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Is this Large Market Cap Stock target price reasonable for Ferrari N.V. (NYSE:RACE) ?

The company in question is, Ferrari N.V. (NYSE:RACE) currently with a stock price of 71.26 (0.95% today). The market cap for Ferrari N.V. is 13462.44, and is in the sector Consumer Goods, and Auto Manufacturers – Major industry. The target price for Ferrari N.V. is 63.93. Currently Ferrari N.V. is trading with a P/E of 31.81, and a forward P/E of 27.52. Average volume for Ferrari N.V. is 452.59 and so far today it is 874800.

Performance in the last year for Ferrari N.V. has been 61.20%. For EPS growth, Ferrari N.V. has seen a growth of 38.50%, and is looking to grow in the next year to 3.35%. More long term stats show that EPS growth has been *TBA over the last five years and could be 15.20% for the next five years. Ferrari N.V. has seen sales growth quarter over quarter at 12.20%, with EPS growth quarter over quarter at 104.50%. The 20-day simple moving average is -1.18%, with the 200-day simple moving average coming to 26.83%.

Since the IPO date for Ferrari N.V. on the 10/21/2015, Ferrari N.V. has seen performance year to date to be 22.57%. With Ferrari N.V. trading at 71.26, the dividend yield is 0.94%, and the EPS is 2.24.

So could Ferrari N.V., be undervalued? Well as said before P/E is 31.81. The PEG is 2.09, P/S is 4.09 and the P/B is at 38.94. The P/cash is 27.27, with P/free cash flow at 19.13.

Ferrari N.V. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.2. This is with long term debt/equity at 5.69, and total debt/equity at 5.69.

In terms of margins, Ferrari N.V. has a gross margin of 49.10%, an operating margin of 19.20% and a profit margin of 12.80%.Payout ratio for Ferrari N.V. is 30.10%. Return on assets come to 9.70% with return on investment coming to 19.70%.

Insider ownership for Ferrari N.V., is at *TBA and institutional ownership comes to 39.80%. Outstanding shares are at 188.92. While shares float is 124.12. The float short is currently 2.65%, and short ratio is 7.28.

Graphs: Ferrari N.V. NYSE: RACE | Thursday April 20, 2017


Ferrari N.V. NYSE: RACE




Ferrari N.V. NYSE: RACE

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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