| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
RACE Stock Overview
Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars.
Ferrari Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$226.66 |
| 52 Week High | US$278.78 |
| 52 Week Low | US$183.82 |
| Beta | 0.90 |
| 1 Month Change | -10.57% |
| 3 Month Change | -2.07% |
| 1 Year Change | 8.71% |
| 3 Year Change | 105.03% |
| 5 Year Change | 264.82% |
| Change since IPO | 312.11% |
Recent News & Updates
These 4 Measures Indicate That Ferrari (NYSE:RACE) Is Using Debt Reasonably Well
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...
Ferrari: The Stock May Decline But I Am Optimistic
Ferrari announced that it expects to increase its target market by offering a larger product range. With more cars in the market, customers may not perceive the brand as exclusive. As a result, they may not be willing to acquire that many cars. I used a WACC of 7.5%. With a lower EV/FCF and exit multiple of 78.5x, the implied fair price would equal $175. With that, if the engineers successfully develop electric cars that can compete with the new models from the United States and China, sales will most likely spike. I am also quite optimistic about the new hybrid engines included in the new SF90 Stradale and SF90 Spider. The new electric engine technology that RACE is preparing could dramatically change the driving experience.
Ferrari (NYSE:RACE) Has Some Way To Go To Become A Multi-Bagger
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...
Ferrari: Keep Looking In The Rear-View Mirror
I wrote an article about Ferrari a number of months ago where I called the company too expensive. This thesis has turned out accurate, at least in the short term. Ferrari has underperformed even the modest performance of the S&P 500 since that particular point in time. The thesis deserves a bit of an update following a reader question on buying "quality automotive." Ferrari may be qualitative and loved - but I still don't love the valuation.
Ferrari (NYSE:RACE) Is Very Good At Capital Allocation
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...
Shareholder Returns
| RACE | US Auto | US Market | |
|---|---|---|---|
| 7D | -4.2% | -12.1% | -5.1% |
| 1Y | 8.7% | -1.8% | 3.3% |
Return vs Industry: RACE exceeded the US Auto industry which returned -0.1% over the past year.
Return vs Market: RACE exceeded the US Market which returned 4.2% over the past year.
Price Volatility
| RACE volatility | |
|---|---|
| RACE Average Weekly Movement | 3.9% |
| Auto Industry Average Movement | 9.8% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.4% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: RACE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RACE's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1947 | 4,562 | Benedetto Vigna | https://www.ferrari.com |
Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hypercars; one-off and track cars; and Icona cars. It also provides racing cars; and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars.
Ferrari Fundamentals Summary
| RACE fundamental statistics | |
|---|---|
| Market Cap | €36.91b |
| Earnings (TTM) | €878.63m |
| Revenue (TTM) | €4.17b |
42.0x
P/E Ratio8.9x
P/S RatioIs RACE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RACE income statement (TTM) | |
|---|---|
| Revenue | €4.17b |
| Cost of Revenue | €2.02b |
| Gross Profit | €2.15b |
| Expenses | €1.27b |
| Earnings | €878.63m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 02, 2022
| Earnings per share (EPS) | 4.78 |
| Gross Margin | 51.62% |
| Net Profit Margin | 21.08% |
| Debt/Equity Ratio | 122.9% |
How did RACE perform over the long term?
See historical performance and comparisonDividends
0.4%
Current Dividend Yield18%
Payout RatioValuation
Is Ferrari undervalued compared to its fair value and its price relative to the market?
42.01x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RACE ($226.66) is trading above our estimate of fair value ($66.15)
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 (42x) compared to the US Auto industry average (13.8x).
PE vs Market: RACE is poor value based on its PE Ratio (42x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: RACE is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: RACE is overvalued based on its PB Ratio (18x) compared to the US Auto industry average (2.9x).
Future Growth
How is Ferrari forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
11.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RACE's forecast earnings growth (11.5% per year) is above the savings rate (2%).
Earnings vs Market: RACE's earnings (11.5% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: RACE's earnings are forecast to grow, but not significantly.
Revenue vs Market: RACE's revenue (9.5% per year) is forecast to grow faster than the US market (9.1% per year).
High Growth Revenue: RACE's revenue (9.5% 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 (34%)
Past Performance
How has Ferrari performed over the past 5 years?
10.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RACE has high quality earnings.
Growing Profit Margin: RACE's current net profit margins (21.1%) are higher than last year (15.5%).
Past Earnings Growth Analysis
Earnings Trend: RACE's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: RACE's earnings growth over the past year (71.2%) exceeds its 5-year average (10.5% per year).
Earnings vs Industry: RACE earnings growth over the past year (71.2%) underperformed the Auto industry 210.7%.
Return on Equity
High ROE: Whilst RACE's Return on Equity (42.76%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is Ferrari's financial position?
Financial Position Analysis
Short Term Liabilities: RACE's short term assets (€3.2B) exceed its short term liabilities (€1.3B).
Long Term Liabilities: RACE's short term assets (€3.2B) do not cover its long term liabilities (€3.3B).
Debt to Equity History and Analysis
Debt Level: RACE's net debt to equity ratio (60.9%) is considered high.
Reducing Debt: RACE's debt to equity ratio has reduced from 935.3% to 122.9% over the past 5 years.
Debt Coverage: RACE's debt is well covered by operating cash flow (52.8%).
Interest Coverage: RACE's interest payments on its debt are well covered by EBIT (25.9x coverage).
Balance Sheet
Dividend
What is Ferrari current dividend yield, its reliability and sustainability?
0.43%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RACE's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: RACE's dividend (0.43%) is low compared to the top 25% of dividend payers in the US market (3.57%).
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?
5.8yrs
Average management tenure
CEO
Benedetto Vigna (52 yo)
0.33
Tenure
Mr. Benedetto Vigna serves as Acting Chief Executive Officer at Ferrari N.V. since September 16, 2021. He joined Ferrari N.V. since September 01, 2021. He had been the President of Analog, MEMS and Sensors...
Leadership Team
Experienced Management: RACE's management team is seasoned and experienced (5.8 years average tenure).
Board Members
Experienced Board: RACE's board of directors are considered experienced (5.8 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Ferrari N.V.'s employee growth, exchange listings and data sources
Key Information
- Name: Ferrari N.V.
- Ticker: RACE
- Exchange: NYSE
- Founded: 1947
- Industry: Automobile Manufacturers
- Sector: Automobiles
- Implied Market Cap: US$41.639b
- Shares outstanding: 183.71m
- Website: https://www.ferrari.com
Number of Employees
Location
- Ferrari N.V.
- Via Abetone Inferiore n. 4
- Maranello
- Modena
- 41053
- Italy
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/26 01:09 |
| End of Day Share Price | 2022/01/25 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.