FERRARI NV (RACE) Stock Fundamental Analysis
USA - NYSE:RACE - NL0011585146 - Common Stock
383.15 USD
-6.68 (-1.71%)
383 USD
-0.15 (-0.04%)
We assign a fundamental rating of 7 out of 10 to RACE. RACE was compared to 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 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
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.
Each year in the past 5 years RACE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.52%, RACE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for RACE is significantly above the industry average of 5.83%.
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
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.
RACE's Profit Margin has improved in the last couple of years.
The Operating Margin of RACE (29.02%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of RACE has grown nicely.
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.
The number of shares outstanding for RACE has been reduced compared to 1 year ago.
RACE has less shares outstanding than it did 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 8.64. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RACE (8.64) is better than 94.44% 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 88.89% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that RACE is somewhat dependend on debt financing.
RACE's Debt to Equity ratio of 0.89 is in line compared to the rest of the industry. RACE outperforms 50.00% 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 | 8.64 |
ROIC/WACC2.78
WACC7.94%
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.
Looking at the Current ratio, with a value of 2.08, RACE belongs to the top of the industry, outperforming 86.11% 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.
RACE has a Quick ratio of 1.61. This is amongst the best in the industry. RACE outperforms 86.11% 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 13.43%, which is quite good.
The Earnings Per Share has been growing by 17.92% on average over the past years. This is quite good.
Looking at the last year, RACE shows a quite strong growth in Revenue. The Revenue has grown by 11.83% in the last year.
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)13.43%
EPS 3Y23.51%
EPS 5Y17.92%
EPS Q2Q%4.62%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y16.06%
Revenue growth 5Y12.13%
Sales Q2Q%9.29%
3.2 Future
The Earnings Per Share is expected to grow by 8.35% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.41% on average over the next years.
EPS Next Y7.2%
EPS Next 2Y9.88%
EPS Next 3Y9.62%
EPS Next 5Y8.35%
Revenue Next Year7.72%
Revenue Next 2Y8.75%
Revenue Next 3Y7.87%
Revenue Next 5Y6.41%
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
RACE is valuated quite expensively with a Price/Earnings ratio of 36.74.
77.78% of the companies in the same industry are more expensive than RACE, based on the Price/Earnings ratio.
RACE is valuated rather expensively when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.39, RACE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RACE is valued a bit cheaper than 69.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RACE to the average of the S&P500 Index (34.08), we can say RACE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 32.39 |
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.
RACE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RACE is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.2 | ||
| EV/EBITDA | 25.03 |
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.
The excellent profitability rating of RACE may justify a higher PE ratio.
PEG (NY)5.11
PEG (5Y)2.05
EPS Next 2Y9.88%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, RACE is not a good candidate for dividend investing.
RACE's Dividend Yield is rather good when compared to the industry average which is at 3.32. RACE pays more dividend than 80.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RACE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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 2Y9.88%
EPS Next 3Y9.62%
383.15
-6.68 (-1.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners41.88%
Inst Owner Change2.58%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap74.30B
Revenue(TTM)6.68B
Net Income(TTM)1.59B
Analysts76.52
Price Target498.45 (30.09%)
Short Float %2.42%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)-9.36%
PT rev (3m)-7.68%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 32.39 | ||
| P/S | 9.22 | ||
| P/FCF | 47.2 | ||
| P/OCF | 27.32 | ||
| P/B | 18.11 | ||
| P/tB | 56.13 | ||
| EV/EBITDA | 25.03 |
EPS(TTM)10.43
EY2.72%
EPS(NY)11.83
Fwd EY3.09%
FCF(TTM)8.12
FCFY2.12%
OCF(TTM)14.03
OCFY3.66%
SpS41.56
BVpS21.16
TBVpS6.83
PEG (NY)5.11
PEG (5Y)2.05
Graham Number70.46
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 | 8.64 |
F-Score8
WACC7.94%
ROIC/WACC2.78
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)13.43%
EPS 3Y23.51%
EPS 5Y17.92%
EPS Q2Q%4.62%
EPS Next Y7.2%
EPS Next 2Y9.88%
EPS Next 3Y9.62%
EPS Next 5Y8.35%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y16.06%
Revenue growth 5Y12.13%
Sales Q2Q%9.29%
Revenue Next Year7.72%
Revenue Next 2Y8.75%
Revenue Next 3Y7.87%
Revenue Next 5Y6.41%
EBIT growth 1Y15.89%
EBIT growth 3Y20.71%
EBIT growth 5Y15.51%
EBIT Next Year46.53%
EBIT Next 3Y22.29%
EBIT Next 5Y14.41%
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 36.74 and the Price/Book (PB) ratio is 18.11.
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%.