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Ferrari NV RACE

Morningstar Rating
$435.94 −3.22 (0.73%)
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Company Report

Wide-Moat Ferrari Benefits From Substantial Pricing Power on Rich F1 Racing Heritage

We find the long-term stability of Ferrari's revenue, addressable market growth, expansive profit margin, and solid returns on invested capital throughout economic cycles to be compelling reasons to invest at the right price. Because of its exclusive clientele of high-net-worth individuals, we believe the company will show resiliency during periods of economic uncertainty; such was the case with the coronavirus pandemic in 2020. While we are not entirely averse to paying up for stocks that possess a wide economic moat and stable economic profits through business cycles, we think Ferrari shares will regularly trade at rich, luxury goods valuation multiples.

Price vs Fair Value

RACE is trading within a range we consider fairly valued.
Price
$439.59
Fair Value
$853.00
Uncertainty
Medium
1-Star Price
$153.44
5-Star Price
$167.70
Economic Moat
Ryg
Capital Allocation
Nnczhmtvl

Bulls Say, Bears Say

Bulls

Ferrari's low volatility in revenue and profitability, gross margins in excess of 55%, EBITDA margins above 30%, and high ROICs are characteristics of substantial pricing power and commensurate with the metrics of luxury goods companies.

Bears

Highly dependent on F1 racing and exclusivity, Ferrari risks damaging the brand on a prolonged racing title drought and hurried road car volume expansion.

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News

Trading Information

Previous Close Price
$439.16
Day Range
$435.56438.68
52-Week Range
$267.80442.80
Bid/Ask
$410.49 / $450.00
Market Cap
$78.53 Bil
Volume/Avg
176,385 / 305,977

Key Statistics

Price/Earnings (Normalized)
26.36
Price/Sales
12.25
Dividend Yield (Trailing)
0.46%
Dividend Yield (Forward)
0.61%
Total Yield
1.09%

Company Profile

Ferrari engineers and manufactures some of the world's most expensive exotic sports cars. The Ferrari brand is synonymous with Formula One racing, exclusivity, Italian design, and state-of-the-art technology. Ferrari also has a captive finance company that provides funding for dealers and clients. In 2022, Europe, Middle East, and Africa accounted for 48% of revenue, the Americas was 28%, China was 12%, and the rest of Asia was 12%.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Growth
Total Number of Employees
4,988

Competitors

Valuation

Metric
RACE
MBGAF
STLAM
Price/Earnings (Normalized)
26.365.434.10
Price/Book Value
23.250.840.97
Price/Sales
12.250.510.44
Price/Cash Flow
35.243.772.94
Price/Earnings
RACE
MBGAF
STLAM

Financial Strength

Metric
RACE
MBGAF
STLAM
Quick Ratio
2.600.900.90
Current Ratio
3.561.261.24
Interest Coverage
54.8829.0815.84
Quick Ratio
RACE
MBGAF
STLAM

Profitability

Metric
RACE
MBGAF
STLAM
Return on Assets (Normalized)
15.84%5.58%10.04%
Return on Equity (Normalized)
44.84%16.40%25.58%
Return on Invested Capital (Normalized)
23.09%8.36%17.50%
Return on Assets
RACE
MBGAF
STLAM
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TM
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MBGAF
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BMWYY
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VWAGY
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VWAPY
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HMC
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