Ferrari N.V. (RACE) is listed on NYSE and operates in the Auto - Manufacturers industry (Consumer Cyclical sector).
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.
| Rating | Analysts |
|---|---|
| Strong Buy | 1 |
| Buy | 13 |
| Hold | 4 |
| Sell | 1 |
| Strong Sell | 0 |
Ferrari N.V., headquartered in Maranello, Italy, designs, engineers, produces, and sells luxury performance sports cars. The company offers a range of vehicles, including sports, GT, special series, limited edition hyper cars, one-off and track cars, and Icona cars. Ferrari also provides racing cars, spare parts, and engines, along with after-sales services such as repair, maintenance, and restoration. The company licenses its brand for luxury and lifestyle goods and operates Ferrari World in Abu Dhabi and Ferrari Land Portaventura in Europe. Additionally, Ferrari offers financing and leasing services to retail clients and dealers. It manages racetracks and owns two museums in Maranello and Modena, Italy. Ferrari also develops and sells apparel and accessories through its monobrand stores. As of December 31, 2021, Ferrari operated 30 retail stores, including 14 franchised and 16 owned locations, and sold products through 172 authorized dealers with 191 points of sale worldwide, as well as online via store.ferrari.com. Founded in 1947, Ferrari continues to be a prominent name in the luxury automotive industry.
Over the past three fiscal years, the company has demonstrated robust growth and improving profitability. Revenue consistently increased at a 9.4% CAGR, rising from €5.97 billion in 2023 to €7.15 billion in 2025. This growth was accompanied by significant improvements in profitability, with the operating margin expanding by 2.2 percentage points from 27.3% to 29.5%, and the net margin increasing by 1.4 percentage points to 22.3%. Earnings per share (EPS) also saw a strong increase, growing at a 14.0% CAGR from €6.90 to €8.96, further amplified by a slight reduction in share count. Cash generation was particularly impressive, with operating cash flow (OCF) and free cash flow (FCF) both more than doubling, with FCF reaching €2.66 billion by 2025, reflecting a 77.1% CAGR. The company's cash conversion ratio improved to 1.48, indicating that earnings are well-supported by cash flow. Despite the increase in net debt from €1.36 billion to €1.42 billion, the company's leverage remains manageable with a net debt to EBITDA ratio of 0.59. The company's capital efficiency is highlighted by a return on invested capital (ROIC) of 31.1%, underscoring its ability to generate substantial returns on its investments. Overall, the company has effectively leveraged its revenue growth into enhanced profitability and cash generation, while maintaining strong capital efficiency.
Ferrari N.V. recently held its Annual General Meeting, where shareholders approved the 2025 Annual Accounts and a cash dividend of Euro 3 per share, totaling approximately Euro 640 million. The AGM also renewed the Board's authorization to repurchase up to 10% of the company's common shares over the next 18 months. In line with this, Ferrari announced a Euro 250 million share buyback program as part of a multi-year initiative. Analyst sentiment remains mixed, with The Motley Fool highlighting Ferrari's stock trading below $400, despite a 759% increase over the past decade. Concerns include cyclical demand and competition, compounded by geopolitical tensions affecting sales in the Middle East. On the strategic front, Ferrari Films is launching a new reality series, "Hollywood Shot House." Institutional interest in Ferrari remains strong, with Exane Asset Management and Bank of New York Mellon Corp increasing their stakes significantly. Despite challenges, Ferrari maintains robust margins of 38.8%, though it has revised its electric vehicle sales target for 2030 from 40% to 20% of its lineup, citing feasibility concerns.
The luxury sports car industry, where Ferrari operates, is currently experiencing a dynamic phase influenced by macro trends such as electrification, regulatory changes, and evolving consumer preferences. The industry is seeing a gradual shift towards electric vehicles (EVs), although the adoption rate is slower than initially anticipated. Regulatory shifts, especially in emissions standards, are impacting product strategies. Ferrari's management identifies strong brand demand and a solid order book extending into 2027 as key tailwinds, while foreign exchange volatility and U.S. import tariffs present headwinds. The competitive landscape remains intense, with Ferrari emphasizing its unique brand heritage and technological innovation as differentiators. Consistently, across both calls, Ferrari has maintained its commitment to a diversified powertrain strategy, adapting to market dynamics while focusing on client-centric innovation.
Ferrari's recent performance has been marked by strong financial results, achieving revenue over EUR 7.1 billion and EBIT surpassing EUR 2.1 billion in 2025. This success is attributed to strategic product launches, including the Ferrari Luce, a full electric sports car, and other models like the 849 Testarossa and Amalfi. Management expressed satisfaction with the execution of their product diversification strategy and the solid demand for new models, which has bolstered their order book. However, they noted concerns over foreign exchange impacts and U.S. tariffs, which have been managed through strategic pricing adjustments. The narrative between the calls shifted slightly, with a stronger emphasis on the successful launch of the Ferrari Luce and its positive reception, highlighting Ferrari's ability to innovate and adapt to changing market conditions. Management's confidence in their strategic direction is evident, although they remain cautious about macroeconomic uncertainties.
Ferrari's forward strategy focuses on growth through product innovation, maintaining a diversified powertrain lineup, and enhancing client experiences. They are investing in new facilities like the e-building for flexible powertrain manufacturing and a new paint shop to support product quality and customization. Ferrari claims a competitive advantage through its brand heritage, technological innovation, and client-centric approach, which appear credible given their execution track record. However, risks include foreign exchange volatility, regulatory changes, and the challenge of balancing innovation with cost management. Analysts questioned the impact of new regulations and the potential for pricing adjustments in response to currency fluctuations. The tension in the thesis lies in Ferrari's ability to maintain its exclusivity and pricing power amid increasing competition and regulatory pressures. Long-term investors may be excited by Ferrari's innovation and brand strength but should be cautious of external economic factors and execution risks.
Comparing the two calls, Ferrari has largely delivered on its commitments. The launch of the Ferrari Luce and other models was executed as planned, contributing to strong financial performance. Management had set ambitious targets for 2025, which were met or exceeded, including achieving financial goals a year ahead of schedule. They revised their guidance upwards during the Capital Markets Day, reflecting confidence in their strategic execution. However, there was a notable silence on specific unit shipment numbers for certain models like the F80, indicating a cautious approach to managing expectations. Overall, management's execution appears consistent with their stated goals, although they remain vigilant about external challenges such as foreign exchange impacts and regulatory changes.
- Monitor the full introduction of the Ferrari Luce in 2026, including its world premiere in May, as a key indicator of Ferrari's strategic shift towards electrification.
- Track the ramp-up of new models like the 849 Testarossa and Amalfi, as their market reception will influence Ferrari's revenue growth and order book strength.
- Watch for updates on the construction progress of the new paint shop and e-building, which are critical for supporting Ferrari's product quality and customization capabilities.
- Pay attention to management's commentary on foreign exchange impacts and any adjustments to pricing strategies, as these will affect profitability.
- Observe developments in the regulatory landscape, particularly regarding emissions standards, as these could necessitate strategic adjustments in Ferrari's powertrain offerings.