Is Ferrari N.V. (RACE) A Good Stock To Buy Now?

Core Thesis - Ferrari N.V. is positioned for strong long-term growth, supported by a disciplined approach to exclusivity and a diversified product portfolio, making it an attractive investment opportunity for long-term investors seeking ultra-premium exposure [1][8]. Financial Performance - As of March 3rd, Ferrari's share price was $361.13, with trailing and forward P/E ratios of 34.26 and 31.55 respectively [1]. - In 2025, Ferrari achieved €2.1 billion in EBIT, reflecting a 12% increase, and met its 2026 targets a year ahead of schedule [3]. - Revenues reached €7,146 million, driven by strong car and spare parts sales, alongside a 22% increase in sponsorship, commercial, and brand revenues [5]. - The company maintained a robust EBIT margin of 29.5% and an EBITDA of €2,772 million, which corresponds to a 38.8% margin [6]. Delivery and Production Strategy - Ferrari delivered 13,640 vehicles, representing a modest 0.8% decline, emphasizing its strategy of prioritizing exclusivity and long-term value over short-term growth [4]. - The company launched six new models, including ICE and hybrid technologies, contributing to a diversified and future-ready portfolio [4]. Cash Flow and Financial Health - Industrial free cash flow reached €1,538 million, up 50%, with net industrial debt at just €32 million after significant dividends and buybacks, indicating strong financial health [7]. - The order book extends into late 2027, showcasing sustained demand and brand exclusivity [6]. Future Projections - Ferrari projects revenues of €7.5 billion, a 39% EBITDA margin, and €1.5 billion in industrial free cash flow for 2026, supported by product mix improvements and new model introductions, including the Ferrari Luce electric sports car [8].