Ferrari Stock: A Top Pick NYSE:RACE
The Italian automaker’s extraordinary pricing power gives it a chance to take much more of each dollar earned to its bottom line, and that’s something it does extremely well. Finder.com is an independent comparison platform and information service that aims to provide you with information DotBig to help you make better decisions. We may receive payment from our affiliates for featured placement of their products or services. We may also receive payment if you click on certain links posted on our site. Finder recognizes the best share trading platforms for every type of investor.
In my opinion, the long-term growth assumption equal to GDP growth might definitely be an underestimation, in my opinion, but I prefer to be conservative. If investors might want to consider a different scenario, I have also enclosed a sensitivity analysis based on varying WACC and TV growth combination. For reference, red cells imply an overvaluation, while green cells imply an undervaluation as compared to Ferrari’s current valuation. Even for a luxury company, this valuation premium is not justified, in my opinion.
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Currently 33.798% of Ferrari shares are held by insiders and 44.474% by institutions. ESG http://dotbig.com/markets/stocks/RACE/ scores also evaluate any incidences of controversy that a company has been involved in.
It was not until 1947 that the first Ferrari-badged car, the 125 S, was produced. Ferrari has since then produced a couple of iconic models, but it is the 1960s Ferrari 250 GTO that takes the title of the most exclusive car, having sold for over $38 million at a 2014 auction. The company was subject to a failed controversial acquisition by Ford, but it was Fiat that managed to buy a 50% stake https://dotbig.com/ in Ferrari in 1969. Fiat then increased its stake in Ferrari to 90% following the death of Enzo in 1988. Ferrari has made a beautiful investment for many, as you can see, with a 256% gain since its 2015 initial public offering . These eye-popping prices are driven by factors like high quality, Ferrari’s powerful brand image, and the extreme exclusivity that boasts demand far exceeding supply.
Ferrari margins race ahead
Ferrari’s incredible operating margins enable it to trade more like a luxury product manufacturer rather than a mainstream automaker — and these valuations are justified. Further, mainstream automakers’ margins have flatlined over the past decade, while Ferrari’s are still trending up as it continues to drive its pricing power and improves operations. Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision. Environmental, social and governance criteria are a set of three factors used to measure the sustainability and social impact of companies like Ferrari. The EBITDA is a measure of a Ferrari’s overall financial performance and is widely used to measure a its profitability.
I anchor my valuation on a residual earnings framework and EPS analyst consensus estimates. Thus, I see more than 35% downside for the stock before the risk/reward becomes balanced. When running Ferrari NV price analysis, check to measure Ferrari NV’s market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ferrari NV is operating at the current time. Most of Ferrari NV’s value examination focuses on studying past and present price action to predict the probability of Ferrari NV’s future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ferrari NV’s price.
- While most are submarines, some icebreakers and aircraft carriers are also nuclear-powered.
- It’s even likely that as the company pushes more SUV sales — a strategy that is new to the ultra-luxury carmaker — these margins could continue to move higher.
- Currently 33.798% of Ferrari shares are held by insiders and 44.474% by institutions.
- Visit their profiles for more details about their stock ratings and see how they perform on a stock-by-stock basis.
- There are currently 4 hold ratings and 7 buy ratings for the stock.
Ferrari investors couldn’t have been surprised by news it unveiled its long-awaited first SUV, but the shares nevertheless notched a solid gain. Ferrari has no evidence of a breach of its systems or ransomware, the luxury sports car maker said in a statement on Monday, adding that there had been no disruption to its business and operations. Shareholders of record on Wednesday, April 20th will be paid a dividend Ferrari stock of $1.362 per share on Friday, May 6th. Ferrari NV is a holding company, which engages in the design, engineering, production, and sale of luxury sports cars. The firm’s models include the F12Berlinetta, 488GTB, 488 Spider, 458 Speciale, California T, the LaFerrari Hybrid, LaFerrari, and the FF four-wheel drive. The company was founded by Enzo Anselmo Ferrari in 1939 and is headquartered in Maranello, Italy.
Industry, Sector and Symbol
In the past three months, Ferrari insiders have not sold or bought any company stock. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. On top of this, you will get access to Trading Central, AvaSocial and Guardian Angel add-ons to maximise your trading potential. Many jurisdictions around the world are enacting tough legislation regarding the issue of CO2 emissions. This does not sit well with Ferrari, whose high-performance cars cannot easily keep up with such legislation.
This Under-the-Radar Stock Could Easily Be Recession-Proof
On the 15th of October 2015, Ferrari went public, listing on the New York Stock Exchange , where it trades under the ticker symbol RACE. The stock falls in the Consumer Cyclicals DotBig sector, under the Automobiles category. Ferrari also cross-listed on Borsa Italiana on the 4th of January 2016. The highest, average, and lowest price target of all analysts.
Ferrari scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Ferrari has, for the most part, managed to keep its nose clean. Fund your account with a bank transfer, debit card or credit card and take advantage of any signup bonuses.
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Ferrari’s environmental score of 11.14 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Ferrari is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
The company is scheduled to release its next quarterly earnings announcement on Wednesday, February 1st 2023. Based on earnings estimates, Ferrari will have a dividend payout ratio of 25.04% next year.