Ferrari NV

Ferrari (RACE) is one of the most prestigious brands in the automobile industry. The Italian racing and sports car manufacturer entered the business in 1947.

For the last three years, Ferrari (RACE) has been reporting gradual progress in EBITDA (earnings before interest, tax, depreciation, and amortization).

Last week, Ferrari stock (RACE) continued to trade positively, rising 9.2% to $148.90.

Since its first day of trading on October 21 on the NYSE (New York Stock Exchange), Ferrari (RACE) has fallen by ~10% to $46.62.

Stable demand and strong brand image have kept Ferrari (RACE) moving forward, regardless of adverse global economic conditions.

By focusing on extraordinary vehicle design and exclusivity, Ferrari is able to sell luxury cars with high-profit margins to end consumers.

Ferrari spends extravagantly on research and development to stay ahead of its peers and to keep its products unique.

On March 8, 2018, GM’s EV-to-EBITDA was 7.2x, much lower than its direct competitor Ford’s multiple of 12.8x.

Tesla (TSLA) has been on a rising spree since its earnings. In October, Tesla stock surged by 31%. The stock rose on the back of third-quarter profits.

Ferrari (RACE) is considered a symbol of power, speed, and passion by many motorsport enthusiasts. There are only a few key market players in the luxury supercar segment.

Ferrari (RACE) launched its ambitious first hybrid, LaFerrari, in 2013.

In October 2014, Fiat Chrysler Automobiles (FCAU) announced its intentions to spin off Ferrari (RACE) as an independent entity.

Tesla stock had quite a year in 2019. Tesla went from loss to profit, and from lower deliveries to record deliveries. What lies ahead for 2020?

Automakers have effectively split in their support of a particular set of emission regulations, pitting large automakers Ford and GM against one another.

Auto industry stocks fell in the first week of October. Weaker third-quarter sales, lower equity markets, and recession fears hammered the stocks.

The short interest in Ford (F) stock has risen from 3.08% of its outstanding shares on July 1 to the current level of 3.14%.

Changes in Ford’s China leadership are in the wings, as Nigel Harris plans to retire after 34 years. Steven Armstrong is slated to succeed Harris.

Vanguard has the highest institutional holdings in Ford. According to Reuters, Vanguard bought 3.95 million shares in the second quarter.

Auto stocks and the US equity market slumped with fresh fears of an economic recession. Today, the Dow Jones Industrial Average fell more than 600 points.

This morning, CEO Elon Musk, in a post on Tesla’s official blog, announced that Tesla is laying off 7% of its full-time employees.

Early this morning, before the market opened, Musk revealed that TSLA is reducing its full-time workforce by 7%.

At 6:46 AM EST on January 18, Tesla (TSLA) shares fell 8.4% in the pre-market session from the previous day’s closing.

In the third quarter, Ferrari (RACE) reported net revenue of 838 million euros, or ~$956 million.

On July 25, Ferrari’s (RACE) forward EV-to-EBITDA multiple was 19.0x.

As of July 18, 2016, Ferrari’s (RACE) forward EV-to-EBITDA multiple is 11.1x. Ferrari’s forward PE (price-to-earnings) multiple is trading at 20.2x.

Toyota (TM) has become one of the top ten biggest advertising spenders in the US. The company spent 435 billion Japanese yen, or 1.6% of its revenues, on advertising and sales promotions during fiscal 2015.

In fiscal 2016 (April 1, 2015–March 31, 2016), Toyota spent ~3.7% of its revenue, or about 1,055 billion Japanese yen, on its R&D program for its vehicles.

Ferrari is expected to witness high growth in earnings with relatively lower leverage than the industry average. This could be a reason why Ferrari has a high forward price-to-earnings multiple.

In an annual study conducted in 2013 by Brand Finance, Ferrari stood as the world’s most popular and instantly recognizable global brand.

Ferrari (RACE) owns two manufacturing units in Italy: one in Maranello and one in Modena.