FERRARI NV (RACE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:RACE - NL0011585146 - Common Stock
285.05 EUR
-3.45 (-1.2%)
Taking everything into account, RACE scores 6 out of 10 in our fundamental rating. RACE was compared to 30 industry peers in the Automobiles industry. Both the health and profitability get an excellent rating, making RACE a very profitable company, without any liquidiy or solvency issues. RACE is valied quite expensively at the moment, while it does show a decent growth rate. This makes RACE very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year RACE was profitable.
- RACE had a positive operating cash flow in the past year.
- In the past 5 years RACE has always been profitable.
- Each year in the past 5 years RACE had a positive operating cash flow.
1.2 Ratios
- RACE's Return On Assets of 16.52% is amongst the best of the industry. RACE outperforms 96.67% of its industry peers.
- The Return On Equity of RACE (45.01%) is better than 100.00% of its industry peers.
- RACE has a better Return On Invested Capital (22.10%) than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RACE is significantly above the industry average of 6.43%.
- The last Return On Invested Capital (22.10%) for RACE is above the 3 year average (19.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.52% | ||
| ROE | 45.01% | ||
| ROIC | 22.1% |
ROA(3y)14.53%
ROA(5y)13.08%
ROE(3y)39.98%
ROE(5y)38.33%
ROIC(3y)19.26%
ROIC(5y)17.08%
1.3 Margins
- The Profit Margin of RACE (22.91%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RACE has grown nicely.
- RACE's Operating Margin of 29.02% is amongst the best of the industry. RACE outperforms 96.67% of its industry peers.
- RACE's Operating Margin has improved in the last couple of years.
- RACE has a better Gross Margin (51.20%) than 96.67% of its industry peers.
- In the last couple of years the Gross Margin of RACE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.02% | ||
| PM (TTM) | 22.91% | ||
| GM | 51.2% |
OM growth 3Y4.01%
OM growth 5Y3.02%
PM growth 3Y5.43%
PM growth 5Y4.29%
GM growth 3Y-0.75%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RACE is creating value.
- Compared to 1 year ago, RACE has less shares outstanding
- RACE has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, RACE has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.72 indicates that RACE is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.72, RACE belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
- The Debt to FCF ratio of RACE is 2.32, which is a good value as it means it would take RACE, 2.32 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.32, RACE belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.89 indicates that RACE is somewhat dependend on debt financing.
- RACE's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. RACE is outperformed by 60.00% of its industry peers.
- Although RACE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 7.72 |
ROIC/WACC2.82
WACC7.85%
2.3 Liquidity
- RACE has a Current Ratio of 2.08. This indicates that RACE is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of RACE (2.08) is better than 93.33% of its industry peers.
- RACE has a Quick Ratio of 1.61. This is a normal value and indicates that RACE is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of RACE (1.61) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.97% over the past year.
- The Earnings Per Share has been growing by 17.92% on average over the past years. This is quite good.
- Looking at the last year, RACE shows a quite strong growth in Revenue. The Revenue has grown by 11.83% in the last year.
- RACE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.13% yearly.
EPS 1Y (TTM)12.97%
EPS 3Y23.51%
EPS 5Y17.92%
EPS Q2Q%2.88%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y16.06%
Revenue growth 5Y12.13%
Sales Q2Q%7.42%
3.2 Future
- Based on estimates for the next years, RACE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.04% on average per year.
- Based on estimates for the next years, RACE will show a small growth in Revenue. The Revenue will grow by 7.12% on average per year.
EPS Next Y7.58%
EPS Next 2Y7.97%
EPS Next 3Y8.63%
EPS Next 5Y9.04%
Revenue Next Year7.83%
Revenue Next 2Y6.9%
Revenue Next 3Y7.05%
Revenue Next 5Y7.12%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 31.78 indicates a quite expensive valuation of RACE.
- RACE's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.30. RACE is around the same levels.
- RACE is valuated quite expensively with a Price/Forward Earnings ratio of 28.90.
- RACE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RACE is more expensive than 66.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. RACE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.78 | ||
| Fwd PE | 28.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RACE is valued a bit more expensive than 70.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RACE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.67 | ||
| EV/EBITDA | 21.54 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- RACE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.19
PEG (5Y)1.77
EPS Next 2Y7.97%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- RACE has a yearly dividend return of 0.97%, which is pretty low.
- Compared to an average industry Dividend Yield of 3.48, RACE is paying slightly less dividend.
- With a Dividend Yield of 0.97, RACE pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
- The dividend of RACE is nicely growing with an annual growth rate of 18.29%!
Dividend Growth(5Y)18.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 32.88% of the earnings are spent on dividend by RACE. This is a low number and sustainable payout ratio.
- RACE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.88%
EPS Next 2Y7.97%
EPS Next 3Y8.63%
FERRARI NV / RACE.MI FAQ
Can you provide the ChartMill fundamental rating for FERRARI NV?
ChartMill assigns a fundamental rating of 6 / 10 to RACE.MI.
What is the valuation status for RACE stock?
ChartMill assigns a valuation rating of 2 / 10 to FERRARI NV (RACE.MI). This can be considered as Overvalued.
Can you provide the profitability details for FERRARI NV?
FERRARI NV (RACE.MI) has a profitability rating of 9 / 10.
Can you provide the financial health for RACE stock?
The financial health rating of FERRARI NV (RACE.MI) is 8 / 10.
What is the earnings growth outlook for FERRARI NV?
The Earnings per Share (EPS) of FERRARI NV (RACE.MI) is expected to grow by 7.58% in the next year.