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1. Company Snapshot

1.a. Company Description

Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars.The company offers sports, GT, and special series cars; limited edition hyper cars; one-off and track cars; and Icona cars.It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars.


In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates; and Ferrari Land Portaventura, a theme park in Europe.Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores.As of December 31, 2021, it had a total of 30 retail Ferrari stores, including 14 franchised stores and 16 owned stores.


The company also sells its products through a network of 172 authorized dealers operating 191 points of sale worldwide, as well as through its website, store.ferrari.com.Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.

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1.b. Last Insights on RACE

Ferrari N.V.'s recent performance has been impacted by several factors. The company's Q4 earnings and revenue beat estimates, with earnings and revenue surprises of +2.05% and +3.66%, respectively. Despite this, investors are reassessing the stock's valuation, with a rich P/E multiple. Analysts, such as Bank of America Securities' Horst Schneider, reiterate a Buy rating, but with a lowered price target. Ferrari's partnership with Brembo and appointment of a new head of performance operations also influenced the stock. Additionally, a Morgan Stanley downgrade and F1 struggles contributed to market nerves.

1.c. Company Highlights

2. Ferrari's 2025 Earnings: A Year of Remarkable Performance

Ferrari's 2025 full-year results show remarkable performance, with revenues over €7.1 billion, double-digit growth in EBIT (€2.1 billion), and industrial cash flow generation surpassing €1.5 billion. The company's EBITDA margin was 38.8%, and the EBIT margin was 29.5%. Earnings per share (EPS) came out at €2.11, beating analyst estimates of €2.08. The strong financial performance was driven by retail product and country mix, and higher personalizations, with revenues from cars and spare parts growing 8% at constant currency.

Publication Date: Feb -12

📋 Highlights
  • Revenue & Profit Growth:: 2025 revenues exceed €7.1 billion; EBIT jumps to €2.1 billion (+double-digit growth), with EBITDA margin at 38.8% and EBIT margin at 29.5%.
  • Product Launches:: Six new sports cars introduced, including the all-electric Ferrari Luce, while 2026 will add four more models to expand the product line.
  • Racing Success:: Ferrari clinches 2025 FIA World Endurance Championship, securing both Manufacturer's and Driver's titles, reinforcing brand prestige.
  • Order Book & Demand:: Solid order book extends through 2027, with 8% growth in car and spare parts revenue driven by personalization (+20% of revenue) and mix optimization.
  • Free Cash Flow & Guidance:: Industrial free cash flow surges to €1.5 billion (+50% YoY); 2026 targets 7% EBIT growth, 23% tax rate, and €1 billion CapEx for innovation and expansion.

Operational Highlights

The company launched six new sports cars, including the Ferrari Luce, a visionary new full-electric sports car. In racing, Ferrari secured the 2025 FIA World Endurance Championship, winning both World Manufacturer's and Driver's titles. Client activations and museum attendance were successful, with almost 900,000 visitors.

Guidance and Outlook

For 2026, Ferrari expects continued growth, with assumptions including a stronger product mix variance in the second half of the year, personalizations around 20% of cars and spare parts revenues, and increased investments in brand and lifestyle retail network. The company guides for 7% EBIT growth in 2026, exceeding the floor provided earlier. The effective tax rate is expected to be around 23%, and the industrial free cash flow generation will be sustained by profitability.

Valuation Metrics

With a P/E Ratio of 35.9 and an EV/EBITDA of 21.6, Ferrari's valuation appears to be premium. However, the company's strong brand and loyal customer base justify the premium. The dividend yield of 0.93% is relatively low, but the company's focus on growth and investment in new products is likely to drive long-term returns. The ROIC of 19.59% and ROE of 44.44% indicate strong profitability and efficient use of capital.

Product Pipeline and Strategy

The models driving Ferrari's order book are the 2026 Speciale, Testarossa, and Amalfi. The Amalfi has attracted new clients to the brand, with several coming from specific brands that appreciate performance and elegance. The company is confident in its product pipeline, with a strong order book extending towards the end of 2027.

3. NewsRoom

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FERRARI N.V.: PERIODIC REPORT ON THE BUYBACK PROGRAM

Feb -16

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Ferrari Luce And F1 Form Put EV Shift And Earnings In Focus

Feb -15

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The World's Top Electric Vehicle Stock Might Be Your Last Guess

Feb -14

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CYD vs. RACE: Which Stock Is the Better Value Option?

Feb -13

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Loomis Sayles Global Growth Fund Picked Ferrari N.V. (RACE) on Strategic Fit

Feb -13

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Formula 1 Phenom Ollie Bearman Joins Prenetics’ IM8 Health as Global Ambassador and Shareholder

Feb -13

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Ohio-based dealership group moves into ultra-luxury realm

Feb -13

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2 Top Overlooked EV Stocks to Buy in 2026

Feb -12

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.10%)

6. Segments

Auto Manufacturers

Expected Growth: 8.1%

Ferrari’s high-performance sports cars are driven by increasing demand for luxury vehicles, particularly among high-net-worth individuals, and a growing presence in emerging markets, such as Asia.

7. Detailed Products

Sports Cars

High-performance sports cars designed for speed and agility, featuring iconic designs and advanced technology.

Racing Cars

High-performance racing cars designed for professional racing, featuring advanced aerodynamics and lightweight materials.

Luxury Cars

Luxurious grand tourers and GT cars that combine comfort, style, and performance, featuring premium materials and advanced technology.

Ferrari Approved Certified Pre-Owned

Certified pre-owned Ferrari vehicles that have undergone rigorous inspections and refurbishment, offering a guarantee of quality and authenticity.

Ferrari Fashion and Accessories

Luxury fashion and accessories inspired by Ferrari's iconic style and performance, featuring high-quality materials and craftsmanship.

Ferrari Theme Park Experiences

Immersive theme park experiences that bring the Ferrari brand to life, featuring thrill rides, exhibits, and interactive attractions.

Ferrari Esports

Competitive esports competitions and simulations that allow gamers to experience Ferrari's performance and racing heritage.

8. Ferrari N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ferrari's products are highly differentiated and have a strong brand image, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

Ferrari's customers have some bargaining power due to the high-end nature of the products, but the brand's exclusivity and loyalty programs help to mitigate this.

Bargaining Power Of Suppliers

Ferrari has a strong supply chain and long-term relationships with suppliers, reducing the bargaining power of suppliers.

Threat Of New Entrants

The high barriers to entry in the luxury sports car market, including high R&D costs and regulatory hurdles, make it difficult for new entrants to emerge.

Intensity Of Rivalry

The luxury sports car market is highly competitive, with established players like Lamborghini and Porsche, and Ferrari must continually innovate and differentiate to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.25%
Debt Cost 3.95%
Equity Weight 48.75%
Equity Cost 8.81%
WACC 6.32%
Leverage 105.13%

11. Quality Control: Ferrari N.V. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mercedes-Benz

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Value: 8.7

Growth: 4.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 7.3

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VW

A-Score: 6.3/10

Value: 9.8

Growth: 3.4

Quality: 2.1

Yield: 9.4

Momentum: 6.5

Volatility: 6.7

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BMW

A-Score: 5.9/10

Value: 7.2

Growth: 5.6

Quality: 2.6

Yield: 8.1

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A-Score: 5.9/10

Value: 6.0

Growth: 4.6

Quality: 4.7

Yield: 8.8

Momentum: 3.0

Volatility: 8.3

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Exor

A-Score: 4.6/10

Value: 7.6

Growth: 3.3

Quality: 7.3

Yield: 0.6

Momentum: 0.5

Volatility: 8.3

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Ferrari

A-Score: 3.9/10

Value: 0.7

Growth: 7.7

Quality: 7.4

Yield: 1.2

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

317.6$

Current Price

317.6$

Potential

-0.00%

Expected Cash-Flows