FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
340.45 USD
+1.92 (+0.57%)
340.45 USD
0 (0%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
- In the past year RACE had a positive cash flow from operations.
- In the past 5 years RACE has always been profitable.
- RACE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RACE has a better Return On Assets (16.52%) than 100.00% of its industry peers.
- 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.
- The Return On Invested Capital of RACE (22.10%) is better 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 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
- RACE's Profit Margin of 22.91% is amongst the best of the industry. RACE outperforms 100.00% of its industry peers.
- RACE's Profit Margin has improved in the last couple of years.
- RACE has a Operating Margin of 29.02%. This is amongst the best in the industry. RACE outperforms 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.
- 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.
- Compared to 1 year ago, RACE has less shares outstanding
- Compared to 5 years ago, RACE has less shares outstanding
- Compared to 1 year ago, RACE has a worse debt to assets ratio.
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.
- RACE's Altman-Z score of 7.72 is amongst the best of the industry. RACE outperforms 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.
- Looking at the Debt to FCF ratio, with a value of 2.32, RACE belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- 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.
- 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 | 7.72 |
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's Current ratio of 2.08 is amongst the best of the industry. RACE outperforms 82.86% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 1.61, RACE is in the better half of the industry, outperforming 80.00% 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.
- RACE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.92% yearly.
- The Revenue has grown by 11.83% in the past year. This is quite good.
- The Revenue has been growing by 12.13% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 9.04% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.12% on average over the next years.
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.
- 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 32.33.
- 77.14% of the companies in the same industry are more expensive than RACE, based on the Price/Earnings ratio.
- 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.
- With a Price/Forward Earnings ratio of 29.90, RACE can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, RACE is valued a bit cheaper than 71.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. RACE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 29.9 |
4.2 Price Multiples
- RACE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RACE is cheaper than 74.29% of the companies in the same industry.
- RACE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RACE is cheaper than 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.37 | ||
| EV/EBITDA | 21.53 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- RACE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.47
PEG (5Y)1.8
EPS Next 2Y7.07%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
- RACE has a Yearly Dividend Yield of 1.04%.
- 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 1.81, RACE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 2Y7.07%
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.