FORD MOTOR CO (1F.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1F - US3453708600 - Common Stock
11.586 EUR
+0.18 (+1.6%)
1F gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Automobiles industry. 1F has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1F has a decent growth rate and is not valued too expensively. 1F also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- 1F had positive earnings in the past year.
- In the past year 1F had a positive cash flow from operations.
- In multiple years 1F reported negative net income over the last 5 years.
- In the past 5 years 1F always reported a positive cash flow from operatings.
1.2 Ratios
- 1F has a Return On Assets of 1.56%. This is comparable to the rest of the industry: 1F outperforms 50.00% of its industry peers.
- The Return On Equity of 1F (9.93%) is better than 84.38% of its industry peers.
- 1F has a Return On Invested Capital of 1.45%. This is in the lower half of the industry: 1F underperforms 65.63% of its industry peers.
- 1F had an Average Return On Invested Capital over the past 3 years of 2.46%. This is below the industry average of 6.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 9.93% | ||
| ROIC | 1.45% |
ROA(3y)0.96%
ROA(5y)1.88%
ROE(3y)6.23%
ROE(5y)10.3%
ROIC(3y)2.46%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 2.48%, 1F is in line with its industry, outperforming 53.13% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1F has grown nicely.
- Looking at the Operating Margin, with a value of 1.91%, 1F is doing worse than 65.63% of the companies in the same industry.
- 1F's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 7.53%, 1F is doing worse than 84.38% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1F has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.91% | ||
| PM (TTM) | 2.48% | ||
| GM | 7.53% |
OM growth 3Y-5.26%
OM growth 5Y26.95%
PM growth 3Y-37.72%
PM growth 5Y153.85%
GM growth 3Y-11.41%
GM growth 5Y0.9%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1F is destroying value.
- Compared to 1 year ago, 1F has less shares outstanding
- 1F has less shares outstanding than it did 5 years ago.
- 1F has a worse debt/assets ratio than last year.
2.2 Solvency
- 1F has an Altman-Z score of 1.01. This is a bad value and indicates that 1F is not financially healthy and even has some risk of bankruptcy.
- 1F has a worse Altman-Z score (1.01) than 62.50% of its industry peers.
- 1F has a debt to FCF ratio of 13.61. This is a negative value and a sign of low solvency as 1F would need 13.61 years to pay back of all of its debts.
- The Debt to FCF ratio of 1F (13.61) is comparable to the rest of the industry.
- 1F has a Debt/Equity ratio of 2.59. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.59, 1F is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 13.61 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.21
WACC6.89%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that 1F should not have too much problems paying its short term obligations.
- 1F has a Current ratio (1.12) which is in line with its industry peers.
- 1F has a Quick Ratio of 1.12. This is a bad value and indicates that 1F is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1F has a Quick ratio of 0.98. This is in the better half of the industry: 1F outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- 1F shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.41%.
- Measured over the past years, 1F shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.29% on average per year.
- The Revenue has been growing slightly by 3.75% in the past year.
- 1F shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.48% yearly.
EPS 1Y (TTM)-22.41%
EPS 3Y0.92%
EPS 5Y9.29%
EPS Q2Q%-8.16%
Revenue 1Y (TTM)3.75%
Revenue growth 3Y10.71%
Revenue growth 5Y3.48%
Sales Q2Q%9.56%
3.2 Future
- The Earnings Per Share is expected to grow by 9.35% on average over the next years. This is quite good.
- The Revenue is expected to grow by 2.44% on average over the next years.
EPS Next Y-40.78%
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
EPS Next 5Y9.35%
Revenue Next Year1.21%
Revenue Next 2Y0.69%
Revenue Next 3Y0.26%
Revenue Next 5Y2.44%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.99, the valuation of 1F can be described as very reasonable.
- Based on the Price/Earnings ratio, 1F is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
- 1F's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 8.95 indicates a reasonable valuation of 1F.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1F indicates a somewhat cheap valuation: 1F is cheaper than 62.50% of the companies listed in the same industry.
- 1F is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
- 1F's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, 1F is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.52 | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
- A cheap valuation may be justified as 1F's earnings are expected to decrease with -3.25% in the coming years.
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.16%, 1F is a good candidate for dividend investing.
- 1F's Dividend Yield is rather good when compared to the industry average which is at 3.48. 1F pays more dividend than 84.38% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1F pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.16% |
5.2 History
- The dividend of 1F has a limited annual growth rate of 5.56%.
Dividend Growth(5Y)5.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 63.45% of the earnings are spent on dividend by 1F. This is not a sustainable payout ratio.
- 1F's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.45%
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
FORD MOTOR CO / 1F.MI FAQ
What is the ChartMill fundamental rating of FORD MOTOR CO (1F.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1F.MI.
What is the valuation status for 1F stock?
ChartMill assigns a valuation rating of 6 / 10 to FORD MOTOR CO (1F.MI). This can be considered as Fairly Valued.
What is the profitability of 1F stock?
FORD MOTOR CO (1F.MI) has a profitability rating of 4 / 10.
Can you provide the financial health for 1F stock?
The financial health rating of FORD MOTOR CO (1F.MI) is 3 / 10.
How sustainable is the dividend of FORD MOTOR CO (1F.MI) stock?
The dividend rating of FORD MOTOR CO (1F.MI) is 6 / 10 and the dividend payout ratio is 63.45%.