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Ferrari NV (IT:RACE)
:RACE
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Ferrari
(NYSE:RACE)
Rating:75Outperform
Price Target:
€433.00
▲(11.92% Upside)
Positive Factors
Financial Performance
Ferrari's unmatched pricing power and visibility, with an order book covered for the next 2+ years, provides it with almost perfect control over its earnings.
Product Launch
The electric supercar launch in October 2025 is considered a major catalyst for the company.
Stock Price Potential
The analyst's $575 share price target still provides approximately 15% upside to the stock, indicating potential growth for investors.
Negative Factors
Market Demand
A major slowdown in demand for its vehicles and challenges in executing its BEV strategy could pose a downside earnings risk.
Tariffs Impact
There is a margin risk from US tariffs, which may affect EBIT/EBITDA margins, although it is being offset by price hikes.
Vehicle Demand
Demand for luxury EV’s is dropping fast, influencing RACE's strategy.
Ferrari (RACE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€91.47B
Dividend Yield0.79%
Average Volume (3M)320.76K
Price to Earnings (P/E)43.4
Beta (1Y)0.91
Revenue Growth9.35%
EPS Growth15.99%
CountryIT
Employees5,465
SectorConsumer Cyclical
Sector Strength74
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)2.38
Shares Outstanding193,923,500
10 Day Avg. Volume526,001
30 Day Avg. Volume320,759
Financial Highlights & Ratios
PEG Ratio2.16
Price to Book (P/B)20.98
Price to Sales (P/S)11.10
P/FCF Ratio79.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€447.15Price Target Upside15.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
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 generates revenue primarily through the sale of high-performance sports cars, which are priced at a premium due to their exclusivity, advanced technology, and brand prestige. The company offers a range of models, including limited edition and custom-made vehicles, catering to affluent customers. In addition to car sales, Ferrari earns money from brand-related activities, such as licensing and merchandising, which capitalize on its strong brand identity. Motorsport activities, particularly its Formula 1 team, also contribute to brand visibility and indirectly support sales. Furthermore, Ferrari benefits from after-sales services, including maintenance and spare parts, enhancing customer loyalty and generating additional revenue. Strategic partnerships and sponsorships in motorsport and luxury sectors further bolster Ferrari's financial performance.
Ferrari Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -11.28%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
Ferrari's Q2 2025 earnings call highlighted strong financial performance, a robust order book, and successful product launches and racing achievements, despite facing geopolitical and economic challenges. The company is adapting to U.S. tariffs and managing model changeovers effectively.Q2-2025 Updates
Positive Updates
Record Revenue and Strong Financial Performance
Total revenues reached approximately EUR 1.8 billion, a 4.4% growth year-over-year with flat deliveries. Strong profitability with EBITDA in excess of EUR 700 million and industrial cash flow at EUR 230 million.
Strong Order Book and Product Development
Strong order book entering 2027, with the newly launched Ferrari Amalfi at the initial stage of order collection. The demand for the 296 Speciale family is significantly high, nearly reaching full coverage of the life cycle.
Investments and Infrastructure Progress
Continued investment in client centricity, product excellence, and technology advancement. Production ramp-up of the e-building is proceeding at pace, and construction of a new paint shop is underway.
Successful Product Launches and Events
Launch of the Ferrari Amalfi, 11th model of the 15 model road map. Over 1,500 guests attended the premieres of the new Ferrari Amalfi on the Amalfi Coast, achieving unprecedented client engagement and brand visibility.
Racing Achievements
Ferrari team secured the third consecutive win at the 24 Hours of Le Mans, and progress is being made in Formula 1 with recent races showing constant fights for podiums and wins.
Negative Updates
Geopolitical and Economic Challenges
Uncertain macroeconomic environment, ongoing geopolitical tensions, and market volatility require cautiousness in business operations.
Impact of U.S. Tariffs
The company had to adapt to U.S. tariffs, which impacted the cost structure, although recent agreements may ease future costs.
Model Changeover and Production Challenges
The quarter experienced a significant changeover of models and a gradual phaseout of the Daytona SP3, leading to challenges in maintaining product mix.
Company Guidance
During Ferrari's 2025 Q2 earnings call, the company provided guidance on several key metrics. Total revenues for the quarter reached approximately EUR 1.8 billion, marking a 4.4% year-over-year growth despite flat deliveries. The company's EBITDA exceeded EUR 700 million, demonstrating strong profitability. Industrial cash flow was reported at EUR 230 million. Ferrari's order book remains robust, extending into 2027, with significant demand for newly launched models such as the Ferrari Amalfi and the 296 Speciale. The company's production ramp-up for its e-building and new paint shop is progressing as planned. Additionally, Ferrari confirmed its 2025 guidance with greater confidence, removing a previously considered 50 basis point risk on percentage margins following a recent agreement on U.S. tariffs, while anticipating a softer product mix in the second half of the year.Ferrari Financial Statement Overview
Summary
Ferrari's financial statements show strong growth momentum, solid profitability, and effective financial management. The income statement highlights impressive margins and growth trends, while the balance sheet shows stability and manageable leverage. Robust cash flows support future investments and stability, positioning Ferrari well to capitalize on future opportunities.Income Statement
Ferrari's income statement shows impressive financial performance. The TTM (Trailing-Twelve-Months) gross profit margin stands at 50.52%, reflecting strong cost management and pricing power. The net profit margin is also robust at 22.99%, indicating high profitability. Revenue growth is commendable, with an 11.51% increase from 2023 to 2024, and further growth in TTM. Strong EBIT and EBITDA margins of 29.03% and 37.47%, respectively, showcase efficient operations and solid earnings potential.95
Very Positive
Balance Sheet
The balance sheet demonstrates stability with a debt-to-equity ratio of 0.93 in TTM, showing a balanced approach to leveraging. The return on equity is excellent at 44.34%, indicating effective use of shareholder funds to generate profits. The equity ratio of 36.00% in TTM suggests a solid financial base. However, the total debt has increased slightly, which requires monitoring to ensure it remains manageable.88
Very Positive
Cash Flow
Ferrari's cash flow statement is strong, with a significant increase in free cash flow, growing by 46.67% from 2023 to 2024, and continuing to improve in TTM. The operating cash flow to net income ratio is 1.43, highlighting efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.87 in TTM reflects healthy cash flow management, supporting ongoing investments and debt reduction.92
Very 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
Negative
386.90
Price Trends
416.27
Negative
410.97
Negative
418.32
Negative
Market Momentum
-6.65
Positive
33.93
Neutral
18.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RACE, the sentiment is Negative. The current price of 386.9 is below the 20-day moving average (MA) of 421.11, below the 50-day MA of 416.27, and below the 200-day MA of 418.32, indicating a bearish trend. The MACD of -6.65 indicates Positive momentum. The RSI at 33.93 is Neutral, neither overbought nor oversold. The STOCH value of 18.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:RACE.
Ferrari Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | €91.47B | 43.41 | 46.42% | 0.79% | 9.35% | 15.99% | |
63 Neutral | £1.76B | 11.18 | 4.65% | 3.23% | 0.46% | -42.18% | |
| ― | $33.13B | 4.83 | -3.01% | 8.04% | ― | ― | |
| ― | €5.78B | 11.54 | 8.98% | ― | ― | ― | |
| ― | €290.44M | 8.23 | 24.55% | ― | ― | ― | |
| ― | €1.07B | 9.92 | 25.15% | ― | ― | ― | |
| ― | HK$8.39B | 11.35 | 9.60% | 3.66% | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
IT:RACE
Ferrari
386.90
6.17
1.62%
STLA
Stellantis
8.82
-5.44
-38.15%
DE:2PI
Pirelli & C. SpA
5.73
0.72
14.37%
DE:6QN
Italian Sea Group S.p.A.
5.86
-2.54
-30.24%
DE:6SZA
Sanlorenzo S.p.A.
29.30
-4.63
-13.65%
HK:9638
Ferretti S.p.A.
24.85
2.54
11.39%
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.