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Ferrari
(NYSE:RACE)
Select Model
Select Model
Rating:72Outperform
Price Target:
€377.00
▲(17.41% Upside)
Action:Reiterated
Date:06/04/26
The score is primarily supported by Ferrari’s standout financial performance—best-in-class margins, strong profitability, and improving leverage—tempered by uneven cash-flow conversion. Technicals are mixed (near-term strength but still below the 200-day trend), and valuation remains premium (P/E ~33.7) with only a modest yield, limiting upside in the score.
Positive Factors
Exceptional Profitability
Ferrari's persistently high gross and net margins reflect durable pricing power from brand exclusivity and extensive customization. These margins enable strong internal cash generation and returns on capital, insulating profitability across normal auto cycles and supporting reinvestment and shareholder returns over months.
Negative Factors
Variable Cash Conversion
Free cash flow conversion has fallen versus the prior year, indicating uneven translation of strong earnings into free cash. That variability can constrain predictable funding for dividends, buybacks or capex, and requires monitoring of working capital and reinvestment needs over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Profitability
Ferrari's persistently high gross and net margins reflect durable pricing power from brand exclusivity and extensive customization. These margins enable strong internal cash generation and returns on capital, insulating profitability across normal auto cycles and supporting reinvestment and shareholder returns over months.
Read all positive factors
Ferrari (RACE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€76.72B
Dividend Yield0.93%
Average Volume (3M)554.61K
Price to Earnings (P/E)36.6
Beta (1Y)0.94
Revenue Growth4.66%
EPS Growth1.94%
CountryIT
Employees5,718
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)9.00
Shares Outstanding193,923,500
10 Day Avg. Volume539,423
30 Day Avg. Volume554,608
Financial Highlights & Ratios
PEG Ratio5.89
Price to Book (P/B)14.53
Price to Sales (P/S)7.94
P/FCF Ratio30.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€392.61Price Target Upside22.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)9.66
Revenue Forecast (FY)€7.56B
Ferrari Business Overview & Revenue Model
Company Description
Ferrari N.V., established in Maranello, Italy, in 1947, operates as a prestigious automotive company focused on the design, engineering, manufacturing, and global sales of high-performance luxury sports vehicles. Its diverse product range features...
How the Company Makes Money
Ferrari primarily makes money by selling luxury sports cars and related options to customers and dealers, with revenue driven by vehicle deliveries, product mix, customization, and pricing power associated with brand exclusivity. A significant por...
Ferrari Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call highlighted strong financial and operational performance in FY2025 — record revenue (>EUR 7.1bn), robust margins (EBIT margin 29.5%), and exceptional industrial free cash flow (+~50% to >EUR 1.5bn), together with successful product launches and racing achievements. Key near-term headwinds include an acknowledged EUR ~200m FX drag for 2026, tariff impacts, higher SG&A and R&D/F1 costs and model-changeover timing that creates delivery phasing risk. On balance, the company demonstrated execution strength, ample cash generation and a clear strategic roadmap, while flagging manageable but meaningful macro and timing challenges for 2026.Positive Updates
Record Revenue
Net revenues exceeded EUR 7.1 billion in FY2025, representing year-over-year growth of ~8% at constant currency (7% including FX headwinds).
Negative Updates
Significant FX Headwind for 2026
Management expects an approximately EUR 200 million negative impact to 2026 results from foreign exchange (assumption: USD ~120/EUR and current JPY rates) after considering hedges.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue
Net revenues exceeded EUR 7.1 billion in FY2025, representing year-over-year growth of ~8% at constant currency (7% including FX headwinds).
Read all positive updates
Company Guidance
Ferrari guided 2026 as “another year of growth,” driven by a stronger product mix (with the clearest improvement in H2) and model ramp‑ups, while expecting personalizations to remain around 20% of cars & spare‑parts revenues; higher SG&A (brand, retail and digital), higher D&A, roughly stable R&D on the P&L (with possible F1 volatility) and CapEx slightly above 2025. Management assumes a USD ≈120/EUR rate and flagged a net FX headwind of about €200m (including hedges), an effective tax rate of ≈23% (Patent Box benefit only), and expects industrial free cash flow to stay robust after 2025’s >€1.5bn (≈+50% YoY) generation; 2025 base metrics were revenues >€7.1bn, EBIT >€2.1bn (EBIT margin 29.5%, EBITDA margin 38.8%), shipments kept flat YoY, order book visibility into end‑2027, and the continuation of new‑model launches (7 in production) including F80 ramp and Ferrari Luce full introduction (deliveries starting Q4).Ferrari Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
77
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.20B | 7.15B | 6.68B | 5.97B | 5.10B | 4.27B |
| Gross Profit | 3.72B | 3.69B | 3.35B | 2.97B | 2.45B | 2.19B |
| EBITDA | 2.80B | 2.77B | 2.59B | 2.29B | 1.77B | 1.53B |
| Net Income | 1.60B | 1.60B | 1.52B | 1.25B | 932.61M | 830.77M |
Balance Sheet | ||||||
| Total Assets | 10.24B | 9.86B | 9.50B | 8.05B | 7.77B | 6.86B |
| Cash, Cash Equivalents and Short-Term Investments | 1.89B | 1.55B | 1.75B | 1.13B | 1.40B | 1.35B |
| Total Debt | 2.93B | 2.88B | 3.35B | 2.48B | 2.81B | 2.63B |
| Total Liabilities | 6.18B | 5.95B | 5.95B | 4.98B | 5.16B | 4.65B |
| Stockholders Equity | 4.05B | 3.91B | 3.53B | 3.06B | 2.59B | 2.21B |
Cash Flow | ||||||
| Free Cash Flow | 1.50B | 1.86B | 937.50M | 847.73M | 598.72M | 545.58M |
| Operating Cash Flow | 2.37B | 2.35B | 1.93B | 1.72B | 1.40B | 1.28B |
| Investing Cash Flow | -972.76M | -944.14M | -987.11M | -866.45M | -805.41M | -732.74M |
| Financing Cash Flow | -1.44B | -1.67B | -324.76M | -1.11B | -553.56M | -579.67M |
Ferrari Technical Analysis
Positive
321.10
Price Trends
307.13
Positive
300.93
Positive
314.21
Positive
Market Momentum
6.35
Positive
57.55
Neutral
18.56
Positive
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 321.1 is below the 20-day moving average (MA) of 323.02, above the 50-day MA of 307.13, and above the 200-day MA of 314.21, indicating a bullish trend. The MACD of 6.35 indicates Positive momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 18.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:RACE.
Ferrari Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | €13.64B | 22.25 | 18.89% | 2.32% | 0.75% | -2.37% | |
72 Outperform | €76.72B | 36.57 | 41.89% | 0.93% | 4.66% | 1.94% | |
66 Neutral | €5.19B | 15.10 | ― | 3.23% | ― | ― | |
66 Neutral | €7.39B | 13.39 | 8.81% | 4.33% | -1.20% | 3.37% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | €18.82B | ― | 26.27% | 7.23% | -2.15% | -525.09% | |
46 Neutral | €63.24M | -20.45 | -26.84% | ― | 36.39% | 54.29% |
* Consumer Cyclical Sector Average
IT:RACE
Ferrari
329.15
-94.53
-22.31%
IT:STLAM
Stellantis
5.17
-2.83
-35.42%
IT:BRE
Brembo SPA
10.27
2.39
30.31%
IT:MONC
Moncler S.p.A.
50.72
1.70
3.47%
IT:PINF
Pininfarina SPA
0.81
0.02
2.27%
IT:PIRC
Pirelli & C. SpA
6.83
1.07
18.49%
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.