FERRARI NV (RACE) Stock Fundamental Analysis
USA - NYSE:RACE - NL0011585146 - Common Stock
470.03 USD
-10.3 (-2.14%)
470.03 USD
0 (0%)
Overall RACE gets a fundamental rating of 7 out of 10. We evaluated RACE against 37 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 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.
In the past 5 years RACE always reported a positive cash flow from operatings.
1.2 Ratios
RACE has a better Return On Assets (16.52%) than 100.00% of its industry peers.
The Return On Equity of RACE (45.01%) is better than 100.00% of its industry peers.
RACE has a better Return On Invested Capital (22.10%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RACE is significantly above the industry average of 5.63%.
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.
In the last couple of years the Profit Margin of RACE has grown nicely.
Looking at the Operating Margin, with a value of 29.02%, 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 Operating Margin of RACE has grown nicely.
The Gross Margin of RACE (51.20%) 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 | 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
The number of shares outstanding for RACE has been reduced compared to 5 years ago.
RACE has a worse debt/assets ratio than last year.
2.2 Solvency
RACE has an Altman-Z score of 9.79. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.79, RACE belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
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 Debt to FCF ratio of 2.32. This is amongst the best in the industry. RACE outperforms 89.19% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that RACE is somewhat dependend on debt financing.
The Debt to Equity ratio of RACE (0.89) is comparable to the rest of the 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 | 9.79 |
ROIC/WACC2.79
WACC7.93%
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 83.78% of its industry peers.
A Quick Ratio of 1.61 indicates that RACE should not have too much problems paying its short term obligations.
RACE's Quick ratio of 1.61 is amongst the best of the industry. RACE outperforms 89.19% 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 16.02% over the past year.
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 9.34% 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)16.02%
EPS 3Y23.51%
EPS 5Y17.92%
EPS Q2Q%4.37%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y16.06%
Revenue growth 5Y12.13%
Sales Q2Q%4.38%
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 8.14% on average per year.
Based on estimates for the next years, RACE will show a small growth in Revenue. The Revenue will grow by 6.78% on average per year.
EPS Next Y6.77%
EPS Next 2Y11.59%
EPS Next 3Y11.04%
EPS Next 5Y8.14%
Revenue Next Year7.33%
Revenue Next 2Y9.45%
Revenue Next 3Y8.73%
Revenue Next 5Y6.78%
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
A Price/Earnings ratio of 44.55 indicates a quite expensive valuation of RACE.
Compared to the rest of the industry, the Price/Earnings ratio of RACE indicates a somewhat cheap valuation: RACE is cheaper than 78.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. RACE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 37.69 indicates a quite expensive valuation of RACE.
RACE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RACE is cheaper than 70.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, RACE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.55 | ||
| Fwd PE | 37.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RACE is valued a bit cheaper than 72.97% 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 83.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.66 | ||
| EV/EBITDA | 29.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RACE may justify a higher PE ratio.
PEG (NY)6.58
PEG (5Y)2.49
EPS Next 2Y11.59%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, RACE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.27, RACE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, RACE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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
RACE pays out 32.88% of its income as dividend. This is a sustainable payout ratio.
RACE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.88%
EPS Next 2Y11.59%
EPS Next 3Y11.04%
470.03
-10.3 (-2.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners41.52%
Inst Owner Change-4.23%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap91.15B
Analysts75.45
Price Target555.1 (18.1%)
Short Float %1.99%
Short Ratio6.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend2.12
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)2.82%
PT rev (3m)4.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.55 | ||
| Fwd PE | 37.69 | ||
| P/S | 11.07 | ||
| P/FCF | 56.66 | ||
| P/OCF | 32.79 | ||
| P/B | 21.74 | ||
| P/tB | 67.37 | ||
| EV/EBITDA | 29.42 |
EPS(TTM)10.55
EY2.24%
EPS(NY)12.47
Fwd EY2.65%
FCF(TTM)8.3
FCFY1.76%
OCF(TTM)14.33
OCFY3.05%
SpS42.47
BVpS21.62
TBVpS6.98
PEG (NY)6.58
PEG (5Y)2.49
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%
ROICexcg growth 3Y1.86%
ROICexcg 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 | 9.79 |
F-Score8
WACC7.93%
ROIC/WACC2.79
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)16.02%
EPS 3Y23.51%
EPS 5Y17.92%
EPS Q2Q%4.37%
EPS Next Y6.77%
EPS Next 2Y11.59%
EPS Next 3Y11.04%
EPS Next 5Y8.14%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y16.06%
Revenue growth 5Y12.13%
Sales Q2Q%4.38%
Revenue Next Year7.33%
Revenue Next 2Y9.45%
Revenue Next 3Y8.73%
Revenue Next 5Y6.78%
EBIT growth 1Y15.89%
EBIT growth 3Y20.71%
EBIT growth 5Y15.51%
EBIT Next Year40.75%
EBIT Next 3Y21.74%
EBIT Next 5Y14.71%
FCF growth 1Y103.88%
FCF growth 3Y19.78%
FCF growth 5Y9.32%
OCF growth 1Y54.15%
OCF growth 3Y14.52%
OCF growth 5Y8.09%