FORD MOTOR CO (F) Stock Fundamental Analysis
NYSE:F - New York Stock Exchange, Inc. - US3453708600 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to F. F was compared to 37 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.
In the past year F had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: F reported negative net income in multiple years.
F had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
F has a better Return On Assets (1.76%) than 72.97% of its industry peers.
Looking at the Return On Equity, with a value of 11.24%, F belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
The Return On Invested Capital of F (1.56%) is better than 70.27% of its industry peers.
F had an Average Return On Invested Capital over the past 3 years of 2.46%. This is below the industry average of 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 11.24% | ||
| ROIC | 1.56% |
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
With a decent Profit Margin value of 2.74%, F is doing good in the industry, outperforming 75.68% of the companies in the same industry.
F's Profit Margin has improved in the last couple of years.
F's Operating Margin of 2.36% is fine compared to the rest of the industry. F outperforms 72.97% of its industry peers.
In the last couple of years the Operating Margin of F has grown nicely.
The Gross Margin of F (8.01%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of F has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.36% | ||
| PM (TTM) | 2.74% | ||
| GM | 8.01% |
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 F is destroying value.
The number of shares outstanding for F has been reduced compared to 1 year ago.
F has less shares outstanding than it did 5 years ago.
The debt/assets ratio for F is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that F is in the distress zone and has some risk of bankruptcy.
F's Altman-Z score of 1.03 is in line compared to the rest of the industry. F outperforms 56.76% of its industry peers.
F has a debt to FCF ratio of 16.68. This is a negative value and a sign of low solvency as F would need 16.68 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 16.68, F belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
A Debt/Equity ratio of 3.38 is on the high side and indicates that F has dependencies on debt financing.
F has a Debt to Equity ratio of 3.38. This is in the lower half of the industry: F underperforms 67.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.38 | ||
| Debt/FCF | 16.68 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.22
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.13 indicates that F should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, F is in line with its industry, outperforming 43.24% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that F may have some problems paying its short term obligations.
F has a better Quick ratio (0.97) than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for F have decreased strongly by -21.16% in the last year.
The Earnings Per Share has been growing by 9.29% on average over the past years. This is quite good.
F shows a small growth in Revenue. In the last year, the Revenue has grown by 3.03%.
Measured over the past years, F shows a small growth in Revenue. The Revenue has been growing by 3.48% on average per year.
EPS 1Y (TTM)-21.16%
EPS 3Y0.92%
EPS 5Y9.29%
EPS Q2Q%-71.43%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y10.71%
Revenue growth 5Y3.48%
Sales Q2Q%-6.19%
3.2 Future
Based on estimates for the next years, F will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.92% on average per year.
F is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.13% yearly.
EPS Next Y-41.79%
EPS Next 2Y-14.1%
EPS Next 3Y-5.37%
EPS Next 5Y9.92%
Revenue Next Year-4.08%
Revenue Next 2Y-1.38%
Revenue Next 3Y0.07%
Revenue Next 5Y1.13%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 7.91, the valuation of F can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of F indicates a rather cheap valuation: F is cheaper than 89.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. F is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.68, the valuation of F can be described as reasonable.
83.78% of the companies in the same industry are more expensive than F, based on the Price/Forward Earnings ratio.
F's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
F's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. F is cheaper than 86.49% of the companies in the same industry.
F's Price/Free Cash Flow ratio is rather cheap when compared to the industry. F is cheaper than 97.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.03 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
The decent profitability rating of F may justify a higher PE ratio.
A cheap valuation may be justified as F's earnings are expected to decrease with -5.37% in the coming years.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y-14.1%
EPS Next 3Y-5.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.21%, F is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.71, F pays a better dividend. On top of this F pays more dividend than 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, F pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
5.2 History
The dividend of F has a limited annual growth rate of 5.56%.
F has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
F pays out 59.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
F's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.55%
EPS Next 2Y-14.1%
EPS Next 3Y-5.37%
11.78
-0.13 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners62.21%
Inst Owner Change0.01%
Ins Owners0.28%
Ins Owner Change4.8%
Market Cap46.84B
Analysts54.55
Price Target10.29 (-12.65%)
Short Float %3.87%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
Yearly Dividend0.77
Dividend Growth(5Y)5.56%
DP59.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)350.9%
Min EPS beat(2)14.79%
Max EPS beat(2)687.01%
EPS beat(4)3
Avg EPS beat(4)167.88%
Min EPS beat(4)-32.5%
Max EPS beat(4)687.01%
EPS beat(8)6
Avg EPS beat(8)101.02%
EPS beat(12)9
Avg EPS beat(12)74.63%
EPS beat(16)12
Avg EPS beat(16)89.35%
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)0.53%
Max Revenue beat(2)2.41%
Revenue beat(4)3
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.21%
Max Revenue beat(4)2.41%
Revenue beat(8)5
Avg Revenue beat(8)0.95%
Revenue beat(12)9
Avg Revenue beat(12)3.51%
Revenue beat(16)13
Avg Revenue beat(16)4.39%
PT rev (1m)7.07%
PT rev (3m)0.38%
EPS NQ rev (1m)-2.61%
EPS NQ rev (3m)-14.44%
EPS NY rev (1m)3.4%
EPS NY rev (3m)-20.66%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 8.68 | ||
| P/S | 0.26 | ||
| P/FCF | 5.03 | ||
| P/OCF | 2.64 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)1.49
EY12.65%
EPS(NY)1.36
Fwd EY11.53%
FCF(TTM)2.34
FCFY19.87%
OCF(TTM)4.46
OCFY37.82%
SpS45.99
BVpS11.22
TBVpS11.22
PEG (NY)N/A
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 11.24% | ||
| ROCE | 2.45% | ||
| ROIC | 1.56% | ||
| ROICexc | 1.84% | ||
| ROICexgc | 1.84% | ||
| OM | 2.36% | ||
| PM (TTM) | 2.74% | ||
| GM | 8.01% | ||
| FCFM | 5.09% |
ROA(3y)0.96%
ROA(5y)1.88%
ROE(3y)6.23%
ROE(5y)10.3%
ROIC(3y)2.46%
ROIC(5y)N/A
ROICexc(3y)3.15%
ROICexc(5y)N/A
ROICexgc(3y)3.17%
ROICexgc(5y)N/A
ROCE(3y)3.36%
ROCE(5y)N/A
ROICexcg growth 3Y-1.3%
ROICexcg growth 5Y28.22%
ROICexc growth 3Y-1.27%
ROICexc growth 5Y28.18%
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%
F-Score5
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.38 | ||
| Debt/FCF | 16.68 | ||
| Debt/EBITDA | 12.74 | ||
| Cap/Depr | 111.6% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 149.55% | ||
| Profit Quality | 185.51% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.03 |
F-Score5
WACC7.01%
ROIC/WACC0.22
Cap/Depr(3y)103.9%
Cap/Depr(5y)92.48%
Cap/Sales(3y)4.57%
Cap/Sales(5y)4.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.16%
EPS 3Y0.92%
EPS 5Y9.29%
EPS Q2Q%-71.43%
EPS Next Y-41.79%
EPS Next 2Y-14.1%
EPS Next 3Y-5.37%
EPS Next 5Y9.92%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y10.71%
Revenue growth 5Y3.48%
Sales Q2Q%-6.19%
Revenue Next Year-4.08%
Revenue Next 2Y-1.38%
Revenue Next 3Y0.07%
Revenue Next 5Y1.13%
EBIT growth 1Y-5.62%
EBIT growth 3Y4.89%
EBIT growth 5Y31.37%
EBIT Next Year5.1%
EBIT Next 3Y10.77%
EBIT Next 5Y14.93%
FCF growth 1Y168.97%
FCF growth 3Y-11%
FCF growth 5Y-7.6%
OCF growth 1Y65.01%
OCF growth 3Y-0.77%
OCF growth 5Y-2.65%