FERRARI NV (RACE) Stock Fundamental Analysis
USA - NYSE:RACE - NL0011585146 - Common Stock
478 USD
-1.36 (-0.28%)
475 USD
-3 (-0.63%)
We assign a fundamental rating of 7 out of 10 to RACE. RACE was compared to 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 decent growth rate and is not valued too expensively. 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.
RACE had positive earnings in each of the past 5 years.
Each year in the past 5 years RACE had a positive operating cash flow.
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 has a better Return On Equity (45.01%) than 100.00% of its industry peers.
RACE has a Return On Invested Capital of 22.10%. This is amongst the best in the industry. RACE outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RACE is significantly above the industry average of 5.63%.
The 3 year average ROIC (19.26%) for RACE is below the current ROIC(22.10%), indicating increased profibility in the last year.
| 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.
RACE has a better Operating Margin (29.02%) than 100.00% of its industry peers.
RACE's Operating Margin has improved in the last couple of years.
RACE has a better Gross Margin (51.20%) than 100.00% of its industry peers.
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
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
An Altman-Z score of 10.04 indicates that RACE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.04, 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 better Debt to FCF ratio (2.32) than 89.19% 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 (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 | 10.04 |
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.
With an excellent Current ratio value of 2.08, RACE belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that RACE should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.61, RACE belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
| 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.
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 9.34% in the last year.
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
RACE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.14% yearly.
The Revenue is expected to grow by 6.78% on average over the next years.
EPS Next Y6.77%
EPS Next 2Y11.59%
EPS Next 3Y11.04%
EPS Next 5Y8.14%
Revenue Next Year7.06%
Revenue Next 2Y9.17%
Revenue Next 3Y8.42%
Revenue Next 5Y6.78%
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
A Price/Earnings ratio of 45.92 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.
Compared to an average S&P500 Price/Earnings ratio of 27.30, RACE is valued quite expensively.
RACE is valuated quite expensively with a Price/Forward Earnings ratio of 38.83.
70.27% of the companies in the same industry are more expensive than RACE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RACE to the average of the S&P500 Index (22.73), we can say RACE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.92 | ||
| Fwd PE | 38.83 |
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.
83.78% of the companies in the same industry are more expensive than RACE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.37 | ||
| EV/EBITDA | 30.38 |
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)6.78
PEG (5Y)2.56
EPS Next 2Y11.59%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
RACE has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 3.66, RACE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, RACE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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 2Y11.59%
EPS Next 3Y11.04%
478
-1.36 (-0.28%)
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 Cap92.69B
Analysts75.45
Price Target540.86 (13.15%)
Short Float %1.98%
Short Ratio6.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)0.18%
PT rev (3m)1.72%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.92 | ||
| Fwd PE | 38.83 | ||
| P/S | 11.4 | ||
| P/FCF | 58.37 | ||
| P/OCF | 33.78 | ||
| P/B | 22.4 | ||
| P/tB | 69.41 | ||
| EV/EBITDA | 30.38 |
EPS(TTM)10.41
EY2.18%
EPS(NY)12.31
Fwd EY2.58%
FCF(TTM)8.19
FCFY1.71%
OCF(TTM)14.15
OCFY2.96%
SpS41.93
BVpS21.34
TBVpS6.89
PEG (NY)6.78
PEG (5Y)2.56
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 | 10.04 |
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 Year7.06%
Revenue Next 2Y9.17%
Revenue Next 3Y8.42%
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%