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Ferrari
(NYSE:RACE)
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Rating:81Outperform
Price Target:
€418.00
▲(31.38% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by exceptional financial performance (premium margins and solid cash generation) and a constructive earnings update with raised 2026 guidance and strong demand visibility. Technicals also support the profile with a clear uptrend, while the main constraint is valuation—high P/E and only a modest dividend yield.
Positive Factors
Exceptional profitability and pricing power
Ferrari’s unusually high and resilient margins indicate strong pricing power, disciplined cost control and brand-led mix advantages. Sustained profitability provides capacity to fund product development, absorb cost inflation and support shareholder returns.
Negative Factors
Moderate and fluctuating leverage
Although leverage appears manageable, debt-to-equity is not low and has fluctuated over time. If earnings soften or financing conditions tighten, interest obligations could reduce flexibility for investment, buybacks or dividends.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability and pricing power
Ferrari’s unusually high and resilient margins indicate strong pricing power, disciplined cost control and brand-led mix advantages. Sustained profitability provides capacity to fund product development, absorb cost inflation and support shareholder returns.
Read all positive factors
Ferrari (RACE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€78.42B
Dividend Yield1%
Average Volume (3M)501.02K
Price to Earnings (P/E)39.1
Beta (1Y)1.03
Revenue Growth5.68%
EPS Growth3.62%
CountryIT
Employees5,743
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)9.24
Shares Outstanding177,278,900
10 Day Avg. Volume334,475
30 Day Avg. Volume501,021
Financial Highlights & Ratios
PEG Ratio5.89
Price to Book (P/B)14.53
Price to Sales (P/S)7.94
P/FCF Ratio30.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€405.44Price Target Upside27.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)9.85
Revenue Forecast (FY)€7.65B
Ferrari Business Overview & Revenue Model
Company Description
Ferrari N.V., established in Maranello, Italy, in 1947, operates as a prestigious automotive company focused on the design, engineering, manufacturing, and global sales of high-performance luxury sports vehicles. Its diverse product range features...
How the Company Makes Money
Ferrari primarily makes money by selling luxury sports cars and related options to customers and dealers, with revenue driven by vehicle deliveries, product mix, customization, and pricing power associated with brand exclusivity. A significant por...
Ferrari Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presents a generally positive picture: strong top-line growth (11% CC / 8% reported), high profitability (EBIT margin 31.2%), robust free cash flow and a strengthened product portfolio highlighted by successful launches (Ferrari Luce, 12Cilindri Manuale). Personalization trends materially beat expectations (~20% of cars & spare parts revenues), supporting an upward guidance revision. Headwinds include model changeover-driven volume phasing, higher SG&A/R&D/D&A in H2, a working capital build, regional shipment softness in the Americas and medium-term FX uncertainty beyond the current hedges. On balance, the highlights—especially demand, pricing/personalization and product innovation—outweigh the lowlights.Positive Updates
Strong Quarterly Financials
Q2 revenues of EUR 1.94 billion, EBITDA of EUR 755 million and industrial free cash flow of EUR 275 million; net revenues grew 11% at constant currency and 8% reported year-over-year.
Negative Updates
Regional Shipment Weakness in Americas
Shipments in the Americas were down year-over-year in Q2; management attributes this to planned model rollout phasing and personalization-driven production timing rather than demand weakness, but the decline surprised some investors.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Financials
Q2 revenues of EUR 1.94 billion, EBITDA of EUR 755 million and industrial free cash flow of EUR 275 million; net revenues grew 11% at constant currency and 8% reported year-over-year.
Read all positive updates
Company Guidance
Ferrari said it has raised its 2026 full‑year guidance driven by stronger‑than‑expected personalization and a more favorable FX environment; Q2 results showed revenues €1.94bn, EBITDA €755m, EBIT margin 31.2% and EBITDA margin 39%, industrial free cash flow €275m and net industrial debt €131m at end‑June (after the May dividend and ongoing share repurchases). Updated guidance assumptions include personalizations accounting for >20% of cars & spare‑parts revenues, a USD/EUR rate of ~1.16 and additional hedges now in place (≈80% of H2 exposure hedged), continued buybacks supporting EPS, CapEx focused on product and infrastructure (new paint shop), and full‑year D&A above €700m with D&A, SG&A and R&D expected to rise in H2 (partly offsetting margin upside).Ferrari Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.35B | 7.15B | 6.68B | 5.97B | 5.10B | 4.27B |
| Gross Profit | 3.80B | 3.69B | 3.35B | 2.97B | 2.45B | 2.19B |
| EBITDA | 2.85B | 2.77B | 2.59B | 2.29B | 1.77B | 1.53B |
| Net Income | 1.64B | 1.60B | 1.52B | 1.25B | 932.61M | 830.77M |
Balance Sheet | ||||||
| Total Assets | 10.21B | 9.86B | 9.50B | 8.05B | 7.77B | 6.86B |
| Cash, Cash Equivalents and Short-Term Investments | 1.51B | 1.55B | 1.75B | 1.13B | 1.40B | 1.35B |
| Total Debt | 3.17B | 2.88B | 3.35B | 2.48B | 2.81B | 2.63B |
| Total Liabilities | 6.55B | 5.95B | 5.95B | 4.98B | 5.16B | 4.65B |
| Stockholders Equity | 3.66B | 3.91B | 3.53B | 3.06B | 2.59B | 2.21B |
Cash Flow | ||||||
| Free Cash Flow | 1.68B | 1.86B | 937.50M | 847.73M | 598.72M | 545.58M |
| Operating Cash Flow | 2.41B | 2.35B | 1.93B | 1.72B | 1.40B | 1.28B |
| Investing Cash Flow | -969.10M | -944.14M | -987.11M | -866.45M | -805.41M | -732.74M |
| Financing Cash Flow | -1.47B | -1.67B | -324.76M | -1.11B | -553.56M | -579.67M |
Ferrari Technical Analysis
Positive
318.15
Price Trends
330.06
Positive
311.88
Positive
311.63
Positive
Market Momentum
8.78
Negative
68.63
Neutral
73.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RACE, the sentiment is Positive. The current price of 318.15 is below the 20-day moving average (MA) of 343.72, below the 50-day MA of 330.06, and above the 200-day MA of 311.63, indicating a bullish trend. The MACD of 8.78 indicates Negative momentum. The RSI at 68.63 is Neutral, neither overbought nor oversold. The STOCH value of 73.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:RACE.
Ferrari Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | €78.42B | 39.14 | 42.56% | 1.14% | 5.68% | 3.62% | |
74 Outperform | €1.42B | 12.75 | 21.80% | 2.73% | 2.69% | 3.17% | |
66 Neutral | €7.26B | 13.29 | 8.67% | 5.00% | -0.77% | 0.46% | |
65 Neutral | €1.02B | 11.28 | 9.77% | 3.82% | 1.16% | -3.56% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | €64.97M | -20.86 | -10.50% | ― | 36.39% | 54.29% | |
46 Neutral | €17.39B | -0.66 | -33.82% | ― | -2.15% | -525.09% |
* Consumer Cyclical Sector Average
IT:RACE
Ferrari
361.65
-39.19
-9.78%
IT:STLAM
Stellantis
4.43
-4.15
-48.39%
IT:PINF
Pininfarina SPA
0.83
-0.06
-7.19%
IT:PIRC
Pirelli & C. SpA
6.65
0.97
17.03%
IT:SL
Sanlorenzo S.p.A.
39.28
8.93
29.43%
IT:YACHT
Ferretti S.p.A.
3.00
0.33
12.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.