Ferrari N.V.

RACE

$409.95

-1.91%

N/A-$7.98

Consumer Cyclical

Auto - Manufacturers

NYSE

Active Trading

Ferrari N.V. is a renowned automotive manufacturer primarily engaged in the creation, engineering, production, and sale of an exclusive range of high-performance ...

Fundamental Analysis of RACE

Key Strengths

Sustained high profitability: net margin ~22.3%, operating margin ~29.8%, EBITDA margin ~38.8%

Strong returns on capital: ROE ~42.6%, ROA ~16.0%, ROIC ~18.8% (return on invested capital)

Risk Factors

Valuation risk: P/E ~40x and relatively low FCF yield (~2.6%) leave limited room for execution missteps

Demand cyclicality within luxury autos: production/mix targets may be pressured in macro slowdowns

Profitability

Net Margin22.27%

Operating Margin29.78%

Valuation

P/E Ratio38.71x

Current Ratio2.37

Efficiency

ROE42.56%

ROA16.03%

Fundamental Analysis of RACE

Ferrari N.V. (RACE) is a high-end luxury auto manufacturer with an integrated brand-and-racing flywheel (road cars, motorsport, licensed merchandise, and experiences). Fundamentally, the company shows strong profitability and excellent capital efficiency for an automaker, supported by pricing power and disciplined production/exclusivity. Based on the latest ttm financial snapshot provided, Ferrari’s net margin is ~22.3%, with operating margin ~29.8% and EBIT margin ~29.6%. EBITDA margin is very strong at ~38.8%, consistent with a business model that captures premium pricing while maintaining tight cost control. Return metrics are similarly elevated: ROE ~42.6% and ROA ~16.0%, indicating strong value creation from both equity and operating assets. Balance-sheet liquidity appears healthy, with a current ratio of ~2.37 and a quick ratio of ~1.81. Leverage is moderate for the sector: debt-to-equity is ~0.865 and net debt-to-EBITDA is ~0.589. Interest coverage is extremely high (~51.9x), suggesting low near-term debt-service risk. Valuation, however, is demanding. Price-to-earnings is ~40.16x and EV/EBITDA ~23.46x, with free-cash-flow yield ~2.6% (and FCF yield derived from the provided snapshot). This implies that the market is pricing in continued premium growth, sustained margins, and favorable demand/brand strength. The company also trades at a high price-to-book (~17.9x), typical for asset-light/high-intangibles businesses but still highlights the need for execution. Overall, Ferrari’s fundamentals point to a high-quality, brand-led franchise with strong profitability, liquidity, and resilience—yet the investment case is increasingly sensitive to any moderation in margins, delivery growth, or racing/brand-related perceptions. For long-term investors, the key question is whether Ferrari can maintain its pricing power and mix (including limited editions and hypercar demand) while transitioning to electrification without eroding margins or increasing capital intensity faster than expected.

Key Strengths of RACE

Sustained high profitability: net margin ~22.3%, operating margin ~29.8%, EBITDA margin ~38.8%
Strong returns on capital: ROE ~42.6%, ROA ~16.0%, ROIC ~18.8% (return on invested capital)
Premium brand and racing-driven demand that supports pricing power and margin resilience
Healthy liquidity with current ratio ~2.37 and quick ratio ~1.81
Low near-term financing risk: interest coverage ~51.9x and strong debt service coverage (~2.4x provided)
Moderate leverage for a luxury manufacturer: debt-to-equity ~0.865 and net debt-to-EBITDA ~0.589
Disciplined cash generation reflected in strong enterprise value multiples relative to operating cash flow/FCF (EV/FCF ~39.9x)

Risk Factors of RACE

Valuation risk: P/E ~40x and relatively low FCF yield (~2.6%) leave limited room for execution missteps
Demand cyclicality within luxury autos: production/mix targets may be pressured in macro slowdowns
Brand and motorsport exposure: prolonged performance issues (including racing drought) could weaken brand heat and margins
Electrification/technology transition costs and timeline risk: higher development and compliance spending could pressure profitability
Regulatory and legal risks across markets (emissions/vehicle rules, advertising/brand protection, and corporate compliance)
Concentration of growth drivers: heavy reliance on limited-edition/high-end demand and the ability to sustain pricing
Foreign exchange and geopolitical risks given global revenue footprint (Italy/Europe exposure; USD-denominated investor base)

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$73.52B

38.7x

P/E Ratio

8.5x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin51.62%

Net Profit Margin22.27%

Debt/Equity Ratio0.87

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of RACE

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of RACE

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	23.85%	—	—	Flat
Operating Margin	—	31.66%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of RACE

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	2.368	—	—	Flat
Quick Ratio	—	1.805	—	—	Flat
Debt / Equity	—	0.865	—	—	Flat

Valuation of RACE

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	31.09x	—	—	Flat
P/B	—	15.72x	—	—	Flat

Supply Chain of RACE

RELATIONS

Upstream

Brembo N.V.BIT:BREPirelli & C. S.p.A.BIT:PIRCSK On (subsidiary of SK Innovation)KRX:096770Shell plcLON:SHELNovelis Inc. (subsidiary of Hindalco Industries)NSE:HINDALCOPPG Industries, Inc.NYSE:PPGMAHLE GmbHMichelinENXTPA:MLMarelli Holdings (formerly Magneti Marelli)ZF Friedrichshafen AG (Sachs brand)Robert Bosch GmbHSparco S.p.A.OMR (Oficine Meccaniche Rezzatesi)Arcese GroupCEVA Logistics (subsidiary of CMA CGM Group)ART S.p.A.Hindalco Industries Ltd.NSE:HINDALCOSK Innovation Co., Ltd.KRX:096770

Downstream

Penske Automotive GroupNYSE:PAG AutoNation, Inc.NYSE:AN Group 1 Automotive, Inc.NYSE:GPIInchcape plcLON:INCHHaas F1 Team (Haas Automation)Cadillac Formula 1 Team / General MotorsNYSE:GMEnd customers (UHNW individuals)

Proxies

Porsche Automobil Holding SEXETRA:PAH3Brembo N.V.BIT:BREPirelli & C. S.p.A.BIT:PIRC

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