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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. faces short-term challenges, with investors reassessing growth expectations and risk. The luxury automaker's recent earnings release showed a profit of €382 million, beating analyst estimates, but a cautious outlook led to a stock decline. Analysts cite a cooling in momentum, with ASP growth expectations still fueling optimism. A 17% year-to-date drop raises questions about the share price's justification, particularly with electrification plans underway. Despite this, long-term holders have enjoyed significant returns, with an 83% total return over three years.

1.c. Company Highlights

2. Ferrari's Q3 2025 Earnings: Strong Revenue Growth and Margin Expansion

Ferrari reported a robust Q3 2025, with total revenues reaching approximately EUR 1.8 billion, a 7.4% growth year-over-year. The company's EBIT margin remained strong, with EBIT of over EUR 500 million. Earnings per share (EPS) came in at EUR 2.18, beating analyst estimates of EUR 2.1. Industrial free cash flow was EUR 365 million, demonstrating the company's ability to generate cash from its operations. As Antonio Piccon, Ferrari's CFO, noted, the growth in product mix and personalization contributed to the top-line growth, with the level of personalization being higher than expected.

Publication Date: Nov -05

📋 Highlights
  • Revenue Growth & Profitability Targets:: Q3 2025 revenues reached EUR 1.8 billion (+7.4% YoY), with EBIT exceeding EUR 500 million, and Ferrari revised 2025 guidance upward, aiming for EUR 9 billion revenue and 40% EBITDA margin by 2030.
  • Powertrain Strategy Shift:: Recalibrated to 40% ICE, 40% hybrid, and 20% electric vehicles, reflecting market dynamics and client preferences, with no long-term reduction planned in hybrid offerings.
  • Client Base Expansion:: Active client base grew to 90,000, with 50% of Amalfi buyers being new to the brand, emphasizing efforts to enhance client engagement through exclusive experiences and activities.
  • Decarbonization Commitments:: Targets 10x reduction in Scope 1/2 emissions by 2030 vs. 2021 and 25% reduction in Scope 3 emissions by 2030 vs. 2024, alongside infrastructure investments for sustainability.

Revenue Growth and Product Mix

Ferrari's revenue growth was driven by a positive product mix, with the company continuing to innovate and adapt to changing market dynamics. The company's powertrain offer is now 40% ICE, 40% hybrid, and 20% electric, reflecting its commitment to client centricity and market responsiveness. The launch of new models, such as the Ferrari Amalfi and the 849 Testarossa family, has been well-received, with the Amalfi model being particularly successful in attracting new clients to the brand.

Valuation and Pricing Power

Ferrari's pricing power remains intact, with the company able to innovate and delight its clients through unique products and experiences. The company's P/E Ratio is 39.49, and its P/S Ratio is 9.05, indicating that investors are pricing in a certain level of growth and profitability. With analysts estimating revenue growth of 9.0% next year, it remains to be seen whether Ferrari can continue to deliver on its ambitious plans. The company's EV/EBITDA ratio is 23.88, and its ROIC is 18.98%, indicating a strong ability to generate returns on invested capital.

Guidance and Outlook

Ferrari revised upward its 2025 guidance, exceeding the profitability target for 2026. The company expects lower deliveries year-over-year in Q4 due to the changeover of models, but anticipates a positive product mix. With a strong order backlog and a focus on executing its plans, Ferrari is well-positioned to continue delivering on its growth and profitability targets. The company's commitment to innovation and client centricity will be key to its continued success.

3. NewsRoom

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Is Ferrari’s lofty share price still justified after recent multi year surge?

Dec -04

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Ferrari N.V. (RACE): A Bull Case Theory

Dec -04

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FERRARI N.V. SIGNS A NEW SYNDICATED REVOLVING CREDIT FACILITY

Dec -03

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Infinix and Pininfarina Announce Strategic Design Partnership to Elevate the Future of Premium Smartphones

Dec -03

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Philip Morris International Expands its Partnership with Scuderia Ferrari HP, Launching a Bold New Chapter in Their Long-Standing Relationship

Dec -03

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IQ Option Marks Its 12th Anniversary and Launches a $56,000 Tournament

Dec -03

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Netflix gave him $11 million to make his dream show. Instead, prosecutors say he spent it on Rolls-Royces, a Ferrari, and wildly expensive mattresses

Dec -02

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

Dec -01

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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

Stock-Card
BMW

A-Score: 6.3/10

Value: 9.1

Growth: 5.6

Quality: 2.5

Yield: 8.8

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
VW

A-Score: 6.3/10

Value: 10.0

Growth: 3.6

Quality: 2.4

Yield: 10.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Mercedes-Benz

A-Score: 6.3/10

Value: 8.9

Growth: 4.9

Quality: 3.3

Yield: 10.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Michelin

A-Score: 5.9/10

Value: 6.4

Growth: 4.7

Quality: 4.7

Yield: 8.8

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Exor

A-Score: 4.7/10

Value: 7.7

Growth: 3.3

Quality: 7.3

Yield: 0.6

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Ferrari

A-Score: 4.2/10

Value: 0.7

Growth: 7.7

Quality: 7.2

Yield: 1.2

Momentum: 3.5

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

340.1$

Current Price

340.1$

Potential

-0.00%

Expected Cash-Flows