Ferrari: racy returns and a sustainable moat

by Finploris
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Ferrari is among of the world’s leading luxury brands. The company is focused on the design, engineering, production and sale of luxury performance sports cars in more than 60 markets worldwide. The company also participates in the Formula 1 World Championship. Hence, those marketing and promotional activities are an important source of innovation to support the technological advancement of Ferrari.

Market Cap (in $)52.501B
Forward P/E 37.72

Ferrari’s core business is sustained by volume and mix. As of May 2021, Ferrari held in treasury more than 9.2 million common shares equal to 3.59% of the total issued share capital under the company’s equity incentive plan. Since January 1, 2019, Ferrari has purchased a total of 4.0 million own common shares. In the interim report for the three months ended March 31, 2021, Ferrari reported net revenues generated from cars and spare parts of €855 million, an increase of €67 million, or 8.5%, from €788 million for the three months ended March 31, 2020. The increase in net revenues was primarily attributable to a positive mix impact. As a result, the positive mix impact was driven by the ramp up of the SF90 Stradale, as well as the Ferrari Monza SP1 and SP2.

Dividend (in $)

In addition, overall shipments increased by 33 cars, or 1.2%. The €67 million increase in net revenues was among others composed of a €19 million increase in EMEA and an €11 million increase in Americas. Above that, net revenue generated from sponsorships, commercial agreements and brand management activities accounted for €91 million and were substantially in line with €89 million in 2020. EBIT increased by 20.9% from €220 million to €266 million in line with an improved EBIT margin of 26.3%. Shares of Ferrari climbed 403% over the past five years.

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