NYSE:RACE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record 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


Market Performance


7 Day Return

2.4%

RACE

4.1%

US Auto

1.3%

US Market


1 Year Return

33.3%

RACE

3.5%

US Auto

5.9%

US Market

Return vs Industry: RACE exceeded the US Auto industry which returned 3.5% over the past year.

Return vs Market: RACE exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

RACEIndustryMarket
7 Day2.4%4.1%1.3%
30 Day0.5%-3.0%-1.9%
90 Day-9.3%-8.0%-1.8%
1 Year34.4%33.3%6.6%3.5%8.3%5.9%
3 Year200.6%193.7%24.1%12.4%45.6%36.2%
5 Yearn/a7.8%-8.9%66.1%47.9%

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?

31.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: RACE ($153.32) is trading above our estimate of fair value ($103.98)

Significantly Undervalued: 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 (31.2x) compared to the Auto industry average (16.2x).

PE vs Market: RACE is poor value based on its PE Ratio (31.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: RACE is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: RACE is overvalued based on its PB Ratio (18.8x) compared to the US Auto industry average (2.9x).


Next Steps

Future Growth

How is Ferrari forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RACE's forecast earnings growth (5.7% per year) is above the savings rate (2.7%).

Earnings vs Market: RACE's earnings (5.7% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: RACE's revenue (8.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: RACE's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RACE's Return on Equity is forecast to be high in 3 years time (40%)


Next Steps

Past Performance

How has Ferrari performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RACE's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: RACE's earnings growth over the past year (43.4%) exceeds its 5-year average (28.2% per year).

Earnings vs Industry: RACE earnings growth over the past year (43.4%) exceeded the Auto industry -11.3%.


Return on Equity

High ROE: Whilst RACE's Return on Equity (60.85%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: RACE has a higher Return on Assets than the Auto industry average last year.


Return on Capital Employed

ROCE Improving: RACE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ferrari's financial position?


Financial Position Analysis

Short Term Liabilities: RACE's short term assets (€2.7B) exceeds its short term liabilities (€1.0B)

Long Term Liabilities: RACE's short term assets (2.7B) do not cover its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: RACE's debt to equity ratio (143.5%) is considered high

Reducing Debt: RACE's debt to equity ratio has increased from 17.3% to 143.5% over the past 5 years.

Debt Coverage: RACE's debt is well covered by operating cash flow (61.7%).

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 1.347240x debt).


Next Steps

Dividend

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

0.74%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RACE's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: RACE's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 .


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

What is the CEO of Ferrari's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Louis Camilleri (64yo)

1.3yrs

Tenure

€270,412

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 ...


Management Age and Tenure

4.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: RACE's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

55yo

Average Age

Experienced Board: RACE's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: RACE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€1,319,64225 Jul 19
Louis Camilleri
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares7,886
Max Price€167.34

Ownership Breakdown


Management Team

  • Louis Camilleri (64yo)

    CEO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: €270.41k
  • Antonio Piccon

    Chief Financial Officer

    • Tenure: 1.3yrs
  • Enrico Galliera (53yo)

    Chief Marketing & Commercial Officer

    • Tenure: 9.5yrs
  • Vincenzo Regazzoni (56yo)

    Chief Manufacturing Officer

    • Tenure: 4.6yrs
  • Michael Leiters (48yo)

    Chief Technology Officer

    • Tenure: 5.8yrs
  • Nicola Boari (49yo)

    Chief Brand Diversification Officer

    • Tenure: 9.6yrs
  • Michele Antoniazzi (50yo)

    Chief Human Resources Officer

    • Tenure: 3.5yrs
  • Nicoletta Russo

    Head of Investor Relations

    • Tenure: 4.3yrs
  • Carlo Daneo

    General Counsel

    • Tenure: 4.3yrs
  • Jane Reeve

    Chief Communication Officer

    • Tenure: 0.4yrs

Board Members

  • Louis Camilleri (64yo)

    CEO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: €270.41k
  • John Elkann (43yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: €92.58k
  • Piero Ferrari (74yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: €80.55k
  • Sergio Duca (72yo)

    Senior Non-Executive Director

    • Tenure: 0yrs
    • Compensation: €94.89k
  • Adam Phillip Charles Keswick (46yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: €63.89k
  • Maria Patrizia Grieco (67yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: €72.41k
  • Eddy Cue (55yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: €68.15k
  • Elena Emilia Zambon (55yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: €72.03k
  • Giuseppina Capaldo (50yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: €73.78k
  • Delphine Arnault (44yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: €63.89k

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$28.469b
  • Shares outstanding: 185.68m
  • Website: https://www.ferrari.com

Number of Employees


Location

  • Ferrari N.V.
  • Via Abetone Inferiore n. 4
  • Maranello
  • 41053
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2FEBST (Boerse-Stuttgart)COMDEEURNo data
0RDTLSE (London Stock Exchange)COMGBCHFNo data
RACESWX (SIX Swiss Exchange)COMCHCHFNo data
RACENYSE (New York Stock Exchange)COMUSUSDNo data
RACEBIT (Borsa Italiana)YesCommon SharesITEUROct 2015
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
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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:09
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.