Race Stock Fundamental Evaluation : Is Ferrari Good Investment?

Take a Close Look on the History of RACE Stock

Ferrari, one of the leading sports car manufacturers worldwide was founded by Enzo Ferrari on 13 September 1939. The company manufactures luxury and sports cars including Scuderia Ferrari, 250 Testa Rossa, Ferrari SF90 Stradale etc. Currently, Ferrari has around 4,919K employees contributing to the firm in generating an annual revenue of around €5.09 Billion. Benedetto Vigna is the current CEO of Ferrari since September 2021 and generates net worth of €3.98 Million. He is actively working to achieve Ferrari’s vision to combine advanced technological solutions with artisanal crafts to stay timeless in the fast-moving world. Looking forward, the company’s business model is based on high-margin production, low volume and customized cars that appeal to passionate and wealthy customers. Ferrari generates revenues from its sponsorship, licensing, merchandising activities and participation in formula one racing championship. The main competitors of Ferrari are Maserati, McLaren, Aston Martin, Lamborghini and Tesla.

On October 21, 2015, the initial public offering of common shares of the firms took place. At present, the company holds around 181.14 Million shares outstanding. Also, Exor is the biggest shareholder of Ferrari, holding approximately 24.4% shares.

Is RACE Fundamentals strong?

According to Brand Finance Global 500, Ferrari is the second strongest brand world wide in 2021 ranking. The company holds a strong and unbeatable position in the global automotive market with a market cap of €69.692 Billion. The annual revenue of the firm is €5.09 Billion and net income is €932.61 Million. The price to earning ratio (TTM) of Ferrari is 47.9 and the basic EPS is €5.9.

Focusing on the income statement of Q2, 2023, the quarterly revenue of the company was €1.47 Billion with net income of €333.19 Million. Also, the quarterly revenue in Q1, 2023 was around €1.43 Billion with a net income of €295.53 Million.

Strong growth and progress of RACE is observed in the second quarter of 2023 mainly in terms of revenues and net income.

The Earnings per share (EPS) enhanced by 10.5% in 2020 to hit €3.46 per share. Also, the operating income of the company enhanced by 7% in 2020 to reach €855 Million.

Conclusion

Ferrari, a luxury car brand, is listed among the most innovative and rapidly growing firms in the international market. The company reported higher second quarter profits and revenues making it a strong player in the stock market. The stock is good to invest at present. However, it is advised to the investors and traders to make proper analysis for the next move.

Disclaimer

The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in crypto involves risk. Please assess your situation and risk tolerance before making any investment decisions.