LTN’s Feature Stock of the Day: Ferrari NV (NYSE:RACE)

LTN’s Feature Stock of the Day: Ferrari NV (NYSE:RACE)

LTN’s Stock of the Day: Ferrari NV (NYSE:RACE)

$RACE, $FCAU

LTN’s stock of the day is Ferrari NV, (NYSE: RACE), with a market cap of US$11212.49-B.

Italy and the world’s premier automaker, Ferrari, is in the industry Auto Manufacturers, Major and Consumer Goods sectors.

Once a unit of Fiat-Chrysler (NYSE:FCAU) Ferrari shares were 1st put on the stock market US and Milan markets in its IPO of 15 October 2015

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 58.98  10 January 2017 0.70 58.98 59.18 58.74 345,400
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.37) Neutral (0.04) Bullish (0.40) Very Bullish (0.67)

It has been an interesting month for RACE, with volatility for the week at 1.17% and for the month at 1.09%.

The 20-Day SMA is 5.93%, and the 200-Day SMA average at 22.95%.

The 52 wk trading range high-1.70% – 88.28%.

Performance wise, this week performance is 0.24%.

Looking long-term, this month performance is 2.34%, and for the Quarter it has been 8.95%.

For 2-H of Y 2016, Ferrari N.V. has seen performance at 38.66%.

YTD it is 0.24%

The Big Q: Does my target price of 56.69 seem reasonable in here?

Note: I called that target in July of Y 2016, price at 40.00/share

Using these values we can determine whether Ferrari NV is undervalued and see if the target price does seem reasonable, see the analysis below:

The P/E Ratio is 30.35, combined with a forward P/E of 25.69.

The following values ideally want to be as low as possible; PEG is 1.73, P/S is 3.51, P/B is 45.18, P/cash is 21.34 and finally P/Free cash flow is 28.24.

With a current trading price of 58.86, the company has a dividend yield of 0.88%, representing a payout ratio of 0.00%.

The EPS is at 1.92, and growth for the next year is projected to reach 10.58% after being 10.10% for Y 2016.

For the past 5 years the EPS growth is *TBD, and for the next 5 years it is estimated to be 17.50%. EPS growth Quarter over Quarter is 20.10%.

Ferrari NV has seen a sales growth Q-Q of 8.40%, with sales growth of the past 5 years coming to *TBD.

Investors has also seen a return of equity of 342.90%. The management has seen a return of assets of 8.30%, and return of investment of 13.40%. Long term debt is 9.6, with total debt totaling 0.

Ferrari NV’s ability to meet these debts is for current ratio of 1.6 and a quick ratio of 1.4.

The gross profit margin is 48.40%, with the operating profit margin at 17.40%. A healthy profit margin of 11.30%. Insider ownership is at a value of *TBD, while institutions brings a the ownership of institutions to 60.10%.

Shares outstanding at the moment is 192.39-M, with the number of shares float at 168.55-M.

The average volume is expected is high for a high market cap stock and the average volume is 449.04, with the volume today at 345.4-K. The related volume is 0.64. The daily high Tuesday has been -1.70% and the low, 16.81%. The GAP is 1.25%.

Ferrari NV is a Tier 1 luxury brand and perhaps the most recognized brand in the automotive world, in a growing and optimistic world economy the P/E Ratio could see 40X. Do the math.

Note: a successfull Formula One racing season could drive the price higher.

*TBD-to be determined.

Stay tuned…

 

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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