Ferrari NV (IT:RACE)
:RACE
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Ferrari
(RACE)
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Rating:77Outperform
Price Target:
€314.00
▼(-2.21% Downside)
Action:ReiteratedDate:02/21/26
The score is primarily supported by exceptional profitability and strong cash generation, reinforced by positive earnings-call guidance and long order-book visibility. It is tempered by mixed technical positioning (below longer-term moving averages) and a relatively expensive valuation (P/E ~34.5 with a low dividend yield).
Positive Factors
High Profitability & Margins
Ferrari's sustained premium margins reflect durable pricing power from brand exclusivity, a high-margin mix (personalizations and limited-run models) and efficient operations. These margins support reinvestment, R&D and shareholder returns, making profitability resilient across cycles.
Negative Factors
Material Leverage
Leverage has improved but remains material; debt amplifies ROE but reduces resilience to macro shocks. In a tightening-rate or weaker-demand scenario, interest and refinancing exposure could constrain capital allocation and raise funding costs, limiting strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Ferrari's sustained premium margins reflect durable pricing power from brand exclusivity, a high-margin mix (personalizations and limited-run models) and efficient operations. These margins support reinvestment, R&D and shareholder returns, making profitability resilient across cycles.
Read all positive factors
Ferrari (RACE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€68.81B
Dividend Yield0.93%
Average Volume (3M)517.69K
Price to Earnings (P/E)37.1
Beta (1Y)0.90
Revenue Growth7.03%
EPS Growth5.87%
CountryIT
Employees5,465
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)8.97
Shares Outstanding193,923,500
10 Day Avg. Volume514,067
30 Day Avg. Volume517,688
Financial Highlights & Ratios
PEG Ratio5.89
Price to Book (P/B)14.53
Price to Sales (P/S)7.94
P/FCF Ratio30.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€391.55Price Target Upside21.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)9.65
Revenue Forecast (FY)€7.57B
Ferrari Business Overview & Revenue Model
Company Description
Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hyper cars; one-off and track cars; and Icona cars. It also pro...
How the Company Makes Money
Ferrari primarily makes money by selling luxury sports cars and related services. Its key revenue streams include: (1) Sales of cars: Revenue from delivering Ferrari-branded vehicles to customers, typically through a controlled network of authoriz...
Ferrari Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call highlighted strong financial and operational performance in FY2025 — record revenue (>EUR 7.1bn), robust margins (EBIT margin 29.5%), and exceptional industrial free cash flow (+~50% to >EUR 1.5bn), together with successful product launches and racing achievements. Key near-term headwinds include an acknowledged EUR ~200m FX drag for 2026, tariff impacts, higher SG&A and R&D/F1 costs and model-changeover timing that creates delivery phasing risk. On balance, the company demonstrated execution strength, ample cash generation and a clear strategic roadmap, while flagging manageable but meaningful macro and timing challenges for 2026.Positive Updates
Record Revenue
Net revenues exceeded EUR 7.1 billion in FY2025, representing year-over-year growth of ~8% at constant currency (7% including FX headwinds).
Negative Updates
Significant FX Headwind for 2026
Management expects an approximately EUR 200 million negative impact to 2026 results from foreign exchange (assumption: USD ~120/EUR and current JPY rates) after considering hedges.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue
Net revenues exceeded EUR 7.1 billion in FY2025, representing year-over-year growth of ~8% at constant currency (7% including FX headwinds).
Read all positive updates
Company Guidance
Ferrari guided 2026 as “another year of growth,” driven by a stronger product mix (with the clearest improvement in H2) and model ramp‑ups, while expecting personalizations to remain around 20% of cars & spare‑parts revenues; higher SG&A (brand, retail and digital), higher D&A, roughly stable R&D on the P&L (with possible F1 volatility) and CapEx slightly above 2025. Management assumes a USD ≈120/EUR rate and flagged a net FX headwind of about €200m (including hedges), an effective tax rate of ≈23% (Patent Box benefit only), and expects industrial free cash flow to stay robust after 2025’s >€1.5bn (≈+50% YoY) generation; 2025 base metrics were revenues >€7.1bn, EBIT >€2.1bn (EBIT margin 29.5%, EBITDA margin 38.8%), shipments kept flat YoY, order book visibility into end‑2027, and the continuation of new‑model launches (7 in production) including F80 ramp and Ferrari Luce full introduction (deliveries starting Q4).Ferrari Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.15B | 6.68B | 5.97B | 5.10B | 4.27B |
| Gross Profit | 3.69B | 3.35B | 2.97B | 2.45B | 2.19B |
| EBITDA | 2.13B | 2.59B | 2.29B | 1.77B | 1.53B |
| Net Income | 1.60B | 1.52B | 1.25B | 932.61M | 830.77M |
Balance Sheet | |||||
| Total Assets | 9.86B | 9.50B | 8.05B | 7.77B | 6.86B |
| Cash, Cash Equivalents and Short-Term Investments | 1.55B | 1.75B | 1.13B | 1.40B | 1.35B |
| Total Debt | 3.02B | 3.35B | 2.48B | 2.81B | 2.63B |
| Total Liabilities | 5.95B | 5.95B | 4.98B | 5.16B | 4.65B |
| Stockholders Equity | 3.91B | 3.53B | 3.06B | 2.59B | 2.21B |
Cash Flow | |||||
| Free Cash Flow | 1.86B | 937.50M | 847.73M | 598.72M | 545.58M |
| Operating Cash Flow | 2.35B | 1.93B | 1.72B | 1.40B | 1.28B |
| Investing Cash Flow | -944.14M | -987.11M | -866.45M | -805.41M | -732.74M |
| Financing Cash Flow | -1.67B | -324.76M | -1.11B | -553.56M | -579.67M |
Ferrari Technical Analysis
Positive
321.10
Price Trends
299.97
Positive
306.65
Positive
349.21
Negative
Market Momentum
3.84
Negative
65.64
Neutral
81.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RACE, the sentiment is Positive. The current price of 321.1 is above the 20-day moving average (MA) of 292.09, above the 50-day MA of 299.97, and below the 200-day MA of 349.21, indicating a neutral trend. The MACD of 3.84 indicates Negative momentum. The RSI at 65.64 is Neutral, neither overbought nor oversold. The STOCH value of 81.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:RACE.
Ferrari Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | €13.83B | 8.01 | 18.89% | 2.32% | 0.75% | -2.37% | |
77 Outperform | €68.81B | 37.12 | 43.22% | 0.93% | 7.03% | 5.87% | |
64 Neutral | €5.82B | 12.41 | 8.81% | 4.33% | 0.04% | 5.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | €4.04B | 16.05 | ― | 3.23% | ― | ― | |
48 Neutral | €23.04B | -0.34 | 26.27% | 7.23% | -2.15% | -525.09% | |
46 Neutral | €57.73M | -54.82 | -26.84% | ― | -9.84% | -4133.33% |
* Consumer Cyclical Sector Average
IT:RACE
Ferrari
286.10
-128.08
-30.92%
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6.49
-1.81
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54.20
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1.18%
IT:PINF
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IT:PIRC
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.