Ford Motor Company (F:NYE) Analysts rates a Hold, $20 target

STA Research
by: STA Research

Based on the Ford Motor Company stock forecasts from 18 analysts, the average analyst target price for Ford Motor Company is USD 20.28 over the next 12 months. Ford Motor Company’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of Ford Motor Company is Bullish, which is based on 7 positive signals and 2 negative signals. At the last closing, Ford Motor Company’s stock price was USD 13.55. Ford Motor Company’s stock price has changed by +0.84% over the past week, -0.61% over the past month and -9.12% over the last year.

Goldman Sachs just recently maintained the stock with a Neutral rating, and cut the target on the stock to $14 from $18.

Ford Motor Company is a global automaker that designs, manufactures, markets, and services Ford trucks, automobiles, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles. Automotive, Mobility and Ford Credit are the three segments in which it works.

ARB Corporation Limited and the Ford Motor Company have formed a strategic partnership to produce a range of aftermarket solutions for the new Ford Bronco. Ford Motor Company, situated in Dearborn, Michigan, was founded in 1903.

 

What we like:

Superior total returns

The 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.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on a total return basis, for investors seeking high-income yields.

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

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

 

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.

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.

 

 

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