Comparing Ferrari’s Profit Per Unit to Other Auto Makers

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Italian luxury auto maker Ferrari NV (RACE) is the most profitable automaker in the world. In 2023, the company shipped out just 13,663 vehicles. Total revenue in that year was 5.97 billion Euros with a profit of 1.257 billion Euros. According to industry analyst Felipe Munoz, the operating profit for each car was an astonishing 117,927 Euros. Ferrari’s net profit margin in 2023 was 21.42%.

Here is a breakdown of operating profit per unit of other automakers as calculated by Felipo Munoz of Car Expert of Australia:

Note: The figures below are in Australian $s.

ManufacturerUnits sold (global)Profits per unit  (approx. AUD)
Ferrari13,663$192,221
Porsche320,221$37,078
Jaguar Land Rover (JLR)420,584$13,871
BMW (incl. Mini)2,253,835$11,793
Mercedes-Benz2,043,800$11,395
Tesla1,808,581$7249
Stellantis6,175,000$5906
Subaru912,452$4661
Isuzu770,000$4605
Toyota (incl. Lexus, Daihatsu, Hino)11,230,000$4530
Kia3,085,771$4283
Volvo708,716$4117
Hyundai4,216,680$4083
Volkswagen Group (incl. Porsche, Audi, Skoda)9,240,000$3981
Honda3,700,000$2892
General Motors6,200,000$2765
BYD3,024,417$2618
Mitsubishi626,500$2608
Mazda1,244,613$1954
Ford4,400,000$1823
Renault1,548,748$1812
Nissan3,374,271$1773
Suzuki213,320$1463
GWM1,230,000$462
Aston Martin6620-$31,554

Source: Ferrari’s profit per vehicle puts every other brand in the shade, Car Expert

The below cool infographic shows how many units other auto manufacturers have to sell to beat Ferrari’s profit per unit:

Click to enlarge

Source: @MichaelAArouet via syz Group

Ferrari listed its stock on the NYSE in Oct, 2015. Since then the stock has soared by over 638% as the chart shows below:

Source: Google Finance

The following chart shows the 5-year returns:

Source: Google Finance

Currently Ferrari has a market cap of $78 billion. This is higher than the market caps of Stellantis N.V(STLA) and General Motors Co (GM).

Investors who got in on the IPO or even picked up the stock in the past few years have enjoyed excellent returns.

Disclosure: No positions

India’s Sensex Hits A New All-Time Record High

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India’s Sensex is on a roll this year. The index is up by over 4% so far this year. Last week it reached an all-time high of 75,636 before closing at 75,410 on Friday. This is indeed amazing. The Sensex reached 10,000 in 2017. Since then it has crossed peak after peak. It reached 25,000 in 2014 and crossed 50,000 in 2021 on the back of strong recovery from the depths of the Covid-19 pandemic.

Currently India is in the midst of a national election and the results are expected on Tuesday, June 4th. It should be interesting to watch how the Sensex reacts and where it stands by the end of the year.

The following chart shows the YTD return of the Sensex:

Click to enlarge

The following chart shows the 5-year return of the Sensex:

Click to enlarge

Source: Google Finance

With the election results looming on the horizon and the market at record high, investors looking to invest in Indian equities can wait for the right opportunity.

For additional data on Sensex annual returns and a list of Sensex return charts click here.

Related ETFs and ETNs:

  • WisdomTree India Earnings (EPI)
  • The iShares MSCI India ETF (INDA)
  • PowerShares India (PIN)

Disclosure: No positions

EU Visa Agreements with Non-EU Countries: Graphic

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A Schengen visa is required for non-Europeans to travel to the EU or the Schengen area countries. However the EU has visa agreements with many non-EU countries for citizens of those countries to travel to the EU without a visa. While most developed countries have this type of visa-free travel between them, I was surprised to find that the EU allows visa-free travel from many developing countries as well. For example citizens of Brazil, can travel to the EU without a visa for short-stays like for tourism purposes. In fact, most of the countries in Latin and South America have visa-free travel agreements with the EU as the graphic shows below. These agreements are reciprocal in the sense that citizens of the respective EU country can also visit the other non-EU country visa-free. So EU citizens can visit Brazil visa-free.

Click to enlarge

Source: European Council and the Council of the EU

In the Middle East, UAE citizens can travel to the EU visa-free. Same goes for Malaysian citizens also.

One question that comes to mind is if Mexicans and other South Americans can go to the EU without a visa, why are they going there and stay there illegally instead of flooding into the US. Spain would be an obvious choice for Spanish-speaking countries due to the language and historical connections.

The Export and Import Partner Countries of India: Chart

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India has the largest population in the world with a population of over 1.4 billion in 2022. In terms of size of the economy, the country is the fifth largest in the world. This year the GDP is project to cross $3.9 Trillion putting India behind Japan. From a trading partners perspective, the largest export destinations for Indian products and services are the US and the EU followed by the UAE. The UK accounts for just 2.2% of Indian exports based on 2022 data.

The following chart shows the export and import partners of India as of 2022:

Click to enlarge

Source: The demographic wave: The tide is going out, Franklin Templeton Institute

China is the largest import partner of India followed by the EU, UAE and the US. The Middle Eastern countries of the UAE, Saudi Arabia are among the top import source countries for India due to oil and natural gas imports. Russia is becoming a major exporter of crude oil to India since it is selling oil at below market prices to India. According to Reuters, India imported 1.37 million barrels day (bpd) in 2023/24 which was up by 57% from the previous year.

Apple: The King of Buybacks

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Apple(AAPL) is the world’s largest company in terms of market capitalization. As of Friday, the market cap stands at $2.91 Trillion with 15.33 billion shares outstanding. The market cap of many countries’ entire stock market is lower than Apple’s market cap.

From a performance perspective, Apple’s shares have been average to poor relatively so far this year. The shares are up by 2.28% YTD. However over the past 5 years it is up by an astonishing 325% excluding dividends. Though the returns are excellent, it can be argued that much of the rise in Apple’s stock price can be attributed to its buybacks. Apple is the king of buybacks. As Apple continued to buy back its own shares its stock price soared. The following chart chart shows the buybacks vs. total shares outstanding:

Click to enlarge

Source: @Charlie Bilello, Creative Planning

Via Thinking out loud, Syz Group

From the above article:

Apple has repurchased no less than $625 billion worth of its own shares over the past ten years, which is more than the market apitalization of 492 S&P 500 companies… The delisting of such a large number of shares partly explains the stock’s excellent performance over the past decade.

It remains to be see if Apple can continue to earn excellent returns for investors like in the past.

Related:

Disclosure: No positions