Ferrari (RACE) AI Stock Analysis

• Market Cap: $99.20B
• Dividend Yield: 0.71%
• Average Volume (3M): 238.91K
• Price to Earnings (P/E): 47.6
• Beta (1Y): 0.85
• Revenue Growth: 12.37%
• EPS Growth: 22.03%
• Country: IT
• Employees: 5,465
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Auto - Manufacturers
• EPS (TTM): 2.30
• Shares Outstanding: 193,923,500
• 10 Day Avg. Volume: 178,765
• 30 Day Avg. Volume: 238,912
• PEG Ratio: 11.45
• Price to Book (P/B): 21.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $468.13
• Price Target Upside: 9.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: €472.00 ▲(10.15%Upside)

Ferrari's strong financial performance and positive earnings call are the most significant factors driving the stock score. Impressive margins and growth, coupled with successful product launches, bolster the outlook. However, high valuation and mixed technical indicators temper the overall score.

Positive Factors

Brand Strength

Ferrari's strong brand equity and exclusivity contribute to the highest margins seen in the industry due to its premium pricing.

Financial Performance

The 4Q24 results exceeded expectations with a 15% beat on resilient pricing and margins.

Future Product Launch

The electric supercar launch in October 2025 is considered a major catalyst for the company.

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.

Tariff Impact

Analyst anticipates ongoing volatility as a result of tariff impacts, suggesting investors look for better entry points.

Vehicle Demand

Demand for luxury EV’s is dropping fast, influencing RACE's strategy.

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 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 Money

Ferrari 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 Financial Statement Overview

Summary

Ferrari's financial statements reflect strong growth momentum with impressive margins and efficient financial management. The income statement shows high profitability with a net profit margin of 22.99% and revenue growth of 11.51%. The balance sheet is stable with a debt-to-equity ratio of 0.93, and cash flow is robust with a significant increase in free cash flow, highlighting strong operational performance.

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.

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.

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.

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
EBITDA	2.59B	2.29B	1.77B	1.53B	1.14B
Net Income	1.52B	1.25B	932.61M	830.77M	607.82M
Balance Sheet
Total Assets	9.50B	8.05B	7.77B	6.86B	6.26B
Cash, Cash Equivalents and Short-Term Investments	1.75B	1.13B	1.40B	1.35B	1.36B
Total Debt	3.35B	2.48B	2.81B	2.63B	2.72B
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

• Technical Analysis Sentiment: Positive
• Last Price: 428.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 428.5 is above the 20-day moving average (MA) of 413.03, above the 50-day MA of 420.60, and above the 200-day MA of 418.15, indicating a bullish trend. The MACD of 2.55 indicates Negative momentum. The RSI at 60.49 is Neutral, neither overbought nor oversold. The STOCH value of 73.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:RACE.

Ferrari Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RACE	77 Outperform	$99.20B	47.56	45.95%	0.71%	12.37%	22.03%
Sector *	62 Neutral	$16.79B	10.79	-7.01%	3.04%	1.73%	-25.15%
STLA	―	$36.70B	4.92	6.77%	8.13%	―	―
2PI	―	€5.79B	11.74	8.52%	4.32%	―	―
6QN	―	€302.10M	9.60	24.55%	4.30%	―	―
6SZA	―	€1.03B	9.64	25.15%	3.45%	―	―
9638	―	HK$8.48B	11.54	10.27%	3.64%	―	―