FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
337.55 USD
-4.13 (-1.21%)
334.99 USD
-2.56 (-0.76%)
Taking everything into account, RACE scores 7 out of 10 in our fundamental rating. RACE was compared to 36 industry peers in the Automobiles industry. Both the health and profitability get an excellent rating, making RACE a very profitable company, without any liquidiy or solvency issues. RACE is not valued too expensively and it also shows a decent 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.
- Each year in the past 5 years RACE had a positive operating cash flow.
1.2 Ratios
- RACE has a better Return On Assets (16.52%) than 100.00% of its industry peers.
- The Return On Equity of RACE (45.01%) is better than 100.00% of its industry peers.
- 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.
- The Average Return On Invested Capital over the past 3 years for RACE is significantly above the industry average of 5.56%.
- 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
- RACE has a Profit Margin of 22.91%. This is amongst the best in the industry. RACE outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RACE has grown nicely.
- RACE's Operating Margin of 29.02% is amongst the best of the industry. RACE outperforms 100.00% of its industry peers.
- 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.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RACE is creating value.
- RACE has less shares outstanding than it did 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 7.72. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of RACE (7.72) is better than 100.00% of its industry peers.
- 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 Debt to FCF ratio of 2.32. This is amongst the best in the industry. RACE outperforms 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.
- 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.
- Looking at the Current ratio, with a value of 2.08, RACE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 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.
- With an excellent Quick ratio value of 1.61, RACE belongs to the best of the industry, outperforming 80.56% 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.
- The Earnings Per Share has been growing by 17.92% on average over the past years. This is quite good.
- The Revenue has grown by 11.83% in the past year. This is quite good.
- 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
- RACE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.04% yearly.
- 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.
- 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.
- RACE's Price/Earnings ratio is a bit cheaper when compared to the industry. RACE is cheaper than 77.78% of the companies in the same industry.
- RACE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 29.24, 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's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.15 | ||
| Fwd PE | 29.24 |
4.2 Price Multiples
- RACE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RACE is cheaper than 75.00% of the companies 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 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)4.24
PEG (5Y)1.79
EPS Next 2Y7.97%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- RACE has a yearly dividend return of 0.97%, which is pretty low.
- RACE's Dividend Yield is rather good when compared to the industry average which is at 0.81. RACE pays more dividend than 80.56% of the companies in the same industry.
- With a Dividend Yield of 0.97, RACE pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 2Y7.97%
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 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 7.58% in the next year.