Ferrari (RACE) AI Stock Analysis

• Market Cap: €70.95B
• Dividend Yield: 0.93%
• Average Volume (3M): 426.60K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.93
• Revenue Growth: 9.53%
• EPS Growth: 12.89%
• Country: IT
• Employees: 5,465
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 2.14
• Shares Outstanding: 193,923,500
• 10 Day Avg. Volume: 525,111
• 30 Day Avg. Volume: 426,601
• PEG Ratio: 2.16
• Price to Book (P/B): 20.98
• Price to Sales (P/S): 11.10
• P/FCF Ratio: 79.07
• 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: €385.87
• Price Target Upside: 28.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 9.57
• Revenue Forecast (FY): €7.52B

• Rating: 72 Outperform
• Price Target: €333.00 ▲(10.96% Upside)

Ferrari's strong financial performance and positive earnings call are the most significant factors contributing to its overall score. The company's robust profitability, effective capital management, and ambitious future guidance are key strengths. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which are risks that investors should consider.

Positive Factors

High Profitability and Margins

Sustained high gross and operating margins signal durable pricing power from Ferrari's luxury positioning and efficient operations. Strong margins support reinvestment, R&D for new models, and sustained cash flow generation even through cyclical downturns.

Strong Balance Sheet and ROE

Manageable leverage combined with very high ROE indicates efficient capital allocation and financial flexibility. This balance sheet strength enables continued strategic investments, shareholder returns, and resilience to macro shocks over the medium term.

Order Book and Customization Revenue

A multi-year order backlog plus high-margin personalization revenue provide predictable demand and pricing insulation. Limited-run launches and bespoke options deepen customer loyalty and sustain long-term premium margins and revenue visibility.

Negative Factors

Sharp Decline in Free Cash Flow Growth

A severe drop in FCF growth, if persistent, reduces the firm's ability to fund capex for electrification, pay dividends, or continue buybacks without raising leverage. Even with strong operating cash, FCF volatility hampers long-term capital planning and flexibility.

Exposure to Tariffs and FX Headwinds

Ongoing trade barriers and currency swings create structural margin pressure for a globally exported luxury automaker. Sustained tariffs or adverse FX trends can erode pricing power and force restructuring of supply chains or dealer economics over multiple quarters.

Volume Risk from Model Phaseouts

Model phaseouts reduce near-term shipments and factory utilization until new launches scale. Timing gaps between discontinued and replacement models can depress revenue and leverage fixed costs, pressuring margins and growth for several quarters.

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 through several key streams. The primary source is the sale of its high-performance sports cars, which command premium prices due to the brand's exclusivity and engineering excellence. In addition to vehicle sales, Ferrari earns significant income from its Formula One racing activities, including sponsorship and broadcasting rights, which contribute to the brand's visibility and reputation. The company also capitalizes on merchandise sales, offering branded apparel and accessories, and engages in licensing agreements that allow third parties to produce Ferrari-branded products. Furthermore, Ferrari emphasizes limited production runs and bespoke customization options, creating a sense of scarcity and exclusivity that drives demand and supports premium pricing strategies.

Ferrari Financial Statement Overview

Summary

Ferrari exhibits a strong financial profile with high profitability and effective capital management. The income statement highlights robust margins and consistent revenue growth, while the balance sheet shows a healthy leverage position and excellent return on equity. However, the significant drop in free cash flow growth is a potential risk that needs monitoring. Overall, Ferrari is well-positioned financially, but maintaining cash flow stability will be crucial for future resilience.

Income Statement

Ferrari's income statement shows strong profitability with a gross profit margin of 51.2% and a net profit margin of 22.9% for TTM (Trailing-Twelve-Months). The company has maintained consistent revenue growth, with a slight increase of 1.7% in the latest period. EBIT and EBITDA margins are robust at 29.5% and 38.9%, respectively, indicating efficient operations. Overall, Ferrari demonstrates solid financial performance with stable growth and high profitability.

Balance Sheet

Ferrari's balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.89, indicating manageable leverage. The return on equity is impressive at 45.6%, showcasing effective use of shareholder funds. The equity ratio stands at 39.8%, suggesting a strong equity base relative to total assets. While the company has reduced its debt levels, maintaining this trajectory will further strengthen its financial stability.

Cash Flow

The cash flow statement reveals a mixed picture. Operating cash flow is strong, with a coverage ratio of 1.00, indicating sufficient cash generation to cover net income. However, free cash flow growth has declined by 92.3% in the latest period, which could be a concern if it persists. The free cash flow to net income ratio is 63.2%, showing a decent conversion of earnings to cash. Overall, while operating cash flows are solid, the decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.08B	6.68B	5.97B	5.10B	4.27B	3.46B
Gross Profit	3.63B	3.35B	2.97B	2.45B	2.19B	1.77B
EBITDA	2.73B	2.59B	2.29B	1.77B	1.53B	1.14B
Net Income	1.60B	1.52B	1.25B	932.61M	830.77M	607.82M
Balance Sheet
Total Assets	9.48B	9.50B	8.05B	7.77B	6.86B	6.26B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.75B	1.13B	1.40B	1.35B	1.36B
Total Debt	2.87B	3.35B	2.48B	2.81B	2.63B	2.72B
Total Liabilities	5.70B	5.95B	4.98B	5.16B	4.65B	4.47B
Stockholders Equity	3.77B	3.53B	3.06B	2.59B	2.21B	1.79B
Cash Flow
Free Cash Flow	1.47B	937.50M	847.73M	598.72M	545.58M	129.22M
Operating Cash Flow	2.33B	1.93B	1.72B	1.40B	1.28B	838.21M
Investing Cash Flow	-969.09M	-987.11M	-866.45M	-805.41M	-732.74M	-708.03M
Financing Cash Flow	-1.46B	-324.76M	-1.11B	-553.56M	-579.67M	339.68M

Ferrari Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 300.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 300.1 is below the 20-day moving average (MA) of 316.33, below the 50-day MA of 331.04, and below the 200-day MA of 384.65, indicating a bearish trend. The MACD of -6.07 indicates Positive momentum. The RSI at 30.57 is Neutral, neither overbought nor oversold. The STOCH value of 8.01 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRE	79 Outperform	€4.90B	11.93	―	3.23%	-0.22%	-12.64%
MONC	74 Outperform	€13.81B	22.55	18.89%	2.32%	0.87%	-5.61%
RACE	72 Outperform	€70.95B	33.46	43.40%	0.93%	9.53%	12.89%
PIRC	66 Neutral	€6.34B	12.79	8.81%	4.33%	1.64%	14.73%
STLAM	63 Neutral	€31.43B	-10.11	-3.01%	7.23%	-17.07%	-118.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PINF	46 Neutral	€65.13M	-7.60	-26.58%	―	-9.84%	-4133.33%