Ferrari shares: Price analysis before buying or selling

Can I receive dividends when I buy Ferrari shares?

Yes

What is Ferrari's capitalisation?

Consult the capitalisation

ISIN code: NL0011585146

Ticker: BIT: RACE

Index or market: FTSE MIB

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Elements to consider before selling or buying Ferrari shares

Analysis N°1

Firstly, we would monitor efforts made by this brand to take position in the hybrid vehicle market or use advanced technologies as well as the new vehicle models already announced.

Analysis N°2

In the same way, we would also strongly suggest you monitor how Ferrari uses owners’ social networks in order to find new clients.

Analysis N°3

You should also take into account the efforts made by Ferrari to extend its distribution network and range of services to generate an increase in income.

Analysis N°4

Any changes in the customs policies practised by certain importing countries relating to Ferrari will of course be of major importance for this group’s profitability.

Analysis N°5

Finally, the top of the range sports vehicles sector and its respective indicators should be followed closely. It is particularly recommended to complete a comprehensive study of the competition in this sector and movements in the market parts of each company as well as the launch of new vehicles.

Analysis before buying or selling Ferrari shares

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General presentation of Ferrari

Before you invest in the Ferrari share price or start analysing the stock market price, you should of course ensure that you have the necessary knowledge to do so. This is what we are offering you right now by giving you a detailed presentation of the company, its activities and the breakdown of its sources of income:

The Ferrari NV group is an Italian company that operates in the car manufacturing sector. More specifically, it is a holding company specialising in the design, manufacture and sale of sports and luxury vehicles.

In order to better understand the activities of the Ferrari group, they can be divided into different divisions according to the share of turnover they generate and in this way:

First of all, the activities of construction and sale of sports and luxury vehicles represent the major part of the group's income since they generate more than 81.9% of the company's turnover. These activities concern the 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12berlinetta, 458 Speciale, 458 Speciale A, California T and California FF brands. In addition to these vehicles, the group also sells spare parts.
In second place are the activities relating to financial services, which represent 11.3% of the group's turnover.
Next come the activities of manufacturing and selling engines with the Maseratti brand, which generate 4.4% of Ferrari's turnover.
Finally, the remaining 2.4% of turnover comes from ancillary activities.

It is also interesting to know the distribution of the Ferrari group's revenues from a geographical point of view. The group achieves 10.4% of its turnover in Italy, 46.8% in Europe, the Middle East and Africa, 24.8% in the Americas, 12.5% in Asia Pacific and Australia and 5.5% in China, Hong Kong and Taiwan.

Photo credits: David Long - Flickr

The major competitors of Ferrari

Now that you are more familiar with Ferrari and its various activities, we suggest you find out more about its economic and sectoral environment. In order to effectively analyse this value, it is necessary to know the main competitors of this group in its sector of activity. Here is a quick overview that will help you in this task:

Rolls Royce

First of all, we will take into account the competition from Rolls Royce Motor Cars which is a British car manufacturer specialising in luxury cars. It was created in 1998 through the takeover of Rolls Royce Motors by the German manufacturer BMW. The company is currently based in Goodwood, West Sussex, UK, close to the historic Goodwood racetrack.

Bentley

Of course, the Bentley Group is also a serious competitor to Ferrari. It is a car manufacturer specialising in luxury and racing vehicles and is based in Crewe, UK. The company was founded in 1919 by Walter Owen Bentley. Since 1998, Bentley has been part of the German Volkswagen Group.

Lamborghini

Still among the great competitors of the Ferrari group, we find the Lamborghini company which is an Italian car manufacturer known worldwide. The company was founded in 1963 by the industrialist Ferrucio Lamborghini and is based in Sant'Agata Bolognese. In its early years, the company specialised in the construction of agricultural tractors to meet the growing demand in Italy as the country rebuilt after the devastation of war. Today, the group specialises in luxury and sports cars.

Maserati

As for Ferrari's main competitor, the Maserati group, an Italian car manufacturer, should be followed with the utmost attention. This group is part of the Stellantis group, which was formed by the merger of PSA and Fiat Chrysler and specialises in luxury cars, sports cars and racing cars. It was founded in 1914 by the Maserati brothers and its symbol, a trident, is directly inspired by the Neptune fountain in Bologna.

Aston Martin

The last competitor to Ferrari is the British car manufacturer Aston Martin, which specialises in luxury cars and racing cars. It was founded in 1913 by Lionel Martin and Robert Bamford and is based in Gaydon, Warwickshire. Since 2007 it has been a subsidiary of the Prodrive Group. Its name comes from the creation of a car by Lionel Martin who won an Aston Clinton race in 1914. The winged emblem was created in 1932 by Sammy Davis, a former Bentley driver. It takes its origin from the Egyptian god Khepri who is symbolised by a scarab.

The major partners of Ferrari

Bridgestone

In 2008, through its F1 racing stable, the Ferrari Group collaborated with the Bridgestone Group to develop tyres and find their best configuration for racing in the Italian Grand Prix.

Shell

Ferrari is also a long term partner of Shell, with the Formula 1 car racing sponsoring but also for research and innovation in which area the two companies have collaborated for numerous years.

Puma

In 2015 the Ferrari Group also celebrated its 10 year partnership with the Puma group and as part of these celebrations produced 4 special ranges of shoes on the racing car theme, directly inspired by the horse brand.

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The factors in favour of a rise in the Ferrari share price:

Firstly, it should be remembered that the Ferrari brand has a long and distinguished history. It boasts a certain heritage and renown in its activity sector which represents a major strength nowadays. In fact the value of the Ferrari brand is one of the strongest in this sector given that its name is considered by the general public as synonymous with quality and excellence.

In fact, another strong point of the Ferrari Group is its strong position in the racing car sector. Due to its significant position in major championships and international competitions Ferrari again reinforces its visibility worldwide and thereby increases the trust of consumers and tempting automobile sports enthusiasts. This also enables Ferrari to demonstrate its aptitude for technological innovations and superior performance.

It should be noted that the innovative abilities of Ferrari are also a strong point of this company that manages a top rate design service and invests heavily in research and development to continue advancing in its engine design and luxury vehicles. The purchasers of these vehicles particularly appreciate the efforts made by this brand to equip its vehicles with a very light alloy that enables an enhanced manoeuvrability and a more effective acceleration than the majority of its competitors.

Ferrari has also recently invested heavily in terms of energy in the implementation of a programme dedicated to second hand sales. The company is no longer satisfied to simply sell its new made to order vehicles and now seeks to serve a wider range of clients which will of course lead to an increase in profits.

Another advantage of this company is related to the relatively small amount spent on marketing and advertising. Due to its global renown the brand remains a source of inspiration and is one of the most sought after throughout the world. Ferrari thereby achieves significant savings in terms of communications.

Finally, we would also note that the Ferrari group is not simply satisfied with manufacturing and selling sports and luxury vehicles, it also offers a number of highly lucrative associated products such as perfumes, clothing and miniature replicas of its vehicles.

The factors in favour of a drop in the Ferrari share price:

Now that you know the major strengths of the Ferrari Group we now conclude with details of its principal weaknesses that will enable you to moderate your judgement when analysing this asset.

Firstly we note that the customs policies of certain countries create significant setbacks to Ferrari sales in certain areas worldwide. The complex import procedures for these vehicles tend to lengthen the process which can discourage certain buyers.

Ferrari also needs to meet the increasingly stringent requests from its clients as the group is currently unable to always satisfy their requirements.

To conclude, the competition remains a significant negative point for this company with competitors continuing to increase their efforts to take over parts of its market share.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

When were Ferrari shares introduced onto the stock markets?

It was in January 2016 that Ferrari shares were introduced onto the stock markets at the price of €43 per share. The shareholders of the mother company, Fiat Chrysler, received one Ferrari share for each 10 shares they held. A month later the share price dropped to €30. However, since then this share price has gained a lot of ground and in less than a year notably achieved a rise to €93 with a share capital of 18.1 billion Euros.

Where can you find Ferrari shares on the stock markets?

If you wish to speculate on Ferrari Group shares there are certain stock market placement products that exist that enable you to acquire them in order to hold them over the long term and receive the dividends. However you can also trade in them without actually physically purchasing them by using an online trading platform through which you can access Contracts for the Difference or CFD contracts for these shares.

Which technical indicators should you use for the Ferrari share price?

To complete a comprehensive technical analysis of the Ferrari share price you should use the volatility indicators and the returns indicators or trend strength indicators. These notably include the pivot points and the technical support and resistance levels. The latter in fact indicate the probability of a continuance of the current trend when they are broken through and a reversal when they hold.

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Analysis before buying or selling Ferrari shares