Now trading at a price of $13.59, Ford Motor Company has moved 5.1% so far today.
Over the last year, Ford Motor Company logged a 2.3% change, with its stock price reaching a high of $16.68 and a low of $10.61. Over the same period, the stock underperformed the S&P 500 index by -4.0%. As of April 2023, the company's 50-day average price was $12.1. Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. Based in Dearborn, MI, the large-cap Consumer Discretionary company has 173,000 full time employees. Ford Motor Company has offered a 4.3% dividend yield over the last 12 months.
Exceptional EPS Growth at the Expense of a Highly Leveraged Balance Sheet:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $155,900 | $127,144 | $136,341 | $158,057 |
| Gross Margins | 13.6% | 11.3% | 15.9% | 15.0% |
| Operating Margins | 6.4% | 3.3% | 7.2% | 8.1% |
| Net Margins | 0.03% | -1.01% | 13.16% | -1.25% |
| Net Income (MM) | $47 | -$1,279 | $17,937 | -$1,981 |
| Net Interest Income | -$9,712,000 | -$9,806,000 | -$6,794,000 | -$7,139,000 |
| Depreciation & Amort. | -$8,490,000 | -$7,457,000 | -$5,960,000 | -$6,493,000 |
| Earnings Per Share | $0.01 | -$0.32 | $4.45 | $0.73 |
| EPS Growth | n/a | -3300.0% | 1490.63% | -83.6% |
| Diluted Shares (MM) | 4,004 | 3,973 | 4,034 | 3,930 |
| Free Cash Flow (MM) | $10,007 | $18,527 | $9,560 | -$13 |
| Capital Expenditures (MM) | -$7,632 | -$5,742 | -$6,227 | -$6,866 |
| Net Current Assets (MM) | -$111,260 | -$119,706 | -$99,417 | -$96,241 |
| Current Ratio | 1.16 | 1.2 | 1.2 | 1.2 |
| Long Term Debt (MM) | $101,361 | $110,341 | $88,400 | $88,805 |
| Net Debt / EBITDA | 7.88 | 8.47 | 3.86 | 10.59 |
Ford Motor Company has exceptional EPS growth, stable revenues and a flat capital expenditure trend, and generally positive cash flows. However, the firm suffers from slimmer gross margins than its peers and a highly leveraged balance sheet. Finally, we note that Ford Motor Company has average net margins with a positive growth rate and just enough current assets to cover current liabilities.
Ford Motor Company's Valuation Is in Line With Its Sector Averages:
Ford Motor Company has a trailing twelve month P/E ratio of 16.6, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $1.66, the company has a forward P/E ratio of 7.3. According to the 178.0% compound average growth rate of Ford Motor Company's historical and projected earnings per share, the company's PEG ratio is 0.09. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 11.8%. On this basis, the company's PEG ratio is 1.4. This implies that the shares are fairly valued. Additionally, the market is possibly undervaluing Ford Motor Company in terms of its equity because its P/B ratio is 1.28 whereas the sector average is 3.12. The company's shares are currently trading -20.3% below their Graham number.
There's an Analyst Consensus of Some Upside Potential for Ford Motor Company:
The 19 analysts following Ford Motor Company have set target prices ranging from $10.0 to $22.0 per share, for an average of $13.61 with a hold rating. As of April 2023, the company is trading -11.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Ford Motor Company has a very low short interest because 0.0% of the company's shares are sold short. Institutions own 52.7% of the company's shares, and the insider ownership rate stands at 0.18%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 9% stake in the company is worth $4,588,685,730.
