FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
335.92 USD
-1.48 (-0.44%)
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 is not valued too expensively and it also shows a decent growth rate. With these ratings, RACE could be worth investigating further 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.
- In the past 5 years RACE has always been profitable.
- In the past 5 years RACE always reported a positive cash flow from operatings.
1.2 Ratios
- RACE's Return On Assets of 16.52% is amongst the best of the industry. RACE outperforms 100.00% of its industry peers.
- RACE has a better Return On Equity (45.01%) than 100.00% of its industry peers.
- RACE has a better Return On Invested Capital (22.10%) than 100.00% of its industry peers.
- 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 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.
- In the last couple of years the Profit Margin of RACE has grown nicely.
- 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.
- RACE's Gross Margin of 51.20% is amongst the best of the industry. RACE outperforms 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.
- Compared to 1 year ago, RACE has less shares outstanding
- The number of shares outstanding for RACE has been reduced compared to 5 years ago.
- Compared to 1 year ago, RACE has a worse debt to assets ratio.
2.2 Solvency
- RACE has an Altman-Z score of 7.61. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of RACE (7.61) 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 94.29% 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.
- Looking at the Debt to Equity ratio, with a value of 0.89, RACE is in line with its industry, outperforming 42.86% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for RACE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 7.61 |
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 82.86% of its industry peers.
- 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 80.00% 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.
- 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
- 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 31.39.
- Based on the Price/Earnings ratio, RACE is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
- RACE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 29.04, the valuation of RACE can be described as expensive.
- 71.43% of the companies in the same industry are more expensive than RACE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. RACE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.39 | ||
| Fwd PE | 29.04 |
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.
- 82.86% of the companies in the same industry are more expensive than RACE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.18 | ||
| EV/EBITDA | 21.13 |
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)4.34
PEG (5Y)1.75
EPS Next 2Y7.07%
EPS Next 3Y8.21%
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 0.84, 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
- 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.
- RACE's earnings are growing slower than its dividend. 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.