How Do Value-Focused Investors See Ford Motor Company (F) Shares?

Ford Motor Company logged a -5.3% change during today's afternoon session, and is now trading at a price of $12.72 per share. The S&P 500 index moved 0.4% and the Nasdaq posted a 0.7% change. F's trading volume is 96,444,004 compared to the stock's average volume of 54,131,645.

Ford Motor Company shares moved -47.8% over the last 52 weeks, with a high of $25.13 and a low of $10.61. During this time, the stock lagged the S&P 500 index by -35.2%. As of January 2022, the company's 50-day average price is $13.0584. Ford Motor Company designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. The large-cap Consumer Cyclical company has 183,000 full time employees and is based in Dearborn, MI. Ford Motor Company has returned a 3.4% dividend yield over the last 12 months.

Declining EPS Growth Trend with a Highly Leveraged Balance Sheet:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $155,900 $127,144 $136,341
Revenue Growth n/a -18.45% 7.23%
Gross Margins 13.6% 11.3% 15.9%
Gross Margins Growth n/a -16.91% 40.71%
Operating Margins 6.4% 3.3% 7.2%
Operating Margins Growth n/a -48.44% 118.18%
Earnings Per Share $0.01 -$0.32 $4.45
EPS Growth n/a -3300.0% 1490.63%
Free Cash Flow (MM) $10,007 $18,527 $9,560
FCF Growth n/a 85.14% -48.4%
Capital Expenditures (MM) -$7,632 -$5,742 -$6,227
Net Debt / EBITDA 7.56 8.4 5.05

Ford Motor Company Is Currently Fairly Valued:

Compared to the Consumer Cyclical sector's average of 24.11, Ford Motor Company has a trailing twelve month P/E ratio of 5.7 and, according to its EPS guidance of 1.69, an expected P/E ratio of 7.5. Ford Motor Company's PEG ratio is -0.01 based on its -623.67% average growth rate of historical and projected earnings per share. This indicates that the company's shares are overvalued.

Ford Motor Company is also undervalued in terms of its assets because its P/B ratio is 1.2 compared to its sector average of 3.11. The company's shares are currently trading -29.5% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.38 * 10.478) = $18.04

Ford Motor Company Is the Subject of Mixed Market Indicators:

20 analysts are following Ford Motor Company and have set target prices ranging from $10 to $24 per share. On average, they have given the company a rating of hold. At the current price of $12.72, F is trading -10.86% away from its average analyst target price of $14.27 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 3.2% of the company's shares are tied to short positions. Institutions own 52.7% of Ford Motor Company's shares, while the insider ownership rate stands at 0.21%. The biggest shareholder is the Vanguard Group, Inc. with a 8% stake in the company worth approximately $4,227,885,454.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.