FERRARI NV (RACE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RACE - NL0011585146 - Common Stock
335.79 USD
+2.33 (+0.7%)
RACE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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. This makes RACE very considerable 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.
- RACE had positive earnings in each of the past 5 years.
- RACE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RACE has a Return On Assets of 16.52%. This is amongst the best in 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.
- 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.
- 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
- The Profit Margin of RACE (22.91%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RACE has grown nicely.
- 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.
- RACE has a Gross Margin of 51.20%. This is amongst the best in 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
- 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
- RACE has less shares outstanding than it did 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 7.53. This indicates that RACE is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.53, RACE belongs to the best 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.
- 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.
- RACE has a Debt to Equity ratio of 0.89. This is comparable to the rest of the industry: RACE outperforms 42.86% of 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 | 7.53 |
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.
- RACE has a better Quick ratio (1.61) 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.
- 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.
- Based on estimates for the next years, RACE will show a small growth in Revenue. The Revenue will grow by 7.12% on average per year.
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.
- 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
- With a Price/Earnings ratio of 31.27, RACE can be considered very expensive at the moment.
- 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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 28.92, RACE can be considered very expensive at the moment.
- RACE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RACE is cheaper than 71.43% of the companies in the same industry.
- RACE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.27 | ||
| Fwd PE | 28.92 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RACE indicates a somewhat cheap valuation: RACE is cheaper than 74.29% of the companies listed 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 | 40.01 | ||
| EV/EBITDA | 20.82 |
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)4.32
PEG (5Y)1.74
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.
- RACE's Dividend Yield is a higher than the industry average which is at 0.84.
- With a Dividend Yield of 1.04, RACE pays less dividend than the S&P500 average, which is at 1.82.
| 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.