Ferrari NV
Ferrari maintains a strong liquidity position with €1.47 billion in cash and equivalents, but its debt-to-equity ratio of 0.74 suggests moderate leverage. The company's free cash flow of €788.56 million supports its capital structure, though its net cash position is negative after subtracting total debt [doc:HA-latest]. Profitability metrics are robust, with a return on equity of 40.87% and a return on assets of 16.59%, both exceeding the typical benchmarks for the automotive industry. Ferrari's operating income of €2.11 billion and net income of €1.60 billion reflect strong performance in a competitive market [doc:HA-latest]. The company's revenue is distributed across four regions: EMEA, Americas, Greater China, and Rest of APAC. While the input data does not specify exact revenue concentrations, Ferrari's global presence through a network of authorized dealers indicates a diversified geographic exposure [doc:HA-latest]. Ferrari's growth trajectory is supported by its strong financial performance and brand prestige. Analysts project a mean price target of €373.73, with a median of €370.50, indicating positive sentiment. The company's revenue history and outlook suggest continued growth, though specific numeric deltas for the current and next fiscal years are not provided in the input data [doc:]. Risk factors include moderate liquidity risk and the potential for dilution, though the latter is currently assessed as low. The company's capital structure and financial health are generally strong, but the negative net cash position after debt is a key flag to monitor [doc:HA-latest]. Recent events include strong analyst recommendations, with 4 strong-buy, 9 buy, and 6 hold ratings. These reflect confidence in Ferrari's brand strength and financial performance. No specific recent filings or transcripts are detailed in the input data [doc:].
Business. Ferrari NV designs, manufactures, and retails high-performance sports cars and offers financing services through Ferrari Financial Services, operating in over 60 markets worldwide [doc:HA-latest].
Classification. Ferrari is classified under the industry "Auto & Truck Manufacturers" within the business sector "Automobiles & Auto Parts" and economic sector "Consumer Cyclicals," with a confidence level of 0.92 [doc:verified market data].
- Ferrari demonstrates strong profitability with a return on equity of 40.87% and a return on assets of 16.59%.
- The company's liquidity is supported by €1.47 billion in cash and equivalents, though its net cash position is negative after subtracting total debt.
- Analysts have a positive outlook, with a mean price target of €373.73 and a median of €370.50.
- Ferrari's global presence through authorized dealers suggests a diversified geographic exposure.
- The company's risk profile includes moderate liquidity risk and low dilution potential.
- # RATIONALES
- **margin_outlook_rationale**: Ferrari's strong gross profit of €3.69 billion and operating income of €2.11 billion indicate a positive margin outlook driven by premium pricing and brand strength.
- **rd_outlook_rationale**: The company's focus on limited series and one-off cars suggests ongoing investment in R&D to maintain its competitive edge in the luxury sports car market.
- Net cash is negative after subtracting total debt.