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Ferrari NV (IT:RACE)
:RACE
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Ferrari
(NYSE:RACE)
79Outperform
Positive Factors
Earnings Visibility
Ferrari's impressive order book is filled through 2026, with most models substantially sold out, supporting earnings visibility.
Financial Performance
Ferrari's strong financial performance is highlighted by an EBIT margin of 29% or more and being sold out for the next two years.
Product Launch
The electric supercar launch is considered a major catalyst for the company, with significant anticipation around its introduction.
Negative Factors
BEV Transition Challenges
Challenges in executing its BEV transition strategy could present significant risks to Ferrari's earnings.
Demand Risk
A major slowdown in vehicle demand poses a downside earnings risk for Ferrari.
Ferrari (RACE) vs. S&P 500 (SPY)
Market Cap
$99.69B
Dividend Yield0.67%
Average Volume (3M)427.87K
Price to Earnings (P/E)48.4
Beta (1Y)0.81
Revenue Growth12.37%
EPS Growth22.03%
CountryIT
Employees5,435
SectorConsumer Cyclical
Sector Strength58
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)2.30
Shares Outstanding193,923,500
10 Day Avg. Volume292,277
30 Day Avg. Volume427,873
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$460.46Price Target Upside9.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Ferrari Business Overview & Revenue Model
Company DescriptionFerrari 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 provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates; and Ferrari Land Portaventura, a theme park in Europe. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores. As of December 31, 2021, it had a total of 30 retail Ferrari stores, including 14 franchised stores and 16 owned stores. The company also sells its products through a network of 172 authorized dealers operating 191 points of sale worldwide, as well as through its website, store.ferrari.com. Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.
How the Company Makes MoneyFerrari makes money primarily through the sale of its luxury sports cars and supercars, which are known for their high-performance and exclusivity. The company's revenue model is centered around manufacturing and selling a limited number of vehicles each year to maintain the brand's exclusivity and high demand. Key revenue streams include direct sales to customers, as well as through a global network of authorized dealers. Ferrari also generates income from its involvement in motorsport racing, particularly Formula 1, which enhances its brand prestige and attracts sponsorships. Additionally, Ferrari earns revenue from after-sales services, including maintenance and parts, and through licensing its brand for a range of merchandise such as clothing, accessories, and scale models. Significant partnerships with luxury brands and collaborations also contribute to its earnings.
Ferrari Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.68B | 5.97B | 5.10B | 4.27B | 3.46B | Gross Profit |
| 3.35B | 2.97B | 2.45B | 2.19B | 1.77B | EBIT |
| 1.89B | 1.62B | 1.23B | 1.08B | 717.25M | EBITDA |
| 2.60B | 2.29B | 1.77B | 1.53B | 1.14B | Net Income Common Stockholders |
| 1.52B | 1.25B | 932.61M | 830.77M | 607.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.75B | 1.13B | 1.40B | 1.35B | 1.36B | Total Assets |
| 9.50B | 8.05B | 7.77B | 6.86B | 6.26B | Total Debt |
| 3.35B | 2.48B | 2.81B | 2.63B | 2.72B | Net Debt |
| 1.61B | 1.36B | 1.42B | 1.29B | 1.36B | Total Liabilities |
| 5.95B | 4.98B | 5.16B | 4.65B | 4.47B | Stockholders Equity |
| 3.53B | 3.06B | 2.59B | 2.21B | 1.79B |
| Cash Flow | Free Cash Flow | |||
| 937.50M | 847.73M | 598.72M | 545.58M | 129.22M | Operating Cash Flow |
| 1.93B | 1.72B | 1.40B | 1.28B | 838.21M | Investing Cash Flow |
| -987.11M | -866.45M | -805.41M | -732.74M | -708.03M | Financing Cash Flow |
| -324.76M | -1.11B | -553.56M | -579.67M | 339.68M |
Ferrari Technical Analysis
Positive
418.90
Price Trends
404.60
Positive
415.55
Positive
415.31
Positive
Market Momentum
4.50
Negative
62.96
Neutral
87.61
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 418.9 is above the 20-day moving average (MA) of 389.98, above the 50-day MA of 404.60, and above the 200-day MA of 415.31, indicating a bullish trend. The MACD of 4.50 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 87.61 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
IT:RACE
Ferrari
418.90
43.43
11.57%
STLA
Stellantis
9.44
-10.26
-52.08%
DE:2PI
Pirelli & C. SpA
5.50
-0.28
-4.84%
DE:6QN
Italian Sea Group S.p.A.
5.90
-2.64
-30.91%
DE:6SZA
Sanlorenzo S.p.A.
28.30
-10.90
-27.81%
HK:9638
Ferretti S.p.A.
20.25
-3.78
-15.73%
Ferrari Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 2.10%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Ferrari's Q1 2025 results highlight strong financial performance, successful new product launches, and significant achievements in racing and lifestyle initiatives. However, challenges such as U.S. tariff impacts and performance in China present potential risks. Despite these, the overall outlook remains positive with confidence in the brand's desirability and strategic execution.Q1-2025 Updates
Positive Updates
Double-Digit Revenue Growth
Total revenues reached approximately €1.8 billion, confirming the strategy of prioritizing quality of revenues over quantity.
Strong Profitability and Cash Flow
EBITDA was close to €700 million, and industrial free cash flow generation exceeded €600 million in Q1.
Positive Reception of New Models
The newly unveiled 296 GTB and 296 GTS special versions were enthusiastically received, with hybrid engines delivering a total of 880 horsepower.
Successful Racing Achievements
Historic 1-2-3 in Qatar at the opening round of the 2025 FIA World Endurance Championship and a victory at the six hours of Imola.
Lifestyle and Brand Engagement
Significant progress in the lifestyle strategy with new exclusive Ferrari collectibles and strong community engagement through events like the Enzo Ferrari Memorial Half Marathon.
LEED Platinum Certification
The e-building, inaugurated last year, received the prestigious LEED Platinum Certificate for sustainability.
Negative Updates
Impact of U.S. Tariffs
Higher tariffs on EU cars imported into the U.S. posed a 50 basis point risk to EBITDA and EBIT margins.
Challenges in Mainland China
Deliveries in Mainland China, Hong Kong, and Taiwan reduced their share to 7%, partly due to high taxes on 12-cylinder models.
Formula 1 Performance Challenges
The beginning of the Formula 1 season has been challenging, although the team remains focused on improving performance.
Company Guidance
During the Ferrari 2025 Q1 results conference call, the company reported strong financial performance with double-digit growth across key metrics. Total revenues reached approximately €1.8 billion, with EBITDA close to €700 million and industrial free cash flow generation exceeding €600 million. The net profit amounted to €412 million, corresponding to a diluted EPS of €2.3, marking a 17.9% increase compared to the previous year. The order book for current models covered the World 2026, led by the 12-cylinder coupes and spiders. The company also highlighted the positive reception of its new hybrid models, the 296 GTB and 296 GTS, as well as advancements in lifestyle offerings and sustainability achievements. Despite macroeconomic uncertainties, Ferrari maintained its guidance for 2025, noting a 50 basis points risk to EBITDA and EBIT margins due to new U.S. tariffs, while remaining confident in its business model and product mix.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.