Analysts rate Ford Motor Company (F:NYE) with a Buy, $20 Target

STA Research
by: STA Research
Ford stock dividend

Analysts rate Ford Motor Company stock with a consensus Buy rating and a 12-month average target price of $20.21 per share.

Barclays downgrades Ford Motor Company from Overweight to Equal-Weight, and lowered the target price to $17 from 23 on the company’s stock.

Based on the Ford Motor Company stock forecasts from 17 analysts, the average analyst target price for Ford Motor Company is USD 20.21 over the next 12 months. Ford Motor Company’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Ford Motor Company is Neutral, which is based on 7 positive signals and 7 negative signals. At the last closing, Ford Motor Company’s stock price was USD 14.96. Ford Motor Company’s stock price has changed by -1.95% over the past week, -1.01% over the past month and +19.58% over the last year.

Ford Motor Company designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. It operates through three segments: Automotive, Mobility, and Ford Credit. The company has a strategic collaboration with ARB Corporation Limited to develop a suite of aftermarket products for the new Ford Bronco. Ford Motor Company was incorporated in 1903 and is based in Dearborn, Michigan.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior total returns

Ford Motor Company stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Ford Motor Company stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced on a cash flow basis

Ford Motor Company stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Revenue Growth

Ford Motor Company stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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