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