Ferrari (RACE) AI Stock Analysis

• Market Cap: $96.37B
• Dividend Yield: 0.64%
• Average Volume (3M): 278.74K
• Price to Earnings (P/E): 45.2
• Beta (1Y): 0.85
• Revenue Growth: 12.37%
• EPS Growth: 22.03%
• Country: IT
• Employees: 5,465
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Auto - Manufacturers
• EPS (TTM): 2.30
• Shares Outstanding: 193,923,500
• 10 Day Avg. Volume: 299,746
• 30 Day Avg. Volume: 278,743
• PEG Ratio: 2.94
• Price to Book (P/B): 14.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.14
• 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: $452.64
• Price Target Upside: 12.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 76 Outperform
• Price Target: €467.00 ▲(15.62%Upside)

Ferrari's overall stock score reflects a strong financial performance, underscored by impressive profitability and cash flow management. The earnings call supports this with robust growth and positive guidance. However, technical analysis presents a cautious outlook, and the high valuation suggests potential risks if growth expectations are not met. Despite these challenges, Ferrari's brand strength and strategic focus on quality and innovation bolster its investment appeal.

Positive Factors

Brand Equity

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

Product Launch

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

Negative Factors

Demand Slowdown

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.

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 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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.88B	6.68B	5.97B	5.10B	4.27B	3.46B
Gross Profit	3.48B	3.35B	2.97B	2.45B	2.19B	1.77B
EBITDA	2.58B	2.59B	2.29B	1.77B	1.53B	1.14B
Net Income	1.58B	1.52B	1.25B	932.61M	830.77M	607.82M
Balance Sheet
Total Assets	9.91B	9.50B	8.05B	7.77B	6.86B	6.26B
Cash, Cash Equivalents and Short-Term Investments	1.92B	1.75B	1.13B	1.40B	1.35B	1.36B
Total Debt	3.33B	3.35B	2.48B	2.81B	2.63B	2.72B
Total Liabilities	6.34B	5.95B	4.98B	5.16B	4.65B	4.47B
Stockholders Equity	3.57B	3.53B	3.06B	2.59B	2.21B	1.79B
Cash Flow
Free Cash Flow	1.37B	937.50M	847.73M	598.72M	545.58M	129.22M
Operating Cash Flow	2.27B	1.93B	1.72B	1.40B	1.28B	838.21M
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	-579.67M	339.68M

Ferrari Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 403.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 403.9 is below the 20-day moving average (MA) of 411.04, below the 50-day MA of 415.23, and below the 200-day MA of 418.28, indicating a bearish trend. The MACD of -5.36 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 40.58 is Neutral, 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
RACE	76 Outperform	$96.37B	45.21	45.95%	0.64%	12.37%	22.03%
Sector *	62 Neutral	$16.34B	10.69	-6.34%	3.17%	1.66%	-24.46%
STLA		$37.30B	4.91	6.77%	7.83%	―	―
2PI		€5.79B	11.74	8.52%	4.32%	―	―
6QN		€290.44M	8.23	24.55%	3.88%	―	―
6SZA		€1.04B	9.79	25.15%	2.93%	―	―
9638		HK$8.33B	10.95	10.27%	3.75%	―	―