Ferrari NV (RACE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Iveco Group NV

Piaggio & C SpA

Ferrari NV

Pininfarina SpA

Stellantis NV

Immsi SpA

Askoll EVA SpA

Estrima SpA

Why is Ferrari NV ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 32.53%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.12 times

With ROE of 39.55%, it has a Very Expensive valuation with a 20.62 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.73%, its profits have risen by 0.9% ; the PEG ratio of the company is 52.1

Underperformed the market in the last 1 year

Even though the market (Italy FTSE MIB) has generated returns of 27.29% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.73% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Ferrari NV for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ferrari NV

-100.0%

-0.32

35.71%

Italy FTSE MIB

27.29%

1.67

16.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.28%

EBIT Growth (5y)

22.40%

EBIT to Interest (avg)

26.11

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.96

Tax Ratio

22.87%

Dividend Payout Ratio

40.32%

Pledged Shares

Institutional Holding

34.56%

ROCE (avg)

36.10%

ROE (avg)

38.47%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

20.62

EV to EBIT

39.57

EV to EBITDA

29.95

EV to Capital Employed

17.03

EV to Sales

11.71

PEG Ratio

52.14

Dividend Yield

81.37%

ROCE (Latest)

43.04%

ROE (Latest)

39.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Ferrari NV

Profit Before Tax less Other Income (PBT) - Quarterly

At EUR 439 MM has Grown at 18.6 %

over average PBT of the previous four periods of EUR 370 MM

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (EUR MM)

Operating Cash Flow - Annually

Highest at EUR 1,716.64 MM and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Operating Profit to Interest - Quarterly

Highest at 68.20 times

in each of the last 5 periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest (EUR MM)

Net Sales - Quarterly

Highest at EUR 1,585 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (EUR MM)

Net Sales - Quarterly

At EUR 1,585 MM has Grown at 6.2 %

over average Net Sales of the previous four periods of EUR 1,492 MM

MOJO Watch

Near term sales trend is positive

Net Sales (EUR MM)

Operating Profit (PBDIT) - Quarterly

Highest at EUR 611 MM.

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at EUR 439 MM.

in the last five periods

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (EUR MM)

Profit After Tax (PAT) - Quarterly

Highest at EUR 352 MM.

in the last five periods

MOJO Watch

Near term PAT trend is positive

PAT (EUR MM)

Profit After Tax (PAT) - Quarterly

At EUR 352 MM has Grown at 12.1 %

over average PAT of the previous four periods of EUR 314 MM

MOJO Watch

Near term PAT trend is positive

PAT (EUR MM)

Earnings per Share (EPS) - Quarterly

Highest at EUR 1.95

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (EUR)

Debt-Equity Ratio - Half Yearly

Lowest at 0.34 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Ferrari NV

Debtors Turnover Ratio- Half Yearly

Lowest at 16.79 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio