Ferrari N.V. (RACE) AI Stock Analysis

Ferrari N.V., through its subsidiaries, designs, engineers, manufactures, and markets luxury performance sports cars globally. Its vehicle lineup encompasses sports cars, GT models, special series cars, limited edition hyper cars, one-off creations, track-focused vehicles, and racing cars. The company also delivers after-sales maintenance, repairs, and restoration services. Beyond automobiles, Ferrari monetizes its brand via licensing agreements, theme parks including Ferrari World in Abu Dhabi and Ferrari Land Portaventura in Europe, as well as apparel and accessories retail. It additionally operates museums in Italy, manages racetracks, and provides finance and leasing services for dealers and retail customers.

Ferrari grew revenue from $4.27B in FY2021 to $7.15B in FY2025, achieving a 5-year revenue CAGR of 15.6% from FY2020 to FY2025. Over this period, net income increased from $830.8M to $1.60B, while diluted EPS expanded from $4.49 to $8.96. Gross margin stood at 51.7% in FY2025, and operating margin improved to 29.3%. For the trailing twelve months ended June 30, 2026, revenue reached $7.35B with an operating margin of 31.1% and EPS of $10.77. In the latest quarter ended June 30, 2026, revenue grew 8.4% year-over-year while quarterly earnings rose 10.1%.

As of June 30, 2026, Ferrari held $1.51B in cash and short-term investments against total debt of $3.16B, resulting in net debt of $1.65B. Shareholders' equity was $3.65B, yielding a debt-to-equity ratio of 0.87 and a current ratio of 2.37. In FY2025, operating cash flow was $4.18B and free cash flow was $2.66B. Cash deployment in FY2025 included $1.52B in capital expenditures, $1.34B in share buybacks, and $1.06B in dividends paid, contributing to a 5-year share count reduction of 4.2%.

At a share price of $397.53, Ferrari trades at a trailing P/E of 36.9x and a forward P/E of 32.6x, compared to medians of 18.0x and 14.1x for its US-listed Consumer Cyclical peers. The stock's price-to-sales ratio is 9.5x and EV/EBITDA is 23.1x, above the peer medians of 0.7x and 11.1x, respectively. Over the 1-year period, the stock gained 2.5% versus 16.8% for the S&P 500 (SPY), while its 5-year return of 85.6% outpaced the S&P 500 return of 83.0%.

Ferrari pays an annual dividend with a forward rate of $4.23 per share, representing a dividend yield of 1.06% and a payout ratio of 44.0%. The company has paid dividends for 11 consecutive years, delivering a 5-year annualized dividend growth rate of 39.8%. Its most recent ex-dividend date was April 21, 2026.

Wall Street coverage includes 7 Strong Buy, 4 Buy, and 1 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $455.07 implies an upside of 14.5% over the last close of $397.53. For FY2026, consensus estimates project revenue of $7.64B and EPS of $9.85, indicating 9.9% EPS growth. For FY2027, 9 analysts forecast revenue of $8.27B and EPS of $11.05. Ferrari beat EPS estimates in 2 of the last 4 quarters, with its next earnings release scheduled for November 3, 2026.

This page is an AI-written research summary of Ferrari N.V. (RACE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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