RACE Ferrari NV

Ferrari NV (RACE) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Looking at how effectively the company deploy capital, ROIC is 27.41%, WACC is 7.54%, and the economic spread is 19.87%. On balance, returns on invested capital exceed the cost of funding by a comfortable margin, which over time compounds favorably for long-term holders. Supporting metrics show ROE at 44.33% and ROA at 15.12%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

On valuation, the company registers trailing P/E of 40.60, forward P/E of 37.09, PEG of 3.44. The minimal trailing-to-forward compression implies limited earnings growth expectations are embedded in current prices. The PEG ratio is elevated relative to historical norms, implying the market is paying a meaningful premium for the earnings trajectory embedded in analyst estimates. A current ratio reading of 2.12 points to the company that are managing short-term obligations without apparent stress. Taken together, the multiple and liquidity picture suggests a company that is priced for a constructive outcome — but where execution against earnings estimates will be the key determinant of whether that price is justified.

Across the three margin layers, gross margin sits at 51.62%, operating margin at 29.40%, and free cash flow margin at 22.77%. Gross margins sit in a healthy range, consistent with businesses that manage input costs effectively. Operating margins are in good shape, consistent with businesses that maintain reasonable earnings conversion after overhead. At this level, free cash flow margins suggest businesses that are building financial strength alongside revenue growth. The margin profile is consistently healthy, a pattern often associated with durable competitive position and execution quality.

Two key indicators frame the near-term view: TTM revenue growth of 8.40% a signal of steady demand without the volatility of high-growth names, while the estimated 12-month price change of 22.95%, where the target distribution indicates incremental upside rather than outsized repricing. The near-term return case is built on whether reported trends and analyst projections can remain close enough to make current prices look justified. Whether the setup resolves positively or negatively will depend as much on the macro backdrop as on the capacity of the company to deliver against current estimates. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Balancing the strengths against the areas of uncertainty, the weight of evidence favors an optimistic view with appropriate risk awareness.

This assessment is based solely on the quantitative metrics presented above and does not constitute financial advice. Investors should consider their own risk tolerance and conduct independent research before making investment decisions.