Pursuant to the recently observed sell-off, the timing for long positions in Ferrari N.V. to anticipate a technical rebound, at the very least, appears attractive.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The share is getting closer to its long-term support in weekly data, at USD 120.63, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● The company returns high margins, thereby supporting business profitability.
● Historically, the company has been releasing figures that are above expectations.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
Weaknesses
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With an expected P/E ratio at 33.85 and 29.63 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.
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Ferrari N.V. is a holding company organized around 3 areas of activity:
- manufacturing and sale of luxury sports vehicles (85.8% of net sales): 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale, 458 Speciale A, California T and Ferrari FF. The group also provides spare parts;
- manufacturing and sale of car engines (2.1%): Maseratti brand;
- other (12.1%): sponsorship activity, provision of financial services, etc.
Net sales are distributed geographically as follows: Italy (7.4%), the United Kingdom (10.5%), Germany (8.3%), Europe/Middle East/Africa (21.9%), the United States (25.7%), Americas (3.8%), China/Hong Kong/Taiwan (9.8%), Asia/Pacific and Australia (12.6%).