Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/ferrari-n-v" target="_blank" data-smartkarma-citation="entities:21010:1" rel="noopener">Ferrari N.V. (RACE US)</a> reported another strong Q2 2024, with revenues up 16% and profits up 25% YoY. EBITDA margins expanded to 39% due to pricing/personalization(20%). </li>
<li>The company raised its guidance on revenue/EPS by 2.3%/5%, flagging Q3 would be weak as it transitions to its new ERP, but we believe the company is being conservative. </li>
<li>Trading at 48.7x FY24e, the stock seems a tad expensive, but it's up 28% YTD because of upgrades, which we believe will continue. </li>
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Ferrari N.V. (RACE US) reported another strong Q2 2024, with revenues up 16% and profits up 25% YoY. EBITDA margins expanded to 39% due to pricing/personalization(20%). 
The company raised its guidance on revenue/EPS by 2.3%/5%, flagging Q3 would be weak as it transitions to its new ERP, but we believe the company is being conservative. 
Trading at 48.7x FY24e, the stock seems a tad expensive, but it's up 28% YTD because of upgrades, which we believe will continue. 


Ferrari (RACE US) Q2 2024: Margin Uptrend Continues, No Demand Weakness

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<a href="https://www.smartkarma.com/entities/ferrari-n-v" target="_blank" data-smartkarma-citation="entities:21010:1" rel="noopener">Ferrari N.V. (RACE US)</a> reported yet another high-quality quarter with 11%/18% YoY revenue/net profit growth on a flat YoY(%) volume quarter driven by mix improvement.</li>
<li>Although there seems to be earnings upside, and the street was literally searching for it in the concall, management stuck to their 6.5%/9% revenue/net profit growth guidance for FY24.</li>
<li>Trading at 50x FY24, the stock seems expensive, but the strong branding and order book implies very visible earnings growth into the future.  </li>
</ul>



Ferrari N.V. (RACE US) reported yet another high-quality quarter with 11%/18% YoY revenue/net profit growth on a flat YoY(%) volume quarter driven by mix improvement.
Although there seems to be earnings upside, and the street was literally searching for it in the concall, management stuck to their 6.5%/9% revenue/net profit growth guidance for FY24.
Trading at 50x FY24, the stock seems expensive, but the strong branding and order book implies very visible earnings growth into the future.  


Ferrari Q1 FY24: Another Beat, Conservative Guidance And High-Quality Growth

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<a href="https://www.smartkarma.com/entities/ferrari-nv" target="_blank" data-smartkarma-citation="entities:24708:1" rel="noopener">Ferrari NV (RACE IM)</a> has been a steady compounder of earnings growing operating profits at 14% CAGR and sales volumes at 6% CAGR over the last 20 years. </li>
<li>The company has expanded EBITDA margins from 25% in 2014 to 35% in 2022 and is expected to increase by another 300 bps in FY23 to 38%, as per guidance. </li>
<li>At 41x/35x FY23e/FY24e, we conceded it is a tad expensive, but we would look at investing in this company over the long term.</li>
</ul>



Ferrari NV (RACE IM) has been a steady compounder of earnings growing operating profits at 14% CAGR and sales volumes at 6% CAGR over the last 20 years. 
The company has expanded EBITDA margins from 25% in 2014 to 35% in 2022 and is expected to increase by another 300 bps in FY23 to 38%, as per guidance. 
At 41x/35x FY23e/FY24e, we conceded it is a tad expensive, but we would look at investing in this company over the long term.


Ferrari: Classic Fisher Company, Almost Perfect Score on The Fisher 15 Framework

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<a href="https://www.smartkarma.com/entities/ferrari-n-v" target="_blank" data-smartkarma-citation="entities:21010:1" rel="noopener">Ferrari N.V. (RACE US)</a> continued its stellar quarterlies, showing no signs of a slowdown, with Q4 2023 revenue/profits increasing 11.3%/34% YoY.</li>
<li>FY24 will see the newly launched Purosangue become 20% of the product mix, and personalization trends continue with a mid-single-digit price hike. Ferrari Lifestyle brand will continue strong growth.</li>
<li>Trading at 48x/41x FY24e/25e, the stock seems expensive, but growth at a &gt;25% ROCE seems highly probable in the not-to-distant future.</li>
</ul>



Ferrari N.V. (RACE US) continued its stellar quarterlies, showing no signs of a slowdown, with Q4 2023 revenue/profits increasing 11.3%/34% YoY.
FY24 will see the newly launched Purosangue become 20% of the product mix, and personalization trends continue with a mid-single-digit price hike. Ferrari Lifestyle brand will continue strong growth.
Trading at 48x/41x FY24e/25e, the stock seems expensive, but growth at a &gt;25% ROCE seems highly probable in the not-to-distant future.


Ferrari Q4 2023: Just Killing It! No Slowdown in Ultra High-End Luxury

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<li>In our prior insight <a href="https://www.smartkarma.com/insights/ferrari-classic-fisher-company-almost-perfect-score-on-the-fisher-15-framework" target="_blank" data-smartkarma-citation="insights:101331" rel="noopener">Ferrari: Classic Fisher Company, Almost Perfect Score on The Fisher 15 Framework</a>, we talked about <a href="https://www.smartkarma.com/entities/ferrari-n-v" target="_blank" data-smartkarma-citation="entities:21010:1" rel="noopener">Ferrari N.V. (RACE US)</a> being a classic Fisher company.</li>
<li>Q2 2023 (a quarter with 14% revenue growth/34% profit growth) showed the execution runway (order book/product mix) is tremendous, and over the long term, value can be created.</li>
<li>In the short term, though, trading at 46x/40x FY23e/FY24e despite upping its guidance, there could be a case to queue up for a more favorable entry price. </li>
</ul>


In our prior insight Ferrari: Classic Fisher Company, Almost Perfect Score on The Fisher 15 Framework, we talked about Ferrari N.V. (RACE US) being a classic Fisher company.
Q2 2023 (a quarter with 14% revenue growth/34% profit growth) showed the execution runway (order book/product mix) is tremendous, and over the long term, value can be created.
In the short term, though, trading at 46x/40x FY23e/FY24e despite upping its guidance, there could be a case to queue up for a more favorable entry price. 


Ferrari (RACE US) Q2 2023: The Perfect Fisher Framework Stock That Keeps Executing

Italy

Ferrari NV designs and manufactures sports cars. The Company offers new and used vehicles, warranty programs, financial supports, and maintenance, as well as watches, apparels, earphones, caps, and other accessories. Ferrari markets its products worldwide.

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Ferrari N.V. (RACE US)

Ferrari (RACE US) Q2 2024: Margin Uptrend Continues, No Demand Weakness

We summarize Ferrari's (RACE US) results for Q2 2024 as well as the post-results conference call. The stock trades at 48.7x FY24e PE but there is...

Sameer Taneja

Ferrari Q1 FY24: Another Beat, Conservative Guidance And High-Quality Growth

We summarize the results of Ferrari and concall highlight for Q1 FY24. Ferrari is reaffirming its strong branding with strong realizations, a title...

Sameer Taneja

Ferrari: Classic Fisher Company, Almost Perfect Score on The Fisher 15 Framework

Ferrari is a classic Fisher stock. We analyze Ferrari based on the Fisher 15 criteria and find that it meets almost all criteria, implying it could...

Sameer Taneja

Ferrari Q4 2023: Just Killing It! No Slowdown in Ultra High-End Luxury

Trading at 48x/41x FY24e/25e, Ferrari is expensive, but growth of 10-15% at >25% ROCE + margin accretion will aid the company in holding on to its...

Sameer Taneja

Ferrari (RACE US) Q2 2023: The Perfect Fisher Framework Stock That Keeps Executing

Ferrari is a classic Fisher stock with execution par excellence (long-term ROCE > 20%) and EBITDA margins trending at 40%. We provide constructive...

Sameer Taneja

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