COMPANY PROFILE

Ferrari is among the world’s leading luxury brands. The activities of Ferrari N.V. and its subsidiaries are focused on the design, engineering, production and sale of luxury performance sports cars. The cars are designed, engineered and produced in Maranello and Modena, Italy and sold in more than 60 markets worldwide through a network of 167 authorized dealers operating 188 points of sale. The Ferrari brand is licensed to a selected number of producers and retailers of luxury and lifestyle goods, with Ferrari branded merchandise also sold through a network of 19 Ferrari-owned stores and 22 franchised stores (including 11 Ferrari Store Junior), as well as on the Group’s website. To facilitate the sale of new and pre-owned cars, the Group provides various forms of financing to clients and dealers, including through cooperation and other agreements. Ferrari also participates in the Formula 1 World Championship through Scuderia Ferrari. The activities of Scuderia Ferrari are the core element of Ferrari marketing and promotional activities and an important source of innovation supporting the technological advancement of Ferrari sport and street cars.

The Ferrari logo with its iconic Prancing Horse symbolizes Italian luxury, exclusivity, performance, design and quality the world over. Ferrari is probably one of the most recognized brands around the world. Pure sex appeal is what a Ferrari is about. This aspirational brand builds the greatest vanity product ever: A super car that costs upward of $300k per car. Each Ferrari car is unique. But as a whole, they form a single family built thanks to a long expertise in engineering and driving performance. The design of each Ferrari vehicle draws inspiration from the Scuderia Ferrari in Formula 1, Gran Turismo or Sports prototypes. All our sports cars models have the same start line—a passion for competition that has inspired the inimitable technique and design Ferrari calls its own.

Style Factor Benefits

From a factor scoring perspective versus the other 199 brands in the brands index, here’s where Ferrari scores well as of 9/17/19:

• 93% high margins versus the industry

• 85% strong price momentum

• 81% low volatility equity

• 98% high expected 3YR dividend growth

• 92% low downside beta

• 75% high ROIC

• 80% strong economic moat metrics

• 79% high sales surprise last quarter

1/3/2022 Update

Like the car itself, the stock is expensive and will always be expensive relative to other car companies. Get over it. Ferrari is not just another car company. Margins are high, volume is low (but increasing gently) creating some serious scarcity value and these amazing cars have cult-status. I used to know a guy who bought a new Ferrari every 9 months and when he sold, he never lost money on the car. Now that's real value. As the company continues to ramp up volume, add a new SUV rolls out plus getting closer to their first EV car, this expensive stock has room to get more expensive. The Ferrari client is as recession proof as any could be. When demand for a sexy product outstrips supply, you likely have a winning investment. Yes, there’s competition for the ultra-luxury: Lamborghini, Bentley, Maserati, Rolls-Royce. For my money though, a Ferrari 488 GTB or an 812 Superfast would be my choice. Here’s the page with all the cars, bring a tissue for salivating. http://corporate.ferrari.com/en/about-us/product-range I like the stock, would prefer it pullback after strong earnings recently but sometimes the market doesn’t let you in on a great story. Buy this amazing brand on dips. Technically it looks quite strong currently. I know of no other aspirational brand with more loyalty.