馃殬 FERRARI: ANALYSIS 馃殬
Copyright: Joel Padilla 2023
Ferrari [RACE] is a well-known company that has 4 ways of earning income: car and engine sales, maintenance services, merchandising, and licenses. The relevant is the mix of luxury company, with the cyclical component.
In general terms, its margins are very good:
- Gross margin (average): ± 46%
- Operative margin (average): ± 24%
- EBITDA margin (average): ± 29%
- Net margin (average): ± 19%
If your ROIC (average) is ±16.5%, EPS was ±$15.48, and a PER 40 (average) is set as a baseline, its potential forward price could be between:
- Pessimistic ± $182 USD
- Neutral ± $218 USD
- Optimistic ± $254 USD
In other view, if it is set an EBITDA increase of 5%, a Debt Net increase of 5% and shares outstanding decrease of 1%, the neutral price will be at ± $237 USD [EV/EBITDA 25].
The pros: his clients are upper class (resilient in the face of possible crisis), it has a strong public image, healthy net debt and makes buys back shares. The cons: its OPEX has slightly increased and the CAPEX has felt, it has a cyclical component and could be overvalued, not counting a possible recessionary framework.
The best analysis is yours!
In general terms, its margins are very good:
- Gross margin (average): ± 46%
- Operative margin (average): ± 24%
- EBITDA margin (average): ± 29%
- Net margin (average): ± 19%
If your ROIC (average) is ±16.5%, EPS was ±$15.48, and a PER 40 (average) is set as a baseline, its potential forward price could be between:
- Pessimistic ± $182 USD
- Neutral ± $218 USD
- Optimistic ± $254 USD
In other view, if it is set an EBITDA increase of 5%, a Debt Net increase of 5% and shares outstanding decrease of 1%, the neutral price will be at ± $237 USD [EV/EBITDA 25].
The pros: his clients are upper class (resilient in the face of possible crisis), it has a strong public image, healthy net debt and makes buys back shares. The cons: its OPEX has slightly increased and the CAPEX has felt, it has a cyclical component and could be overvalued, not counting a possible recessionary framework.
The best analysis is yours!
Mtro. J. Joel Padilla
Copyright: Joel Padilla 2023
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