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.

Price Performance

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. 

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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.

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