FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
338.45 USD
+4.99 (+1.5%)
339.9 USD
+1.45 (+0.43%)
RACE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 35 industry peers in the Automobiles industry. RACE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RACE has a correct valuation and a medium growth rate. These ratings would make RACE suitable for quality investing!
1. Profitability
1.1 Basic Checks
- RACE had positive earnings in the past year.
- In the past year RACE had a positive cash flow from operations.
- In the past 5 years RACE has always been profitable.
- In the past 5 years RACE always reported a positive cash flow from operatings.
1.2 Ratios
- RACE's Return On Assets of 16.52% is amongst the best of the industry. RACE outperforms 100.00% of its industry peers.
- RACE has a Return On Equity of 45.01%. This is amongst the best in the industry. RACE outperforms 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 5.29%.
- The 3 year average ROIC (19.26%) for RACE is below the current ROIC(22.10%), indicating increased profibility in the last year.
| 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.
- RACE's Profit Margin has improved in the last couple of years.
- RACE has a better Operating Margin (29.02%) than 100.00% of its industry peers.
- RACE's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 51.20%, RACE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- RACE's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RACE is creating value.
- The number of shares outstanding for RACE has been reduced compared to 1 year ago.
- Compared to 5 years ago, RACE has less shares outstanding
- The debt/assets ratio for RACE is higher compared to a year ago.
2.2 Solvency
- RACE has an Altman-Z score of 7.53. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.53, RACE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- RACE has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as RACE would need 2.32 years to pay back of all of its debts.
- RACE has a better Debt to FCF ratio (2.32) than 94.29% of its industry peers.
- 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 in line compared to the rest of the industry. RACE outperforms 42.86% 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 | 7.53 |
ROIC/WACC2.8
WACC7.9%
2.3 Liquidity
- A Current Ratio of 2.08 indicates that RACE has no problem at all paying its short term obligations.
- RACE has a Current ratio of 2.08. This is amongst the best in the industry. RACE outperforms 82.86% 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.
- RACE has a better Quick ratio (1.61) than 80.00% 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.
- RACE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.92% yearly.
- 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.
- The Revenue is expected to grow by 7.12% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y7.07%
EPS Next 3Y8.21%
EPS Next 5Y9.04%
Revenue Next Year7.83%
Revenue Next 2Y6.9%
Revenue Next 3Y7.05%
Revenue Next 5Y7.12%
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 decreasing.
- 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
- RACE is valuated quite expensively with a Price/Earnings ratio of 31.51.
- 77.14% of the companies in the same industry are more expensive than RACE, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.39. RACE is around the same levels.
- The Price/Forward Earnings ratio is 29.14, which means the current valuation is very expensive for RACE.
- Based on the Price/Forward Earnings ratio, RACE is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, RACE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.51 | ||
| Fwd PE | 29.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RACE is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, RACE is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.33 | ||
| EV/EBITDA | 20.82 |
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.
PEG (NY)4.35
PEG (5Y)1.76
EPS Next 2Y7.07%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
- RACE has a Yearly Dividend Yield of 1.04%.
- Compared to an average industry Dividend Yield of 0.84, RACE pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.04, RACE pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- The dividend of RACE is nicely growing with an annual growth rate of 18.29%!
- RACE has paid a dividend for at least 10 years, which is a reliable track record.
- RACE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)18.29%
Div Incr Years4
Div Non Decr Years4
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 2Y7.07%
EPS Next 3Y8.21%
FERRARI NV / RACE FAQ
Can you provide the ChartMill fundamental rating for FERRARI NV?
ChartMill assigns a fundamental rating of 7 / 10 to RACE.
What is the valuation status for RACE stock?
ChartMill assigns a valuation rating of 5 / 10 to FERRARI NV (RACE). This can be considered as Fairly Valued.
Can you provide the profitability details for FERRARI NV?
FERRARI NV (RACE) has a profitability rating of 9 / 10.
Can you provide the financial health for RACE stock?
The financial health rating of FERRARI NV (RACE) is 8 / 10.
What is the earnings growth outlook for FERRARI NV?
The Earnings per Share (EPS) of FERRARI NV (RACE) is expected to grow by 7.24% in the next year.