Ford Motor Company (F:NYE) Fundamental analysis is slightly bullish, $18 target

STA Research
by: STA Research
Ford Motor Company

Based on the Ford stock dividend forecasts from 15 analysts, the average analyst Ford stock price target is USD 17.81 over the next 12 months. Ford Motor Company’s average analyst rating is Hold. Stock Target Advisor’s own Ford stock dividend analysis is Slightly Bullish, which is based on 9 positive signals and 6 negative signals. At the last closing, Ford Motor Company stock price was USD 13.19Ford Motor Company stock price has changed by +0.46% over the past week, +1.15% over the past month and -4.83% 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:

The Ford stock dividend 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 Ford stock dividend 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 total return basis, for investors seeking high income yields.

Underpriced compared to earnings:

The Ford stock price target 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.

Underpriced compared to book value:

The Ford stock price target is trading low compared to its peers on a price to book value 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 better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The Ford Motor company stock price had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The Ford Motor company stock price had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

The Ford stock dividend 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 Ford stock price target are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced on cashflow basis:

The Ford stock price target 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 to buy.

Poor capital utilization:

The Ford stock price target has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets:

The Ford stock price target has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged:

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

Low Revenue Growth:

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

Disclaimer

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