Ferrari N.V.
Ferrari N.V. Fundamental Analysis
Ferrari N.V. (RACE.SW) shows strong financial fundamentals with a PE ratio of 17.95, profit margin of 22.90%, and ROE of 45.56%. The company generates $6.8B in annual revenue with strong year-over-year growth of 11.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RACE.SW's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRACE.SW demonstrates superior asset utilization.
Valuation Score
ExcellentRACE.SW trades at attractive valuation levels.
Growth Score
ExcellentRACE.SW delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRACE.SW maintains a strong and stable balance sheet.
Profitability Score
ExcellentRACE.SW achieves industry-leading margins.
Key Financial Metrics
Is RACE.SW Expensive or Cheap?
P/E Ratio
RACE.SW trades at 17.95 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RACE.SW's PEG of -22.36 indicates potential undervaluation.
Price to Book
The market values Ferrari N.V. at 8.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.04 times EBITDA. This signals the market has high growth expectations.
How Well Does RACE.SW Make Money?
Net Profit Margin
For every $100 in sales, Ferrari N.V. keeps $22.90 as profit after all expenses.
Operating Margin
Core operations generate 29.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.56 in profit for every $100 of shareholder equity.
ROA
Ferrari N.V. generates $17.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ferrari N.V. generates strong operating cash flow of $2.30B, reflecting robust business health.
Free Cash Flow
Ferrari N.V. generates strong free cash flow of $1.55B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.66 in free cash annually.
FCF Yield
RACE.SW converts 5.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-22.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How RACE.SW Stacks Against Its Sector Peers
| Metric | RACE.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.95 | 23.72 | Better (Cheaper) |
| ROE | 45.56% | 1091.00% | Weak |
| Net Margin | 22.90% | -629.00% (disorted) | Strong |
| Debt/Equity | 0.89 | 0.72 | Weak (High Leverage) |
| Current Ratio | 2.11 | 2.64 | Strong Liquidity |
| ROA | 17.17% | 1050.00% | Weak |
RACE.SW outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ferrari N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
84.19%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
127.26%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
53.28%
Industry Style: Cyclical, Growth, Discretionary
High Growth