NYSE:RACE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with limited growth.


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

-8.3%

RACE

-4.1%

US Auto

-4.2%

US Market


1 Year Return

26.3%

RACE

49.7%

US Auto

14.0%

US Market

Return vs Industry: RACE underperformed the US Auto industry which returned 60.1% over the past year.

Return vs Market: RACE exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

RACEIndustryMarket
7 Day-8.3%-4.1%-4.2%
30 Day-5.5%17.2%-1.8%
90 Day-4.6%42.3%2.6%
1 Year27.4%26.3%53.9%49.7%16.3%14.0%
3 Year156.4%150.5%69.9%54.5%43.2%34.0%
5 Yearn/a72.9%43.5%65.9%47.6%

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

Valuation

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

40.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RACE ($172.9) is trading above our estimate of fair value ($90.84)

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 (42.7x) compared to the Auto industry average (27.5x).

PE vs Market: RACE is poor value based on its PE Ratio (42.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: RACE is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: RACE is overvalued based on its PB Ratio (19.9x) compared to the US Auto industry average (3.5x).


Next Steps

Future Growth

How is Ferrari forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RACE's forecast earnings growth (8.8% per year) is above the savings rate (1.7%).

Earnings vs Market: RACE's earnings (8.8% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: RACE's earnings are forecast to grow, but not significantly.

Revenue vs Market: RACE's revenue (7.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: RACE's revenue (7.3% 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 high in 3 years time (32.6%)


Next Steps

Past Performance

How has Ferrari performed over the past 5 years?

24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RACE has high quality earnings.

Growing Profit Margin: RACE's current net profit margins (18.5%) are lower than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: RACE's earnings have grown significantly by 24.5% 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 (-11.3%) over the past year, making it difficult to compare to the Auto industry average (-18.9%).


Return on Equity

High ROE: Whilst RACE's Return on Equity (46.98%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ferrari's financial position?


Financial Position Analysis

Short Term Liabilities: RACE's short term assets (€2.6B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: RACE's short term assets (€2.6B) exceed its long term liabilities (€2.6B).


Debt to Equity History and Analysis

Debt Level: RACE's debt to equity ratio (136.4%) is considered high.

Reducing Debt: RACE's debt to equity ratio has increased from 20.6% to 136.4% over the past 5 years.

Debt Coverage: RACE's debt is well covered by operating cash flow (64.4%).

Interest Coverage: RACE's interest payments on its debt are well covered by EBIT (27x coverage).


Balance Sheet

Inventory Level: RACE has a high level of physical assets or inventory.

Debt Coverage by Assets: RACE's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

0.75%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Ferrari before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%3.8%industryaverage4.3%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: RACE's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: RACE's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

Growing Dividend: RACE is not paying a notable dividend for the US 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 US 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 US market.


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Louis Camilleri (64yo)

1.6yrs

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 ($USD963.78K) is below average for companies of similar size in the US market ($USD10.81M).

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 Chairman1.6yrs€223.59k0.0083% 2.5m
Louis Camilleri
CEO & Executive Director1.6yrs€887.26k0.012% 3.7m
Antonio Piccon
Chief Financial Officer1.6yrsno datano data
Michael Leiters
Chief Technology Officer6.1yrsno datano data
Nicoletta Russo
Head of Investor Relations4.6yrsno datano data
Carlo Daneo
General Counsel4.6yrsno datano data
Jane Reeve
Chief Communication Officer0.8yrsno datano data
Enrico Galliera
Chief Marketing & Commercial Officer9.8yrsno datano data
Michele Antoniazzi
Chief Human Resources Officer3.8yrsno datano data
Vincenzo Regazzoni
Chief Manufacturing Officer4.9yrsno datano data

4.6yrs

Average Tenure

53yo

Average Age

Experienced Management: RACE's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Elkann
Executive Chairman1.6yrs€223.59k0.0083% 2.5m
Louis Camilleri
CEO & Executive Director1.6yrs€887.26k0.012% 3.7m
Piero Ferrari
Vice Chairman0yrs€83.47k10.21% 3.1b
Sergio Duca
Senior Non-Executive Director0yrs€109.81kno data
Adam Phillip Charles Keswick
Independent Non-Executive Director3.8yrs€67.08k0.0014% 431.4k
Maria Patrizia Grieco
Independent Non-Executive Director3.8yrs€76.02kno data
Eduardo Cue
Independent Non-Executive Director4.1yrs€73.54k0.0014% 437.4k
Elena Emilia Zambon
Independent Non-Executive Director4.1yrs€74.54k0.00098% 295.6k
Giuseppina Capaldo
Independent Non-Executive Director4.1yrs€86.47kno data
Delphine Arnault
Independent Non-Executive Director3.8yrs€67.08k0.0015% 455.5k

4.0yrs

Average Tenure

55yo

Average Age

Experienced Board: RACE's board of directors are considered experienced (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: NYSE
  • Founded: 1947
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: US$30.165b
  • Shares outstanding: 185.07m
  • 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 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, 2019, it had a total of 44 retail Ferrari stores, including 24 franchised stores and 20 owned stores. The company also sells its products through a network of 166 authorized dealers operating 187 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:43
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.