RACE Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Ferrari NV - Alpha Spread

Ferrari NV
NYSE:RACE

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Ferrari NV
NYSE:RACE
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Price: 476.06 USD 4.05%
Market Cap: 85.5B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Ferrari NV

Revenue
6.4B EUR
Cost of Revenue
-3.2B EUR
Gross Profit
3.2B EUR
Operating Expenses
-1.4B EUR
Operating Income
1.7B EUR
Other Expenses
-355.3m EUR
Net Income
1.4B EUR

Margins Comparison
Ferrari NV Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
IT
Ferrari NV
NYSE:RACE
85B USD
50%
27%
22%
US
Tesla Inc
NASDAQ:TSLA
764.1B USD
18%
8%
13%
JP
Toyota Motor Corp
TSE:7203
35.2T JPY
21%
12%
11%
CN
BYD Co Ltd
SZSE:002594
742.9B CNY
19%
6%
5%
DE
Mercedes Benz Group AG
MIL:MBG
75.3B EUR
23%
12%
10%
DE
Daimler AG
XETRA:DAI
67.5B EUR
23%
12%
10%
DE
Dr Ing hc F Porsche AG
XETRA:P911
63B EUR
29%
18%
13%
DE
Mercedes-Benz Group AG
XETRA:MBG
61.3B EUR
21%
10%
8%
DE
Volkswagen AG
XETRA:VOW
49.8B EUR
19%
7%
5%
US
General Motors Co
NYSE:GM
54.2B USD
12%
7%
6%
DE
Bayerische Motoren Werke AG
XETRA:BMW
47.8B EUR
18%
11%
7%
Country IT
Market Cap 85B USD
Gross Margin
50%
Operating Margin
27%
Net Margin
22%
Country US
Market Cap 764.1B USD
Gross Margin
18%
Operating Margin
8%
Net Margin
13%
Country JP
Market Cap 35.2T JPY
Gross Margin
21%
Operating Margin
12%
Net Margin
11%
Country CN
Market Cap 742.9B CNY
Gross Margin
19%
Operating Margin
6%
Net Margin
5%
Country DE
Market Cap 75.3B EUR
Gross Margin
23%
Operating Margin
12%
Net Margin
10%
Country DE
Market Cap 67.5B EUR
Gross Margin
23%
Operating Margin
12%
Net Margin
10%
Country DE
Market Cap 63B EUR
Gross Margin
29%
Operating Margin
18%
Net Margin
13%
Country DE
Market Cap 61.3B EUR
Gross Margin
21%
Operating Margin
10%
Net Margin
8%
Country DE
Market Cap 49.8B EUR
Gross Margin
19%
Operating Margin
7%
Net Margin
5%
Country US
Market Cap 54.2B USD
Gross Margin
12%
Operating Margin
7%
Net Margin
6%
Country DE
Market Cap 47.8B EUR
Gross Margin
18%
Operating Margin
11%
Net Margin
7%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Ferrari NV Competitors

Country Company Market Cap ROE ROA ROCE ROIC
IT
Ferrari NV
NYSE:RACE
85B USD
48%
16%
28%
22%
US
Tesla Inc
NASDAQ:TSLA
764.1B USD
21%
12%
10%
19%
JP
Toyota Motor Corp
TSE:7203
35.2T JPY
15%
6%
9%
6%
CN
BYD Co Ltd
SZSE:002594
742.9B CNY
25%
5%
18%
9%
DE
Mercedes Benz Group AG
MIL:MBG
75.3B EUR
19%
6%
11%
6%
DE
Daimler AG
XETRA:DAI
67.5B EUR
28%
6%
12%
7%
DE
Dr Ing hc F Porsche AG
XETRA:P911
63B EUR
41%
16%
31%
22%
DE
Mercedes-Benz Group AG
XETRA:MBG
61.3B EUR
14%
5%
8%
5%
DE
Volkswagen AG
XETRA:VOW
49.8B EUR
9%
2%
6%
4%
US
General Motors Co
NYSE:GM
54.2B USD
16%
4%
7%
5%
DE
Bayerische Motoren Werke AG
XETRA:BMW
47.8B EUR
12%
4%
10%
5%
Country IT
Market Cap 85B USD
ROE
48%
ROA
16%
ROCE
28%
ROIC
22%
Country US
Market Cap 764.1B USD
ROE
21%
ROA
12%
ROCE
10%
ROIC
19%
Country JP
Market Cap 35.2T JPY
ROE
15%
ROA
6%
ROCE
9%
ROIC
6%
Country CN
Market Cap 742.9B CNY
ROE
25%
ROA
5%
ROCE
18%
ROIC
9%
Country DE
Market Cap 75.3B EUR
ROE
19%
ROA
6%
ROCE
11%
ROIC
6%
Country DE
Market Cap 67.5B EUR
ROE
28%
ROA
6%
ROCE
12%
ROIC
7%
Country DE
Market Cap 63B EUR
ROE
41%
ROA
16%
ROCE
31%
ROIC
22%
Country DE
Market Cap 61.3B EUR
ROE
14%
ROA
5%
ROCE
8%
ROIC
5%
Country DE
Market Cap 49.8B EUR
ROE
9%
ROA
2%
ROCE
6%
ROIC
4%
Country US
Market Cap 54.2B USD
ROE
16%
ROA
4%
ROCE
7%
ROIC
5%
Country DE
Market Cap 47.8B EUR
ROE
12%
ROA
4%
ROCE
10%
ROIC
5%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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