Ferrari N.V.
Ferrari N.V. Fundamental Analysis
Ferrari N.V. (RACE) shows moderate financial fundamentals with a PE ratio of 30.73, profit margin of 22.19%, and ROE of 41.86%. The company generates $7.2B in annual revenue with moderate year-over-year growth of 7.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.8/100 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's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRACE demonstrates superior asset utilization.
Valuation Score
WeakRACE trades at a premium to fair value.
Growth Score
ModerateRACE shows steady but slowing expansion.
Financial Health Score
ExcellentRACE maintains a strong and stable balance sheet.
Profitability Score
ExcellentRACE achieves industry-leading margins.
Key Financial Metrics
Is RACE Expensive or Cheap?
P/E Ratio
RACE trades at 30.73 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RACE's PEG of 14.99 indicates potential overvaluation.
Price to Book
The market values Ferrari N.V. at 12.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.09 times EBITDA. This signals the market has high growth expectations.
How Well Does RACE Make Money?
Net Profit Margin
For every $100 in sales, Ferrari N.V. keeps $22.19 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 $41.86 in profit for every $100 of shareholder equity.
ROA
Ferrari N.V. generates $15.57 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 $4.19B, reflecting robust business health.
Free Cash Flow
Ferrari N.V. generates strong free cash flow of $2.76B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.63 in free cash annually.
FCF Yield
RACE converts 5.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
14.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How RACE Stacks Against Its Sector Peers
| Metric | RACE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.73 | 23.70 | Worse (Expensive) |
| ROE | 41.86% | 1185.00% | Weak |
| Net Margin | 22.19% | 2505.00% | Weak |
| Debt/Equity | 0.72 | 0.77 | Neutral |
| Current Ratio | 2.41 | 2.86 | Strong Liquidity |
| ROA | 15.57% | -8133.00% (disorted) | Strong |
RACE outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
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
114.29%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
173.11%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
190.79%
Industry Style: Cyclical, Growth, Discretionary
High Growth