FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
375.35 USD
-7.63 (-1.99%)
366.46 USD
-8.89 (-2.37%)
We assign a fundamental rating of 7 out of 10 to RACE. RACE was compared to 36 industry peers in the Automobiles industry. RACE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RACE has a decent growth rate and is not valued too expensively. These ratings could make RACE a good candidate 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.
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 better Return On Assets (16.52%) than 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.
The Average Return On Invested Capital over the past 3 years for RACE is significantly above the industry average of 5.86%.
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
Looking at the Profit Margin, with a value of 22.91%, RACE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
RACE's Operating Margin has improved in the last couple of years.
RACE has a better Gross Margin (51.20%) 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
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
RACE has an Altman-Z score of 8.37. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.37, RACE belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
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's Debt to FCF ratio of 2.32 is amongst the best of the industry. RACE outperforms 91.67% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that RACE is somewhat dependend on debt financing.
RACE has a Debt to Equity ratio of 0.89. This is comparable to the rest of the industry: RACE outperforms 47.22% 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 | 8.37 |
ROIC/WACC2.83
WACC7.82%
2.3 Liquidity
A Current Ratio of 2.08 indicates that RACE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.08, RACE belongs to the best of the industry, outperforming 83.33% 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.
The Quick ratio of RACE (1.61) is better than 83.33% 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.
RACE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.83%.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.93% yearly.
RACE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y7.75%
EPS Next 2Y9.36%
EPS Next 3Y9.44%
EPS Next 5Y7.93%
Revenue Next Year7.97%
Revenue Next 2Y7.81%
Revenue Next 3Y7.6%
Revenue Next 5Y6.28%
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
The Price/Earnings ratio is 35.95, which means the current valuation is very expensive for RACE.
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.
The average S&P500 Price/Earnings ratio is at 26.28. RACE is valued slightly more expensive when compared to this.
RACE is valuated quite expensively with a Price/Forward Earnings ratio of 31.88.
Based on the Price/Forward Earnings ratio, RACE is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.52. RACE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.95 | ||
| Fwd PE | 31.88 |
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 a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.02 | ||
| EV/EBITDA | 24.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RACE may justify a higher PE ratio.
PEG (NY)4.64
PEG (5Y)2.01
EPS Next 2Y9.36%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
RACE has a yearly dividend return of 0.88%, which is pretty low.
The stock price of RACE dropped by -21.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.24, 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 0.88, RACE pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 2Y9.36%
EPS Next 3Y9.44%
375.35
-7.63 (-1.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners45.8%
Inst Owner Change2.53%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap72.79B
Revenue(TTM)6.68B
Net Income(TTM)1.59B
Analysts75.65
Price Target487.14 (29.78%)
Short Float %2.63%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend2.11
Dividend Growth(5Y)18.29%
DP32.88%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.75%
Min EPS beat(2)-1.9%
Max EPS beat(2)-1.61%
EPS beat(4)2
Avg EPS beat(4)2.94%
Min EPS beat(4)-1.9%
Max EPS beat(4)11.77%
EPS beat(8)6
Avg EPS beat(8)4.89%
EPS beat(12)9
Avg EPS beat(12)4.24%
EPS beat(16)13
Avg EPS beat(16)4.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-4.23%
Max Revenue beat(2)-1.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-4.23%
Max Revenue beat(4)2.78%
Revenue beat(8)3
Avg Revenue beat(8)0.1%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)7
Avg Revenue beat(16)0.53%
PT rev (1m)-2.02%
PT rev (3m)-9.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.95 | ||
| Fwd PE | 31.88 | ||
| P/S | 8.99 | ||
| P/FCF | 46.02 | ||
| P/OCF | 26.64 | ||
| P/B | 17.66 | ||
| P/tB | 54.73 | ||
| EV/EBITDA | 24.01 |
EPS(TTM)10.44
EY2.78%
EPS(NY)11.77
Fwd EY3.14%
FCF(TTM)8.16
FCFY2.17%
OCF(TTM)14.09
OCFY3.75%
SpS41.76
BVpS21.25
TBVpS6.86
PEG (NY)4.64
PEG (5Y)2.01
Graham Number70.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.52% | ||
| ROE | 45.01% | ||
| ROCE | 27.75% | ||
| ROIC | 22.1% | ||
| ROICexc | 27.97% | ||
| ROICexgc | 47.99% | ||
| OM | 29.02% | ||
| PM (TTM) | 22.91% | ||
| GM | 51.2% | ||
| FCFM | 19.53% |
ROA(3y)14.53%
ROA(5y)13.08%
ROE(3y)39.98%
ROE(5y)38.33%
ROIC(3y)19.26%
ROIC(5y)17.08%
ROICexc(3y)24.63%
ROICexc(5y)22.3%
ROICexgc(3y)43.96%
ROICexgc(5y)41.2%
ROCE(3y)24.18%
ROCE(5y)21.45%
ROICexgc growth 3Y1.86%
ROICexgc growth 5Y-2.51%
ROICexc growth 3Y6.8%
ROICexc growth 5Y2.03%
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%
F-Score8
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 151.4% | ||
| Cap/Sales | 14.21% | ||
| Interest Coverage | 25.44 | ||
| Cash Conversion | 87.87% | ||
| Profit Quality | 85.25% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 8.37 |
F-Score8
WACC7.82%
ROIC/WACC2.83
Cap/Depr(3y)142.28%
Cap/Depr(5y)150.94%
Cap/Sales(3y)15.05%
Cap/Sales(5y)16.58%
Profit Quality(3y)64.5%
Profit Quality(5y)56.09%
High Growth Momentum
Growth
EPS 1Y (TTM)12.97%
EPS 3Y23.51%
EPS 5Y17.92%
EPS Q2Q%2.88%
EPS Next Y7.75%
EPS Next 2Y9.36%
EPS Next 3Y9.44%
EPS Next 5Y7.93%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y16.06%
Revenue growth 5Y12.13%
Sales Q2Q%7.42%
Revenue Next Year7.97%
Revenue Next 2Y7.81%
Revenue Next 3Y7.6%
Revenue Next 5Y6.28%
EBIT growth 1Y15.89%
EBIT growth 3Y20.71%
EBIT growth 5Y15.51%
EBIT Next Year47.48%
EBIT Next 3Y19.71%
EBIT Next 5Y14.3%
FCF growth 1Y103.88%
FCF growth 3Y19.78%
FCF growth 5Y9.32%
OCF growth 1Y54.15%
OCF growth 3Y14.52%
OCF growth 5Y8.09%
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 of FERRARI NV (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.
What are the PE and PB ratios of FERRARI NV (RACE) stock?
The Price/Earnings (PE) ratio for FERRARI NV (RACE) is 35.95 and the Price/Book (PB) ratio is 17.66.
How sustainable is the dividend of FERRARI NV (RACE) stock?
The dividend rating of FERRARI NV (RACE) is 5 / 10 and the dividend payout ratio is 32.88%.