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Ferrari NV (IT:RACE)
:RACE
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Ferrari
(NYSE:RACE)
Rating:72Outperform
Price Target:
€450.00
▲(11.08% Upside)
Positive Factors
Earnings
Revenue of €1,791mn beat vs. consensus of €1,766mn and Morgan Stanley estimate of €1,690mn.
Financial Performance
Ferrari's strong brand equity and exclusivity result in the highest margins seen in the industry due to its premium pricing.
Negative Factors
Market Demand
Major slowdown in demand for its vehicles and headwinds in the execution of its BEV transition strategy could pose a downside earnings risk to the company.
Tariffs
Analyst anticipates ongoing volatility as a result of tariff impacts, suggesting investors look for better entry points.
Ferrari (RACE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€94.66B
Dividend Yield0.75%
Average Volume (3M)353.55K
Price to Earnings (P/E)44.9
Beta (1Y)0.90
Revenue Growth9.35%
EPS Growth15.99%
CountryIT
Employees5,465
SectorConsumer Cyclical
Sector Strength80
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)2.38
Shares Outstanding193,923,500
10 Day Avg. Volume255,802
30 Day Avg. Volume353,546
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€442.89Price Target Upside9.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Ferrari Business Overview & Revenue Model
Company DescriptionFerrari N.V. (RACE) is an Italian luxury sports car manufacturer renowned for its high-performance vehicles, innovation in automotive engineering, and rich motorsport heritage. Established in 1939, Ferrari operates primarily in the automotive sector, offering a range of premium sports cars and limited-edition models that emphasize performance, design, and exclusivity. The company also engages in the development of branded merchandise, theme parks, and other ancillary services, enhancing its iconic brand presence globally.
How the Company Makes MoneyFerrari generates revenue through several key streams: the sale of high-performance automobiles, which includes a mix of standard production models and limited-edition supercars that command premium prices due to their exclusivity and brand prestige. Additionally, the company earns income from aftersales services, including maintenance, parts, and repairs for its vehicles. Another significant revenue source is the licensing of the Ferrari brand for merchandise and accessories, capitalizing on its status as a luxury icon. Furthermore, Ferrari has established strategic partnerships and collaborations, particularly in motorsport, which enhance its brand visibility and drive sales. The company also benefits from its involvement in Formula 1 racing, where it not only showcases its engineering prowess but also boosts brand recognition and customer loyalty.
Ferrari Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, successful product launches, and robust client engagement. However, challenges such as tariff uncertainties and residual value pressures in key markets were also noted. Overall, the company appears confident in navigating these issues.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Ferrari reported Q2 2025 revenues of approximately EUR 1.8 billion, marking a 4.4% growth year-over-year with flat deliveries. Strong profitability with EBITDA exceeding EUR 700 million and industrial free cash flow at EUR 230 million.
Product Development and Launches
Ferrari is on track with its product development, notably with the Ferrari Elettrica and the launch of the Ferrari Amalfi, the 11th model of the 15 model roadmap. The 296 Speciale family has almost reached full coverage of its life cycle.
Order Book and Client Engagement
Ferrari continues to hold a strong order book extending into 2027. New model launches have garnered significant interest, especially the Ferrari Amalfi and 296 Speciale, with the latter seeing high demand globally.
Racing Achievements
Ferrari secured a third consecutive win at the 24 Hours of Le Mans, allowing them to keep the winner's trophy permanently. Encouraging progress in Formula 1 with recent races showing consistent podium finishes.
Capital Expenditure and Infrastructure Development
The production ramp-up of the e-building and new paint shop is proceeding as planned. Construction of a new track dedicated to sports car testing has begun.
Negative Updates
Tariff Challenges in the U.S.
The U.S. tariff situation remains uncertain, with the implementation of the lower tariff yet to take effect. This has potential cost implications for Q3 and Q4.
Pressure on Residual Values in Key Markets
Residual value pressures noted in the U.K. and some models in the U.S., leading to commercial actions to address these issues.
Flat Deliveries
Despite revenue growth, overall deliveries remained flat year-over-year, indicating potential challenges in increasing shipment volumes.
Company Guidance
During Ferrari's Q2 2025 earnings call, the company provided guidance underscoring its strong financial performance and strategic advancements. Total revenues for the quarter reached approximately EUR 1.8 billion, marking a 4.4% increase year-over-year, with flat deliveries. The company's EBITDA exceeded EUR 700 million, demonstrating robust profitability, while industrial cash flow stood at EUR 230 million. Ferrari's product development remains on track, highlighted by the anticipated launch of the Ferrari Elettrica and the introduction of the Ferrari Amalfi, a model designed to enhance offerings in markets like China. The order book is strong, reaching into 2027, and the new car launches are expected to nurture existing clients and attract new ones. Despite macroeconomic challenges, Ferrari maintains its guidance for 2025 with increased confidence, having removed the previous 50 basis point risk on percentage margins, due to improved industrial cost expectations and a recent agreement on U.S. tariffs. The company's commitment to client centricity, product excellence, and innovation is supported by ongoing investments and infrastructure enhancements, including the development of a new testing track and a paint shop.Ferrari Financial Statement Overview
Summary
Ferrari demonstrates strong financial performance with robust profitability, efficient operations, and solid cash flow generation. The company shows consistent revenue and profit growth, supported by effective cost management and operational efficiency. While leverage is present, it remains manageable, and the company maintains a strong equity base.Income Statement
Ferrari's income statement shows strong profitability with a consistent increase in revenue and margins over the years. The TTM data indicates a gross profit margin of 51.2% and a net profit margin of 22.9%, reflecting efficient cost management and strong pricing power. Revenue growth is robust at 9.7% TTM, indicating strong market demand. The EBIT and EBITDA margins are also healthy, suggesting operational efficiency. Overall, Ferrari demonstrates strong financial performance with a positive growth trajectory.85
Very Positive
Balance Sheet
Ferrari's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.89 TTM, indicating manageable leverage. The return on equity is impressive at 45.6% TTM, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 36.7%, suggesting a solid equity base. While the debt levels have fluctuated, the company maintains a strong equity position, supporting its financial stability.78
Positive
Cash Flow
Ferrari's cash flow statement highlights strong cash generation capabilities. The free cash flow growth rate is 7.9% TTM, indicating effective cash management and reinvestment strategies. The operating cash flow to net income ratio is approximately 1.00 TTM, suggesting that net income is well-supported by cash flows. The free cash flow to net income ratio of 0.63 TTM further underscores the company's ability to convert profits into cash, supporting future growth and shareholder returns.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.96B | 6.68B | 5.97B | 5.10B | 4.27B | 3.46B |
| Gross Profit | 3.56B | 3.35B | 2.97B | 2.45B | 2.19B | 1.77B |
| EBITDA | 2.71B | 2.59B | 2.29B | 1.77B | 1.53B | 1.14B |
| Net Income | 1.59B | 1.52B | 1.25B | 932.61M | 830.77M | 607.82M |
Balance Sheet | ||||||
| Total Assets | 9.65B | 9.50B | 8.05B | 7.77B | 6.86B | 6.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.66B | 1.75B | 1.13B | 1.40B | 1.35B | 1.36B |
| Total Debt | 3.16B | 3.35B | 2.48B | 2.81B | 2.63B | 2.72B |
| Total Liabilities | 6.10B | 5.95B | 4.98B | 5.16B | 4.65B | 4.47B |
| Stockholders Equity | 3.54B | 3.53B | 3.06B | 2.59B | 2.21B | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | 1.48B | 937.50M | 847.73M | 598.72M | 545.58M | 129.22M |
| Operating Cash Flow | 2.35B | 1.93B | 1.72B | 1.40B | 1.28B | 838.21M |
| Investing Cash Flow | -987.67M | -987.11M | -866.45M | -805.41M | -732.74M | -708.03M |
| Financing Cash Flow | -1.17B | -324.76M | -1.11B | -553.56M | -579.67M | 339.68M |
Ferrari Technical Analysis
Neutral
405.10
Price Trends
409.11
Negative
410.08
Negative
415.23
Negative
Market Momentum
-2.46
Negative
51.95
Neutral
80.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RACE, the sentiment is Neutral. The current price of 405.1 is above the 20-day moving average (MA) of 393.45, below the 50-day MA of 409.11, and below the 200-day MA of 415.23, indicating a neutral trend. The MACD of -2.46 indicates Negative momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:RACE.
Ferrari Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €94.66B | 44.93 | 46.42% | 0.75% | 9.35% | 15.99% | |
61 Neutral | $17.75B | 12.56 | -5.49% | 3.02% | 1.43% | -14.12% | |
| ― | $36.67B | 4.83 | -3.01% | 8.12% | ― | ― | |
| ― | €4.80B | 12.33 | 12.04% | 3.20% | ― | ― | |
| ― | €13.01B | 21.17 | 18.89% | ― | ― | ― | |
| ― | €72.52M | 311.11 | -25.75% | ― | ― | ― | |
| ― | €5.93B | 11.85 | 8.98% | ― | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
IT:RACE
Ferrari
405.10
-36.85
-8.34%
STLA
Stellantis
9.52
-5.86
-38.10%
GB:0RPV
Brembo SPA
9.35
-0.70
-6.97%
GB:0QII
Moncler S.p.A.
49.19
-5.22
-9.59%
GB:0FNI
Pininfarina SPA
0.84
0.00
0.00%
DE:2PI
Pirelli & C. SpA
5.84
0.61
11.66%
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.