NYSE:RACE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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 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.


Market Performance


7 Day Return

-4.3%

RACE

-9.6%

US Auto

-0.4%

US Market


1 Year Return

24.1%

RACE

230.4%

US Auto

36.2%

US Market

Return vs Industry: RACE underperformed the US Auto industry which returned 230.4% over the past year.

Return vs Market: RACE underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

RACEIndustryMarket
7 Day-4.3%-9.6%-0.4%
30 Day-6.2%-25.6%-2.3%
90 Day-10.2%-1.1%5.0%
1 Year24.8%24.1%230.8%230.4%39.1%36.2%
3 Year54.4%51.5%298.2%276.3%48.4%39.0%
5 Year360.4%341.7%442.1%373.8%116.6%92.4%

Long-Term 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?

48.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RACE ($188.9) is trading above our estimate of fair value ($52.47)

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


Price To Earnings Ratio

PE vs Industry: RACE's PE Ratio (48.2x) is in line with the US Auto industry average.

PE vs Market: RACE is poor value based on its PE Ratio (48.2x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: RACE is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: RACE is overvalued based on its PB Ratio (16.4x) compared to the US Auto industry average (4.5x).


Next Steps

Future Growth

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

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RACE's forecast earnings growth (16.8% per year) is above the savings rate (2%).

Earnings vs Market: RACE's earnings (16.8% per year) are forecast to grow slower than the US market (19.2% per year).

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

Revenue vs Market: RACE's revenue (13.4% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: RACE's revenue (13.4% 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 (36.4%)


Next Steps

Past Performance

How has Ferrari performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RACE has high quality earnings.

Growing Profit Margin: RACE's current net profit margins (17.6%) are lower than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: RACE's earnings have grown by 14.2% 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 (-12.6%) over the past year, making it difficult to compare to the Auto industry average (-1.9%).


Return on Equity

High ROE: Whilst RACE's Return on Equity (34.03%) 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 (€3.1B) exceed its short term liabilities (€1.9B).

Long Term Liabilities: RACE's short term assets (€3.1B) exceed its long term liabilities (€2.6B).


Debt to Equity History and Analysis

Debt Level: RACE's debt to equity ratio (148.8%) is considered high.

Reducing Debt: RACE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: RACE's debt is well covered by operating cash flow (31.5%).

Interest Coverage: RACE's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet


Next Steps

Dividend

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

0.55%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RACE's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: RACE's dividend (0.55%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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?

5.7yrs

Average management tenure


CEO

John Elkann (44 yo)

0.25

Tenure

€77,790

Compensation

Mr. John Jacob Philip Elkann is Executive Chairman of the Board at Stellantis N.V. since January 17, 2021. He had been an Executive Director of Fiat Chrysler Automobiles N.V. since December 1997. He had be...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD92.67K) is below average for companies of similar size in the US market ($USD10.58M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Elkann
Executive Chairman & Interim CEO0.25yr€77.79k0.0083%
€ 2.9m
Antonio Piccon
Chief Financial Officer2.67yrsno datano data
Michael Leiters
Chief Technology Officer7.17yrsno datano data
Nicoletta Russo
Head of Investor Relations5.67yrsno datano data
Carlo Daneo
General Counsel5.67yrsno datano data
Jane Reeve
Chief Communication Officer1.83yrsno datano data
Enrico Galliera
Chief Marketing & Commercial Officer10.92yrsno datano data
Michele Antoniazzi
Chief Human Resources Officer4.92yrsno datano data
Vincenzo Regazzoni
Chief Manufacturing Officer6yrsno datano data
Nicola Boari
Chief Brand Diversification Officer11yrsno datano data
Flavio Manzoni
Chief Design Officer11.17yrsno datano data
Mattia Binotto
MD of Gestione Sportiva & Team Principal of Scuderia Ferrari Mission Winnow2.17yrsno datano data

5.7yrs

Average Tenure

52yo

Average Age

Experienced Management: RACE's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Elkann
Executive Chairman & Interim CEO0.25yr€77.79k0.0083%
€ 2.9m
John Galantic
Non-Executive Director0.92yrno datano data
Piero Ferrari
Vice Chairmanno data€30.04k10.23%
€ 3.6b
Sergio Duca
Senior Independent Non-Executive Directorno data€27.23kno data
Adam Phillip Charles Keswick
Non-Executive Director4.92yrs€17.02k0.0014%
€ 499.1k
Maria Patrizia Grieco
Independent Non-Executive Director4.92yrs€19.29kno data
Eduardo Cue
Non-Executive Director5.17yrs€19.29k0.0015%
€ 509.5k
Francesca Bellettini
Independent Non- Executive Director0.92yrno datano data
Delphine Arnault
Non-Executive Director4.92yrs€17.02k0.0015%
€ 530.5k

4.9yrs

Average Tenure

56yo

Average Age

Experienced Board: RACE's board of directors are considered experienced (4.9 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$34.899b
  • 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 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 an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 00:35
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.