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Ferrari NV (IT:RACE)
:RACE

Ferrari (RACE) AI Stock Analysis

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IT

Ferrari

(NYSE:RACE)

Rating:83Outperform
Price Target:
€521.00
▲(22.67%Upside)
Ferrari's overall stock score is strong, driven by its outstanding financial performance and positive earnings call outlook. The high valuation and potential geopolitical risks, such as U.S. tariffs, slightly temper the score. Despite these concerns, the company's robust growth, strategic execution, and brand strength position it well in the luxury auto market.
Positive Factors
Brand Equity and Pricing
Ferrari benefits from strong brand equity and exclusivity, leading to the highest margins in the industry.
Earnings and 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 Launches
The electric supercar launch in October 2025 is considered a major catalyst for the company.
Negative Factors
Demand and BEV Strategy
A major slowdown in demand for its vehicles and challenges in executing its BEV strategy could pose a downside earnings risk.
Tariffs and Margins
There is a margin risk from US tariffs, which may affect EBIT/EBITDA margins, although it is being offset by price hikes.

Ferrari (RACE) vs. iShares MSCI Italy ETF (EWI)

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 Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 3.51%|
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.

Ferrari Financial Statement Overview

Summary
Ferrari's financial performance is robust, with exceptional profitability and growth metrics. The income statement showcases impressive margins and revenue growth, while the balance sheet indicates stability despite a slight increase in debt. Cash flow metrics are strong, reflecting efficient cash management and support for future investments.
Income Statement
95
Very Positive
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
88
Very Positive
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
92
Very Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.88B6.68B5.97B5.10B4.27B3.46B
Gross Profit
3.48B3.35B2.97B2.45B2.19B1.77B
EBIT
2.00B1.89B1.62B1.23B1.08B717.25M
EBITDA
2.58B2.59B2.29B1.77B1.53B1.14B
Net Income Common Stockholders
1.58B1.52B1.25B932.61M830.77M607.82M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.92B1.75B1.13B1.40B1.35B1.36B
Total Assets
9.91B9.50B8.05B7.77B6.86B6.26B
Total Debt
3.33B3.35B2.48B2.81B2.63B2.72B
Net Debt
1.42B1.61B1.36B1.42B1.29B1.36B
Total Liabilities
6.34B5.95B4.98B5.16B4.65B4.47B
Stockholders Equity
3.57B3.53B3.06B2.59B2.21B1.79B
Cash FlowFree Cash Flow
1.37B937.50M847.73M598.72M545.58M129.22M
Operating Cash Flow
2.27B1.93B1.72B1.40B1.28B838.21M
Investing Cash Flow
-1.02B-987.11M-866.45M-805.41M-732.74M-708.03M
Financing Cash Flow
-703.44M-324.76M-1.11B-553.56M-579.67M339.68M

Ferrari Technical Analysis

Technical Analysis Sentiment
Positive
Last Price424.70
Price Trends
50DMA
408.12
Positive
100DMA
419.35
Positive
200DMA
420.07
Positive
Market Momentum
MACD
1.63
Positive
RSI
52.99
Neutral
STOCH
51.20
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 424.7 is below the 20-day moving average (MA) of 430.63, above the 50-day MA of 408.12, and above the 200-day MA of 420.07, indicating a neutral trend. The MACD of 1.63 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 51.20 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$99.49B47.8345.95%0.66%12.37%22.03%
62
Neutral
$6.94B11.292.95%3.87%2.70%-24.49%
$36.68B4.826.77%7.60%
DE2PI
€6.19B12.388.52%3.24%
DE6QN
€304.22M8.9124.55%4.30%
€1.05B9.9125.15%3.42%
HK$8.45B11.3110.27%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:RACE
Ferrari
424.70
44.86
11.81%
STLA
Stellantis
9.87
-10.20
-50.82%
DE:2PI
Pirelli & C. SpA
6.10
0.27
4.63%
DE:6QN
Italian Sea Group S.p.A.
5.70
-3.98
-41.12%
DE:6SZA
Sanlorenzo S.p.A.
29.55
-10.91
-26.96%
HK:9638
Ferretti S.p.A.
24.80
-0.15
-0.60%
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.