FERRARI NV (RACE) Stock Fundamental Analysis
NYSE:RACE - New York Stock Exchange, Inc. - NL0011585146 - Common Stock - Currency: USD
Overall RACE gets a fundamental rating of 6 out of 10. We evaluated RACE against 40 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.
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.
RACE had positive earnings in 4 of the past 5 years.
RACE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RACE has a better Return On Assets (15.92%) than 97.37% of its industry peers.
RACE has a better Return On Equity (42.89%) than 97.37% of its industry peers.
RACE has a Return On Invested Capital of 20.40%. This is amongst the best in the industry. RACE outperforms 97.37% of its industry peers.
RACE had an Average Return On Invested Capital over the past 3 years of 17.80%. This is significantly above the industry average of 9.10%.
The 3 year average ROIC (17.80%) for RACE is below the current ROIC(20.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 42.89% | ||
| ROIC | 20.4% |
ROA(3y)13.22%
ROA(5y)12.43%
ROE(3y)38.18%
ROE(5y)39.11%
ROIC(3y)17.8%
ROIC(5y)16.63%
1.3 Margins
RACE has a better Profit Margin (22.14%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of RACE has declined.
RACE's Operating Margin of 27.61% is amongst the best of the industry. RACE outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of RACE has grown nicely.
The Gross Margin of RACE (49.80%) is better 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 | 27.61% | ||
| PM (TTM) | 22.14% | ||
| GM | 49.8% |
OM growth 3Y9.48%
OM growth 5Y2.26%
PM growth 3Y6.08%
PM growth 5Y-1.78%
GM growth 3Y-0.95%
GM growth 5Y-1.08%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 12.24 indicates that RACE is not in any danger for bankruptcy at the moment.
RACE's Altman-Z score of 12.24 is amongst the best of the industry. RACE outperforms 97.37% of its industry peers.
The Debt to FCF ratio of RACE is 3.32, which is a good value as it means it would take RACE, 3.32 years of fcf income to pay off all of its debts.
RACE has a better Debt to FCF ratio (3.32) than 92.11% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that RACE is somewhat dependend on debt financing.
RACE has a worse Debt to Equity ratio (0.93) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 12.24 |
ROIC/WACC2.61
WACC7.81%
2.3 Liquidity
A Current Ratio of 2.23 indicates that RACE has no problem at all paying its short term obligations.
RACE has a Current ratio of 2.23. This is in the better half of the industry: RACE outperforms 76.32% of its industry peers.
RACE has a Quick Ratio of 1.74. 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 1.74, RACE belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
RACE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.79%, which is quite impressive.
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.
EPS 1Y (TTM)22.79%
EPS 3Y23.51%
EPS 5Y17.92%
EPS Q2Q%32.1%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.99%
3.2 Future
RACE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.04% yearly.
The Revenue is expected to grow by 8.09% on average over the next years. This is quite good.
EPS Next Y7.62%
EPS Next 2Y10.75%
EPS Next 3Y12.47%
EPS Next 5Y11.04%
Revenue Next Year7.89%
Revenue Next 2Y8.59%
Revenue Next 3Y8.47%
Revenue Next 5Y8.09%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 57.01, RACE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RACE is valued a bit cheaper than 71.05% of the companies in the same industry.
RACE is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 52.95, the valuation of RACE can be described as expensive.
Based on the Price/Forward Earnings ratio, RACE is valued a bit cheaper than 73.68% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RACE to the average of the S&P500 Index (22.68), we can say RACE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.01 | ||
| Fwd PE | 52.95 |
4.2 Price Multiples
68.42% of the companies in the same industry are more expensive than RACE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RACE indicates a rather cheap valuation: RACE is cheaper than 84.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.37 | ||
| EV/EBITDA | 38.94 |
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.
A more expensive valuation may be justified as RACE's earnings are expected to grow with 12.47% in the coming years.
PEG (NY)7.49
PEG (5Y)3.18
EPS Next 2Y10.75%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
RACE has a yearly dividend return of 0.51%, which is pretty low.
RACE's Dividend Yield is a higher than the industry average which is at 3.93.
With a Dividend Yield of 0.51, RACE pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of RACE is nicely growing with an annual growth rate of 19.85%!
RACE has been paying a dividend for over 5 years, so it has already some track record.
RACE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)19.85%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
30.70% 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.
DP30.7%
EPS Next 2Y10.75%
EPS Next 3Y12.47%
503.43
-4.72 (-0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners37.14%
Inst Owner Change-1.81%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap97.63B
Analysts73.64
Price Target477.44 (-5.16%)
Short Float %1.27%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend1.34
Dividend Growth(5Y)19.85%
DP30.7%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.66%
Min EPS beat(2)3.51%
Max EPS beat(2)7.81%
EPS beat(4)4
Avg EPS beat(4)4.82%
Min EPS beat(4)2.16%
Max EPS beat(4)7.81%
EPS beat(8)7
Avg EPS beat(8)5.03%
EPS beat(12)11
Avg EPS beat(12)4.79%
EPS beat(16)14
Avg EPS beat(16)6.39%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)4.01%
Revenue beat(4)1
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)4.01%
Revenue beat(8)4
Avg Revenue beat(8)1.31%
Revenue beat(12)6
Avg Revenue beat(12)1.26%
Revenue beat(16)6
Avg Revenue beat(16)-1.26%
PT rev (1m)3.11%
PT rev (3m)-0.36%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.01 | ||
| Fwd PE | 52.95 | ||
| P/S | 14.46 | ||
| P/FCF | 100.37 | ||
| P/OCF | 47.72 | ||
| P/B | 28.01 | ||
| P/tB | 89.59 | ||
| EV/EBITDA | 38.94 |
EPS(TTM)8.83
EY1.75%
EPS(NY)9.51
Fwd EY1.89%
FCF(TTM)5.02
FCFY1%
OCF(TTM)10.55
OCFY2.1%
SpS34.81
BVpS17.97
TBVpS5.62
PEG (NY)7.49
PEG (5Y)3.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 42.89% | ||
| ROCE | 25.78% | ||
| ROIC | 20.4% | ||
| ROICexc | 26.22% | ||
| ROICexgc | 45.67% | ||
| OM | 27.61% | ||
| PM (TTM) | 22.14% | ||
| GM | 49.8% | ||
| FCFM | 14.41% |
ROA(3y)13.22%
ROA(5y)12.43%
ROE(3y)38.18%
ROE(5y)39.11%
ROIC(3y)17.8%
ROIC(5y)16.63%
ROICexc(3y)22.91%
ROICexc(5y)21.65%
ROICexgc(3y)42.89%
ROICexgc(5y)42.13%
ROCE(3y)22.5%
ROCE(5y)21.02%
ROICexcg growth 3Y13.69%
ROICexcg growth 5Y0.4%
ROICexc growth 3Y17.52%
ROICexc growth 5Y2.49%
OM growth 3Y9.48%
OM growth 5Y2.26%
PM growth 3Y6.08%
PM growth 5Y-1.78%
GM growth 3Y-0.95%
GM growth 5Y-1.08%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.32 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 151.49% | ||
| Cap/Sales | 15.9% | ||
| Interest Coverage | 25.86 | ||
| Cash Conversion | 79.54% | ||
| Profit Quality | 65.08% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 12.24 |
F-Score7
WACC7.81%
ROIC/WACC2.61
Cap/Depr(3y)146.72%
Cap/Depr(5y)161.37%
Cap/Sales(3y)15.87%
Cap/Sales(5y)17.37%
Profit Quality(3y)65.86%
Profit Quality(5y)61.03%
High Growth Momentum
Growth
EPS 1Y (TTM)22.79%
EPS 3Y23.51%
EPS 5Y17.92%
EPS Q2Q%32.1%
EPS Next Y7.62%
EPS Next 2Y10.75%
EPS Next 3Y12.47%
EPS Next 5Y11.04%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.99%
Revenue Next Year7.89%
Revenue Next 2Y8.59%
Revenue Next 3Y8.47%
Revenue Next 5Y8.09%
EBIT growth 1Y16%
EBIT growth 3Y31.32%
EBIT growth 5Y14.32%
EBIT Next Year56.38%
EBIT Next 3Y24.62%
EBIT Next 5Y18.6%
FCF growth 1Y54.85%
FCF growth 3Y87.2%
FCF growth 5Y23.45%
OCF growth 1Y47.56%
OCF growth 3Y26.99%
OCF growth 5Y12.94%