FERRARI NV (RACE.MI) Stock Fundamental Analysis
BIT:RACE - Borsa Italiana Milan - NL0011585146 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to RACE. RACE was compared to 29 industry peers in the Automobiles industry. RACE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RACE is quite expensive at the moment. It does show a decent growth rate. These ratings could make RACE a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
RACE had positive earnings in the past year.
RACE had a positive operating cash flow in the past year.
RACE had positive earnings in each of the past 5 years.
In the past 5 years RACE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.92%, RACE belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 42.89%, RACE belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
RACE has a better Return On Invested Capital (20.40%) than 92.59% of its industry peers.
RACE had an Average Return On Invested Capital over the past 3 years of 17.80%. This is significantly above the industry average of 8.71%.
The 3 year average ROIC (17.80%) for RACE is below the current ROIC(20.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 42.89% | ||
| ROIC | 20.4% |
ROA(3y)13.22%
ROA(5y)12.43%
ROE(3y)38.18%
ROE(5y)39.11%
ROIC(3y)17.8%
ROIC(5y)16.63%
1.3 Margins
The Profit Margin of RACE (22.14%) is better than 96.30% of its industry peers.
In the last couple of years the Profit Margin of RACE has declined.
The Operating Margin of RACE (27.61%) is better than 96.30% of its industry peers.
In the last couple of years the Operating Margin of RACE has grown nicely.
The Gross Margin of RACE (49.80%) is better than 92.59% of its industry peers.
RACE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.61% | ||
| PM (TTM) | 22.14% | ||
| GM | 49.8% |
OM growth 3Y9.48%
OM growth 5Y2.26%
PM growth 3Y6.08%
PM growth 5Y-1.78%
GM growth 3Y-0.95%
GM growth 5Y-1.08%
2. Health
2.1 Basic Checks
RACE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RACE has less shares outstanding
RACE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RACE has been reduced compared to a year ago.
2.2 Solvency
RACE has an Altman-Z score of 11.46. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
RACE has a Altman-Z score of 11.46. This is amongst the best in the industry. RACE outperforms 92.59% of its industry peers.
RACE has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as RACE would need 3.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.32, RACE belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
A Debt/Equity ratio of 0.93 indicates that RACE is somewhat dependend on debt financing.
The Debt to Equity ratio of RACE (0.93) is worse than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 11.46 |
ROIC/WACC2.62
WACC7.8%
2.3 Liquidity
A Current Ratio of 2.23 indicates that RACE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.23, RACE belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
A Quick Ratio of 1.74 indicates that RACE should not have too much problems paying its short term obligations.
RACE has a better Quick ratio (1.74) than 96.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
RACE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.79%, which is quite impressive.
Measured over the past years, RACE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.24% on average per year.
Looking at the last year, RACE shows a quite strong growth in Revenue. The Revenue has grown by 17.17% in the last year.
The Revenue has been growing by 11.79% on average over the past years. This is quite good.
EPS 1Y (TTM)22.79%
EPS 3Y28.2%
EPS 5Y15.24%
EPS Q2Q%32.1%
Revenue 1Y (TTM)17.17%
Revenue growth 3Y19.94%
Revenue growth 5Y11.79%
Sales Q2Q%13.99%
3.2 Future
The Earnings Per Share is expected to grow by 13.30% on average over the next years. This is quite good.
Based on estimates for the next years, RACE will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
EPS Next Y20.91%
EPS Next 2Y14.95%
EPS Next 3Y14.62%
EPS Next 5Y13.3%
Revenue Next Year10.66%
Revenue Next 2Y9.27%
Revenue Next 3Y9.28%
Revenue Next 5Y8.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 52.11 indicates a quite expensive valuation of RACE.
RACE's Price/Earnings ratio is a bit more expensive when compared to the industry. RACE is more expensive than 70.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of RACE to the average of the S&P500 Index (28.47), we can say RACE is valued expensively.
With a Price/Forward Earnings ratio of 48.42, RACE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RACE is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, RACE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.11 | ||
| Fwd PE | 48.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RACE is valued more expensive than 85.19% of the companies in the same industry.
RACE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.79 | ||
| EV/EBITDA | 35.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RACE does not grow enough to justify the current Price/Earnings ratio.
RACE has an outstanding profitability rating, which may justify a higher PE ratio.
RACE's earnings are expected to grow with 14.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.49
PEG (5Y)3.42
EPS Next 2Y14.95%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, RACE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.70, RACE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, RACE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of RACE is nicely growing with an annual growth rate of 19.85%!
Dividend Growth(5Y)19.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RACE pays out 30.70% of its income as dividend. This is a sustainable payout ratio.
RACE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.7%
EPS Next 2Y14.95%
EPS Next 3Y14.62%
FERRARI NV
BIT:RACE (2/5/2025, 4:48:20 PM)
440.85
-7.85 (-1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners37.14%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap85.49B
Analysts72.73
Price Target451.14 (2.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.34
Dividend Growth(5Y)19.85%
DP30.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.66%
Min EPS beat(2)3.51%
Max EPS beat(2)7.81%
EPS beat(4)4
Avg EPS beat(4)4.82%
Min EPS beat(4)2.16%
Max EPS beat(4)7.81%
EPS beat(8)7
Avg EPS beat(8)5.03%
EPS beat(12)11
Avg EPS beat(12)4.79%
EPS beat(16)14
Avg EPS beat(16)6.39%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)4.01%
Revenue beat(4)1
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)4.01%
Revenue beat(8)4
Avg Revenue beat(8)1.31%
Revenue beat(12)6
Avg Revenue beat(12)1.26%
Revenue beat(16)6
Avg Revenue beat(16)-1.26%
PT rev (1m)1.06%
PT rev (3m)2.45%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)1.29%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.11 | ||
| Fwd PE | 48.42 | ||
| P/S | 13.22 | ||
| P/FCF | 91.79 | ||
| P/OCF | 43.64 | ||
| P/B | 25.62 | ||
| P/tB | 81.93 | ||
| EV/EBITDA | 35.96 |
EPS(TTM)8.46
EY1.92%
EPS(NY)9.1
Fwd EY2.07%
FCF(TTM)4.8
FCFY1.09%
OCF(TTM)10.1
OCFY2.29%
SpS33.34
BVpS17.21
TBVpS5.38
PEG (NY)2.49
PEG (5Y)3.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 42.89% | ||
| ROCE | 25.78% | ||
| ROIC | 20.4% | ||
| ROICexc | 26.22% | ||
| ROICexgc | 45.67% | ||
| OM | 27.61% | ||
| PM (TTM) | 22.14% | ||
| GM | 49.8% | ||
| FCFM | 14.41% |
ROA(3y)13.22%
ROA(5y)12.43%
ROE(3y)38.18%
ROE(5y)39.11%
ROIC(3y)17.8%
ROIC(5y)16.63%
ROICexc(3y)22.91%
ROICexc(5y)21.65%
ROICexgc(3y)42.89%
ROICexgc(5y)42.13%
ROCE(3y)22.5%
ROCE(5y)21.02%
ROICexcg growth 3Y13.69%
ROICexcg growth 5Y0.4%
ROICexc growth 3Y17.52%
ROICexc growth 5Y2.49%
OM growth 3Y9.48%
OM growth 5Y2.26%
PM growth 3Y6.08%
PM growth 5Y-1.78%
GM growth 3Y-0.95%
GM growth 5Y-1.08%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.32 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 151.49% | ||
| Cap/Sales | 15.9% | ||
| Interest Coverage | 25.86 | ||
| Cash Conversion | 79.54% | ||
| Profit Quality | 65.08% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 11.46 |
F-Score7
WACC7.8%
ROIC/WACC2.62
Cap/Depr(3y)146.72%
Cap/Depr(5y)161.37%
Cap/Sales(3y)15.87%
Cap/Sales(5y)17.37%
Profit Quality(3y)65.86%
Profit Quality(5y)61.03%
High Growth Momentum
Growth
EPS 1Y (TTM)22.79%
EPS 3Y28.2%
EPS 5Y15.24%
EPS Q2Q%32.1%
EPS Next Y20.91%
EPS Next 2Y14.95%
EPS Next 3Y14.62%
EPS Next 5Y13.3%
Revenue 1Y (TTM)17.17%
Revenue growth 3Y19.94%
Revenue growth 5Y11.79%
Sales Q2Q%13.99%
Revenue Next Year10.66%
Revenue Next 2Y9.27%
Revenue Next 3Y9.28%
Revenue Next 5Y8.44%
EBIT growth 1Y16%
EBIT growth 3Y31.32%
EBIT growth 5Y14.32%
EBIT Next Year56.38%
EBIT Next 3Y24.62%
EBIT Next 5Y18.6%
FCF growth 1Y54.85%
FCF growth 3Y87.2%
FCF growth 5Y23.45%
OCF growth 1Y47.56%
OCF growth 3Y26.99%
OCF growth 5Y12.94%