Stock Spotlight: Ferrari NV (NYSE:RACE)

About Ferrari NV

Ferrari N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers sports, track, one-off, and road cars, as well as supercars. It also provides spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, the company operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Further, it provides direct or indirect finance and leasing services; range of financial and ancillary services; special financing arrangements; and operates franchised and owned Ferrari stores. The company was founded in 1947 and is headquartered in Maranello, Italy.

Source:EODHD

Key Stats

Source: EODHD. Data as of 20/02/26.

Growth Potential

• Truly an ultra-luxury brand with management focusing on value over growth (i.e. flooding the market with Ferraris). Consequently, RACE enjoys exceptional pricing power, and we would argue limited exposure to economic downturns/affordability.
• Strong track record of growth (since listing has achieved 2x EBITDA growth, +970bps EBITDA margin expansion and ~EUR3bn cumulative industrial FCF).
• Sales momentum driven by new vehicle launches including the move into full electric vehicles. Margin will be driven by price and mix impacts (e.g., personalization).
• Underpenetrated client base opportunity [of ~26 million HNWs, the Company has penetrated ~0.2% to date].
• Strong cash flow generation and solid shareholder returns (expected to deliver ~EUR3.5bn of dividends from 2027-31, with payout increased +500bps to 40% of adjusted net income and buyback authorization increased by EUR3.5bn for 2026-30).
• Strong balance sheet with declining leverage and ample liquidity, which provides the Company flexibility. 
  

Key Risks

• Adverse currency movements, especially EUR strength against the U.S. dollar (USD), Chinese Renminbi (RMB) and Japanese Yen (JPY).
• Increased competition from existing luxury vehicle manufacturers (Lamborghini, Mclaren, Aston Martin) and new emerging brands (Koenigsegg).
• Changes to emissions/fuel efficiency policy which adversely impacts demand.
• Value destructive acquisition of brand(s).
• Less than expected traction for the Company’s upcoming EVs.
• Significant change at the senior management level (divisional CEOs
• Capex blowout in regard to its EV ambitions.