Boari
Chief Brand Diversification Officer
48
9 yrs
Flavio Manzoni
Head of Design
53
9.2 yrs
Board of Directors Tenure
Average tenure and age of the Ferrari board of directors in years:
- The tenure for the Ferrari board of directors is about average.
Board of Directors
John Elkann
Chairman
€93K
42
0.7 yrs
Louis Camilleri
CEO & Executive Director
€270K
63
3.4 yrs
Piero Ferrari
Vice Chairman
€81K
73
3.4 yrs
Sergio Duca
Senior Independent Non-Executive Director
€95K
71
Elena Emilia Zambon
Independent Non-Executive Director
€72K
54
3.4 yrs
Amedeo Felisa
Non-Executive Director
€64K
72
3.4 yrs
Eddy Cue
Independent Non-Executive Director
€68K
54
3.4 yrs
Giuseppina Capaldo
Independent Non-Executive Director
€74K
49
3.4 yrs
Delphine Arnault
Independent Non-Executive Director
€64K
43
2.9 yrs
Lapo Elkann
Non-Executive Director
€64K
41
2.9 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Ferrari's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Ferrari has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Will Ferrari N.V.'s (NYSE:RACE) Earnings Grow Over The Next Year?
On 31 December 2018, Ferrari N.V. … (NYSE:RACE) released its most recent earnings update. … with profits predicted to drop by -12% next year
Simply Wall St - – Full articleThe Ferrari Share Price Has Gained 213%, So Why Not Pay It Some Attention?
(NYSE:RACE) share price is 213% higher than it was three years ago. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Ferrari achieved compound earnings per share growth of 40% per year.
Simply Wall St - – Full articleWhat Do Analysts Think About Ferrari N.V.'s (NYSE:RACE) Earnings Trajectory?
Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … Ferrari N.V.'s (NYSE:RACE) most recent earnings update in December 2018a
Simply Wall St - – Full articleIs Ferrari N.V. (NYSE:RACE) A High Quality Stock To Own?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.64 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIntrinsic Calculation For Ferrari N.V. (NYSE:RACE) Shows Investors Are Overpaying
Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleWhy Ferrari N.V. (NYSE:RACE) Could Be Worth Watching
The company's stock. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Ferrari’s outlook and valuation to see if the opportunity still exists.
Simply Wall St - – Full articleWhy Ferrari N.V.’s (NYSE:RACE) Return On Capital Employed Is Impressive
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed
Simply Wall St - – Full articleDo Insiders Own Lots Of Shares In Ferrari NV (NYSE:RACE)?
The big shareholder groups in Ferrari NV (NYSE:RACE) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Ferrari is a pretty big company.
Simply Wall St - – Full articleDon't Sell Ferrari NV (NYSE:RACE) Before You Read This
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 24.2 = €93.63 (Note: this is the share price in the reporting currency, namely, EUR ) ÷ €3.87
Simply Wall St - – Full articleIs Ferrari NV's (NYSE:RACE) ROE Of 60% Impressive?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Ferrari has a return on equity of 60% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCompany Info
Description
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 series, one-off, and track cars; and Icona cars. It also provides non-registered racing cars; and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; and Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages race tracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores. As of December 31, 2018, it had a total of 35 retail Ferrari stores, including 17 franchised stores and 18 owned stores. The company also sells its products through a network of 167 authorized dealers operating 190 points of sale worldwide, as well as through its Website, store.ferrari.com. Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.
Details
| Name: | Ferrari N.V. |
| RACE | |
| Exchange: | NYSE |
| Founded: | 1947 |
| $24,702,688,512 | |
| 187,496,687 | |
| Website: | http://www.ferrari.com |
| Address: |
Ferrari N.V. Via Abetone Inferiore n. 4, Maranello, 41053, Italy |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | RACE | Common Shares | New York Stock Exchange | US | USD | 21. Oct 2015 | |
| DB | 2FE | Common Shares | Deutsche Boerse AG | DE | EUR | 21. Oct 2015 | |
| XTRA | 2FE | Common Shares | XETRA Trading Platform | DE | EUR | 21. Oct 2015 | |
| LSE | 0RDT | Common Shares | London Stock Exchange | GB | EUR | 21. Oct 2015 | |
| SWX | RACE | Common Shares | SIX Swiss Exchange | CH | CHF | 21. Oct 2015 | |
| BIT | RACE | Common Shares | Borsa Italiana | IT | EUR | 21. Oct 2015 | |
| WBAG | RACE | Common Shares | Wiener Boerse AG | AT | EUR | 21. Oct 2015 | |
| BMV | RACE N | Common Shares | Bolsa Mexicana de Valores | MX | MXN | 21. Oct 2015 | |
| BATS-CHIXE | RACEM | Common Shares | BATS 'Chi-X Europe' | GB | EUR | 21. Oct 2015 | |
| BST | 2FE | COM | Boerse-Stuttgart | DE | EUR | 21. Mar 2019 | |
| NYSE | RACE | COM | New York Stock Exchange | US | USD | 21. Mar 2019 | |
| LSE | 0RDT | COM | London Stock Exchange | GB | CHF | 21. Mar 2019 | |
| SWX | RACE | COM | SIX Swiss Exchange | CH | CHF | 21. Mar 2019 |
Number of employees
Current staff
Industry
| Automobile Manufacturers | |
| Automobiles |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/21 00:56 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/03/18 |
| Last earnings filing: | 2019/02/26 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
