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RACE

FerrariNYSE:RACE Stock Report

Market Cap

US$47.6b

7D

-2.7%

1Y

22.7%

Updated

07 Dec, 2021

Data

Company Financials +
RACE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends0/6

RACE Stock Overview

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

Ferrari Competitors

Tesla

NasdaqGS:TSLA

US$1.0t

Ford Motor

NYSE:F

US$76.8b

Daimler

XTRA:DAI

€91.4b

Bayerische Motoren Werke

XTRA:BMW

€57.5b

Price History & Performance

Summary of all time highs, changes and price drops for Ferrari
Historical stock prices
Current Share PriceUS$258.53
52 Week HighUS$278.78
52 Week LowUS$183.82
Beta0.92
1 Month Change-1.52%
3 Month Change17.23%
1 Year Change22.72%
3 Year Change146.38%
5 Year Change354.68%
Change since IPO370.05%

Recent News & Updates

Dec 04

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.

Nov 19
Ferrari (NYSE:RACE) Has Some Way To Go To Become A Multi-Bagger

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...

Sep 28

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.

Aug 20
Ferrari (NYSE:RACE) Is Very Good At Capital Allocation

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...

Aug 05
Should You Think About Buying Ferrari N.V. (NYSE:RACE) Now?

Should You Think About Buying Ferrari N.V. (NYSE:RACE) Now?

Ferrari N.V. ( NYSE:RACE ) received a lot of attention from a substantial price movement on the NYSE over the last few...

Shareholder Returns

RACEUS AutoUS Market
7D-2.7%-10.2%-2.6%
1Y22.7%44.6%17.8%

Return vs Industry: RACE underperformed the US Auto industry which returned 53.1% over the past year.

Return vs Market: RACE exceeded the US Market which returned 16.5% over the past year.

Price Volatility

Is RACE's price volatile compared to industry and market?
RACE volatility
RACE Average Weekly Movement3.4%
Auto Industry Average Movement9.2%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: RACE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RACE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19474,562Benedetto Vignahttps://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

How do Ferrari's earnings and revenue compare to its market cap?
RACE fundamental statistics
Market Cap€42.17b
Earnings (TTM)€878.63m
Revenue (TTM)€4.17b

48.0x

P/E Ratio

10.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
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

n/a

Earnings per share (EPS)4.78
Gross Margin51.62%
Net Profit Margin21.08%
Debt/Equity Ratio122.9%

How did RACE perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

18%

Payout Ratio

Valuation

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

48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RACE ($258.53) is trading above our estimate of fair value ($57.31)

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 (48x) compared to the US Auto industry average (22.2x).

PE vs Market: RACE is poor value based on its PE Ratio (48x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: RACE is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: RACE is overvalued based on its PB Ratio (20.5x) compared to the US Auto industry average (4.5x).


Future Growth

How is Ferrari forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RACE's forecast earnings growth (11.3% per year) is above the savings rate (2%).

Earnings vs Market: RACE's earnings (11.3% per year) are forecast to grow slower than the US market (13.8% per year).

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

Revenue vs Market: RACE's revenue (9.1% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: RACE's revenue (9.1% 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 (34.8%)


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 240.4%.


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?

0.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RACE's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: RACE's dividend (0.38%) is low compared to the top 25% of dividend payers in the US market (3.62%).


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?

6.4yrs

Average management tenure


CEO

Benedetto Vigna (52 yo)

0.25

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 (6.4 years average tenure).


Board Members

Experienced Board: RACE's board of directors are considered experienced (5.7 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
  • Market Cap: US$47.558b
  • Shares outstanding: 183.96m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:35
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.