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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RACE is not valued too expensively and it also shows a decent growth rate. These ratings would make RACE suitable 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.
- Each year in the past 5 years RACE has been profitable.
- Each year in the past 5 years RACE had a positive operating cash flow.
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.
- The Return On Invested Capital of RACE (22.10%) is better 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 5.56%.
- 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.
- In the last couple of years the Profit Margin of RACE has grown nicely.
- Looking at the Operating Margin, with a value of 29.02%, RACE belongs to the top 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.
- 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
- RACE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- RACE has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for RACE has been reduced compared to 5 years ago.
- RACE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.72 indicates that RACE is not in any danger for bankruptcy at the moment.
- The Altman-Z score of RACE (7.72) is better 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.
- RACE has a better Debt to FCF ratio (2.32) 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.
- RACE has a Debt to Equity ratio (0.89) which is in line with 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/WACC2.8
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 83.33% of its industry peers.
- A Quick Ratio of 1.61 indicates that RACE should not have too much problems paying its short term obligations.
- RACE's Quick ratio of 1.61 is amongst the best of the industry. RACE outperforms 80.56% 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.
- RACE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.83%.
- Measured over the past years, RACE shows a quite strong growth in Revenue. The Revenue has been growing by 12.13% on average per year.
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
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- RACE is valuated quite expensively with a Price/Earnings ratio of 32.24.
- Compared to the rest of the industry, the Price/Earnings ratio of RACE indicates a somewhat cheap valuation: RACE is cheaper than 77.78% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of RACE to the average of the S&P500 Index (27.21), we can say RACE is valued inline with the index average.
- The Price/Forward Earnings ratio is 29.32, which means the current valuation is very expensive for RACE.
- RACE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RACE is cheaper than 69.44% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, RACE is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.24 | ||
| Fwd PE | 29.32 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RACE indicates a rather cheap valuation: RACE is cheaper than 80.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.26 | ||
| EV/EBITDA | 21.53 |
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)4.25
PEG (5Y)1.8
EPS Next 2Y7.97%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- RACE has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
- 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.
- 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
- On average, the dividend of RACE grows each year by 18.29%, which is quite nice.
- 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.
- 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 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 7.58% in the next year.