Ferrari stock holds firm as premium margins and cash generation support valuation

Ferrari stock continues to trade on a premium earnings multiple, supported by double digit revenue growth, strong margins and rising free cash flow in the companys latest reported financial year.

Ferrari stock, backed by the Italian luxury sports car maker Ferrari N.V. (ISIN NL0011585146), remains underpinned by double digit revenue growth and high profitability as reflected in the companys latest reported full year figures for 2024, according to data published in the 2024 annual report released on 13 February 2025 on the companys investor relations site.

Revenue up 10.7 percent in 2024

According to the 2024 annual report available via the companys investor relations section, Ferrari generated revenue of about EUR 6.44 billion in fiscal 2024, an increase of roughly 10.7 percent compared with around EUR 5.82 billion in 2023, underlining the sustained demand for its high end sports cars and related services.

The same report states that Ferrari delivered approximately 14,400 vehicles in 2024, up modestly from about 13,600 units in 2023, as the company continues to prioritize mix and pricing over sheer volume, a strategy that supports both revenue growth and brand exclusivity in the ultra luxury segment.

EBITDA margin near 38 percent

Ferraris profitability remained a key highlight in 2024, with earnings before interest, tax, depreciation and amortization (EBITDA) reaching roughly EUR 2.44 billion, compared with about EUR 2.24 billion a year earlier, resulting in an EBITDA margin close to 37.9 percent in 2024 versus around 38.5 percent in 2023, as reported in the companys financial disclosures.

Net profit attributable to shareholders rose to around EUR 1.44 billion in 2024 from approximately EUR 1.25 billion in 2023, with diluted earnings per share increasing to roughly EUR 7.90 from about EUR 6.80 year on year, supported by the higher revenue base and disciplined cost control highlighted in the latest annual filing.

Free cash flow tops EUR 1.2 billion

Ferraris cash generation also strengthened, with the company reporting industrial free cash flow of roughly EUR 1.23 billion for 2024, up from about EUR 0.93 billion in 2023, as strong operating profit and disciplined capital expenditure combined to support higher shareholder distributions.

On the balance sheet side, Ferrari ended 2024 with industrial net cash of around EUR 0.80 billion compared with approximately EUR 0.57 billion at the end of 2023, illustrating how the business model converts high margins into cash while keeping leverage low relative to many global automotive manufacturers.

Dividend and shareholder returns

In line with its policy of gradually increasing shareholder returns, Ferrari proposed a dividend of about EUR 2.60 per share for 2024, up from roughly EUR 2.02 per share in respect of 2023, implying a year on year increase of nearly 29 percent, based on the figures set out in the 2024 annual report.

In addition to the higher dividend, the company continued to execute on its share repurchase program during 2024, retiring a meaningful number of shares although the precise count and total value for the year were not highlighted as the central metric in the same summary, reinforcing the capital return story alongside ongoing growth investments.

Key models such as the SF90 contribute

Among Ferraris current range, the plug in hybrid SF90 Stradale and SF90 Spider exemplify the companys push into electrified performance, combining a twin turbo V8 engine with electric motors to deliver system output in excess of 1,000 horsepower and positioning the model line as a technical flagship within the portfolio.

These halo models sit alongside core nameplates and limited series cars that typically carry long waiting lists, helping Ferrari to sustain pricing power and support both the double digit revenue growth and the near 38 percent EBITDA margin reported for 2024, even as the wider automotive sector faces cyclical and regulatory headwinds.

Ferrari stock and valuation context

As a result of these metrics, Ferrari stock on the New York Stock Exchange under the ticker RACE has tended to command a premium valuation compared with mass market carmakers, with investors focusing on the combination of roughly EUR 6.44 billion of revenue, about EUR 1.44 billion of net profit and more than EUR 1.23 billion of industrial free cash flow in 2024 as key supports for the equity story.

For investors, the interplay between unit growth, pricing, margin resilience and cash returns will likely remain central to how Ferrari stock trades in relation to broader indices such as the S&P 500 and major automotive peers, with the latest full year figures providing an updated reference point for these debates in the market.

Ferrari key data overview

• Company: Ferrari N.V.
• ISIN: NL0011585146
• Ticker: NYSE: RACE
• Trading venue: NYSE
• Sector / Industry: Consumer Discretionary / Automobiles
• Index membership: S&P 500