FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
338.53 USD
+0.98 (+0.29%)
338.383 USD
-0.15 (-0.04%)
RACE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 36 industry peers in the Automobiles industry. RACE gets an excellent profitability rating and is at the same time showing great financial health properties. RACE is not valued too expensively and it also shows a decent growth rate. This makes RACE very considerable 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.
- Each year in the past 5 years RACE has been profitable.
- In the past 5 years RACE always reported a positive cash flow from operatings.
1.2 Ratios
- RACE has a Return On Assets of 16.52%. This is amongst the best in 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's Return On Invested Capital of 22.10% is amongst the best of the industry. RACE outperforms 100.00% of its industry peers.
- RACE had an Average Return On Invested Capital over the past 3 years of 19.26%. This is significantly above the industry average of 5.56%.
- 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.
- RACE's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 29.02%, RACE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of RACE has grown nicely.
- The Gross Margin of RACE (51.20%) is better than 100.00% of its industry peers.
- 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.
- Compared to 1 year ago, RACE has less shares outstanding
- The number of shares outstanding for RACE has been reduced compared to 5 years ago.
- The debt/assets ratio for RACE is higher compared to a year ago.
2.2 Solvency
- RACE has an Altman-Z score of 7.72. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
- RACE has a better Altman-Z score (7.72) than 100.00% of its industry peers.
- 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.
- The Debt to FCF ratio of RACE (2.32) is better than 94.44% of its industry peers.
- RACE has a Debt/Equity ratio of 0.89. This is a neutral value indicating RACE is somewhat dependend on debt financing.
- The Debt to Equity ratio of RACE (0.89) is comparable to the rest of the industry.
- Even though the debt/equity ratio score it not favorable for RACE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 7.72 |
ROIC/WACC2.8
WACC7.9%
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.
- RACE has a Current ratio of 2.08. This is amongst the best in the industry. RACE outperforms 83.33% 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 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
- RACE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.97%, which is quite good.
- Measured over the past years, RACE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.92% on average per year.
- RACE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.83%.
- The Revenue has been growing by 12.13% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 9.04% on average over the next years. This is quite good.
- 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 Y7.24%
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
- With a Price/Earnings ratio of 32.15, RACE can be considered very expensive at the moment.
- 77.78% of the companies in the same industry are more expensive than RACE, based on the Price/Earnings ratio.
- RACE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 29.73, which means the current valuation is very expensive for RACE.
- Based on the Price/Forward Earnings ratio, RACE is valued a bit cheaper than 69.44% of the companies in the same industry.
- RACE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.15 | ||
| Fwd PE | 29.73 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RACE indicates a somewhat cheap valuation: RACE is cheaper than 75.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, RACE is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.14 | ||
| EV/EBITDA | 21.53 |
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)4.44
PEG (5Y)1.79
EPS Next 2Y7.07%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.04%, RACE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.81, RACE pays a better dividend. On top of this RACE pays more dividend than 80.56% of the companies listed in the same industry.
- With a Dividend Yield of 1.04, RACE pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- On average, the dividend of RACE grows each year by 18.29%, which is quite nice.
- RACE has been paying a dividend for at least 10 years, so it has 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.
- The dividend of RACE is growing, but the earnings are growing slower. 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 4 / 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.