FORD MOTOR CO (F) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:F - US3453708600 - Common Stock
13.71 USD
-0.06 (-0.44%)
13.7196 USD
+0.01 (+0.07%)
Taking everything into account, F scores 5 out of 10 in our fundamental rating. F was compared to 36 industry peers in the Automobiles industry. F has only an average score on both its financial health and profitability. F scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally F also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- F had positive earnings in the past year.
- F had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: F reported negative net income in multiple years.
- In the past 5 years F always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of F (1.56%) is better than 75.00% of its industry peers.
- The Return On Equity of F (9.93%) is better than 91.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.45%, F is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- F had an Average Return On Invested Capital over the past 3 years of 2.46%. This is below the industry average of 5.56%.
| 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%, F is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- In the last couple of years the Profit Margin of F has grown nicely.
- The Operating Margin of F (1.91%) is better than 75.00% of its industry peers.
- In the last couple of years the Operating Margin of F has grown nicely.
- F has a Gross Margin (7.53%) which is comparable to the rest of the industry.
- F's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), F is destroying value.
- F has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, F has less shares outstanding
- F has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.01, we must say that F is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.01, F is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
- F has a debt to FCF ratio of 13.61. This is a negative value and a sign of low solvency as F would need 13.61 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 13.61, F belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
- F 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, F is doing worse than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 13.61 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.2
WACC7.32%
2.3 Liquidity
- F has a Current Ratio of 1.12. This is a normal value and indicates that F is financially healthy and should not expect problems in meeting its short term obligations.
- F has a Current ratio of 1.12. This is comparable to the rest of the industry: F outperforms 41.67% of its industry peers.
- A Quick Ratio of 0.98 indicates that F may have some problems paying its short term obligations.
- F has a Quick ratio (0.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- F shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.41%.
- F shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.29% yearly.
- F shows a small growth in Revenue. In the last year, the Revenue has grown by 3.75%.
- F 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.
- F is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.44% yearly.
EPS Next Y-38.46%
EPS Next 2Y-8%
EPS Next 3Y-0.69%
EPS Next 5Y9.35%
Revenue Next Year2%
Revenue Next 2Y1.28%
Revenue Next 3Y1.07%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.16, which indicates a very decent valuation of F.
- Based on the Price/Earnings ratio, F is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.32. F is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 8.80, the valuation of F can be described as reasonable.
- Based on the Price/Forward Earnings ratio, F is valued cheaper than 86.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, F is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, F is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of F indicates a rather cheap valuation: F is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.59 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
- F has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y-8%
EPS Next 3Y-0.69%
5. Dividend
5.1 Amount
- F has a Yearly Dividend Yield of 4.34%, which is a nice return.
- Compared to an average industry Dividend Yield of 0.81, F pays a better dividend. On top of this F pays more dividend than 97.22% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, F pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
- The dividend of F has a limited annual growth rate of 5.56%.
- F has paid a dividend for at least 10 years, which is a reliable track record.
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 F. This is not a sustainable payout ratio.
- F's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.45%
EPS Next 2Y-8%
EPS Next 3Y-0.69%
FORD MOTOR CO / F FAQ
Can you provide the ChartMill fundamental rating for FORD MOTOR CO?
ChartMill assigns a fundamental rating of 5 / 10 to F.
What is the valuation status of FORD MOTOR CO (F) stock?
ChartMill assigns a valuation rating of 7 / 10 to FORD MOTOR CO (F). This can be considered as Undervalued.
How profitable is FORD MOTOR CO (F) stock?
FORD MOTOR CO (F) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for F stock?
The Price/Earnings (PE) ratio for FORD MOTOR CO (F) is 10.16 and the Price/Book (PB) ratio is 1.15.
How sustainable is the dividend of FORD MOTOR CO (F) stock?
The dividend rating of FORD MOTOR CO (F) is 7 / 10 and the dividend payout ratio is 63.45%.