FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
337.4 USD
-3.05 (-0.9%)
337.77 USD
+0.37 (+0.11%)
Taking everything into account, RACE scores 7 out of 10 in our fundamental rating. RACE was compared to 35 industry peers in the Automobiles industry. RACE gets an excellent profitability rating and is at the same time showing great financial health properties. RACE has a correct valuation and a medium growth rate. These ratings could make RACE a good candidate 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.
- RACE had positive earnings in each of the past 5 years.
- RACE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of RACE (16.52%) is better than 100.00% of its industry peers.
- With an excellent Return On Equity value of 45.01%, RACE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 22.10%, RACE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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
- RACE's Profit Margin of 22.91% is amongst the best of the industry. RACE outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RACE has grown nicely.
- 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.
- RACE's Operating Margin has improved in the last couple of years.
- The Gross Margin of RACE (51.20%) is better than 100.00% 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
- 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
- Compared to 5 years ago, RACE has less shares outstanding
- RACE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.71 indicates that RACE is not in any danger for bankruptcy at the moment.
- RACE's Altman-Z score of 7.71 is amongst the best of the industry. RACE outperforms 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 94.29% of its industry peers.
- A Debt/Equity ratio of 0.89 indicates that RACE is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.89, RACE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- 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 | 7.71 |
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.
- Looking at the Current ratio, with a value of 2.08, RACE belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
- A Quick Ratio of 1.61 indicates that RACE should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.61, RACE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| 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.
- RACE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.92% yearly.
- The Revenue has grown by 11.83% in the past year. This is quite good.
- 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.
- RACE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.12% yearly.
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
- 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
- Based on the Price/Earnings ratio of 31.77, the valuation of RACE can be described as expensive.
- RACE's Price/Earnings ratio is a bit cheaper when compared to the industry. RACE is cheaper than 77.14% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, RACE is valued at the same level.
- RACE is valuated quite expensively with a Price/Forward Earnings ratio of 29.39.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RACE indicates a somewhat cheap valuation: RACE is cheaper than 71.43% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, RACE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.77 | ||
| Fwd PE | 29.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RACE is valued a bit cheaper than 74.29% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RACE is valued cheaper than 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.67 | ||
| EV/EBITDA | 21.48 |
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)4.39
PEG (5Y)1.77
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 0.84, RACE pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, RACE's dividend is way lower than the S&P500 average.
| 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
- RACE pays out 32.88% of its income as dividend. This is a 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 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.