Now trading at a price of $11.37, Ford Motor has moved -1.0% so far today.
Ford Motor returned gains of 10.0% last year, with its stock price reaching a high of $11.99 and a low of $8.44. Over the same period, the stock underperformed the S&P 500 index by -7.3%. The company's 50-day average price was $11.45. Ford Motor Company develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles worldwide. Based in Dearborn, MI, the Large-Cap Industrials company has 169,000 full time employees. Ford Motor has offered a 5.2% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $155,900 | $127,144 | $136,341 | $158,057 | $176,191 | $184,992 |
| Operating Margins | 0% | -3% | 3% | 4% | 3% | 3% |
| Net Margins | 0% | -1% | 13% | -1% | 2% | 3% |
| Net Income (M) | $84 | -$1,276 | $17,910 | -$2,152 | $4,329 | $5,879 |
| Net Interest Expense (M) | -$226 | $46 | $1,803 | $1,259 | $1,302 | $1,115 |
| Depreciation & Amort. (M) | $9,689 | $8,751 | $7,318 | $7,642 | $7,690 | $7,567 |
| Diluted Shares (M) | 4,004 | 3,973 | 4,034 | 4,014 | 4,041 | 4,021 |
| Earnings Per Share | $0.01 | -$0.32 | $4.45 | -$0.49 | $1.08 | $1.46 |
| EPS Growth | n/a | -3300.0% | 1490.63% | -111.01% | 320.41% | 35.19% |
| Avg. Price | $8.32 | $6.62 | $13.39 | $15.37 | $12.19 | $11.49 |
| P/E Ratio | 832.0 | -20.69 | 2.98 | -31.37 | 11.18 | 7.76 |
| Free Cash Flow (M) | $10,007 | $18,527 | $9,560 | -$13 | $6,682 | $6,739 |
| CAPEX (M) | $7,632 | $5,742 | $6,227 | $6,866 | $8,236 | $8,684 |
| EV / EBITDA | 68.16 | 67.24 | 29.9 | 24.82 | 27.78 | 29.93 |
| Total Debt (M) | $683,946 | $291,038 | $321,285 | $309,047 | $341,472 | $360,026 |
| Net Debt / EBITDA | 64.94 | 61.2 | 25.4 | 20.4 | 24.08 | 26.36 |
| Current Ratio | 1.16 | 1.2 | 1.2 | 1.2 | 1.2 | 1.16 |
Ford Motor has weak operating margins with a unknown rate of growth, positive cash flows, and a highly leveraged balance sheet. On the other hand, the company benefits from growing revenues and increasing reinvestment in the business and exceptional EPS growth. Furthermore, Ford Motor has just enough current assets to cover current liabilities, as shown by its current ratio of 1.16.
Ford Motor Has Attractive Multiples and Trades Below Its Graham Number:
Ford Motor has a trailing twelve month P/E ratio of 14.7, compared to an average of 24.03 for the Industrials sector. Based on its EPS guidance of $1.75, the company has a forward P/E ratio of 6.5. According to the 109.1% compound average growth rate of Ford Motor's historical and projected earnings per share, the company's PEG ratio is 0.13. 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 30.2%. On this basis, the company's PEG ratio is 0.49. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing Ford Motor in terms of its equity because its P/B ratio is 1.0 whereas the sector average is 2.89. The company's shares are currently trading -40.6% above their Graham number.
Analysts Give Ford Motor an Average Rating of Hold:
The 21 analysts following Ford Motor have set target prices ranging from $8.0 to $16.0 per share, for an average of $10.8 with a hold rating. The company is trading 5.3% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Ford Motor has an average amount of shares sold short because 4.9% of the company's shares are sold short. Institutions own 63.9% of the company's shares, and the insider ownership rate stands at 0.29%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $5,257,817,219.
