FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
338.53 USD
+0.98 (+0.29%)
338.383 USD
-0.15 (-0.04%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
- In the past year RACE was profitable.
- RACE had a positive operating cash flow in the past year.
- 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
- 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.
- RACE's Return On Equity of 45.01% is amongst the best of the industry. RACE outperforms 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 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 has a better Profit Margin (22.91%) than 100.00% of its industry peers.
- 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.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RACE is creating value.
- Compared to 1 year ago, RACE has less shares outstanding
- RACE has less shares outstanding than it did 5 years ago.
- RACE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.72 indicates that RACE is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.72, RACE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- With an excellent Debt to FCF ratio value of 2.32, RACE belongs to the best of the industry, outperforming 94.44% 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.
- With a Debt to Equity ratio value of 0.89, RACE perfoms like the industry average, outperforming 44.44% of the companies in the same 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
- 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.
- 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.
- 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 80.56% 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.
- Measured over the past years, RACE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.92% on average per year.
- Looking at the last year, RACE shows a quite strong growth in Revenue. The Revenue has grown by 11.83% in the last year.
- 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
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 32.15.
- 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.
- RACE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 29.73, which means the current valuation is very expensive for RACE.
- 69.44% of the companies in the same industry are more expensive than RACE, based on the Price/Forward Earnings ratio.
- RACE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.15 | ||
| Fwd PE | 29.73 |
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 cheaper than 80.56% of the companies in the same industry.
| 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)4.44
PEG (5Y)1.79
EPS Next 2Y7.07%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
- RACE has a Yearly Dividend Yield of 1.04%.
- RACE's Dividend Yield is rather good when compared to the industry average which is at 0.84. RACE pays more dividend than 80.56% of the companies in the same industry.
- With a Dividend Yield of 1.04, RACE pays less dividend than the S&P500 average, which is at 1.81.
| 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.
- The dividend of RACE is growing, but the earnings are growing slower. 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.