FORD MOTOR CO (F)
US3453708600 - Common Stock
We assign a fundamental rating of 5 out of 10 to F. F was compared to 41 industry peers in the Automobiles industry. While F is still in line with the averages on profitability rating, there are concerns on its financial health. F is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year F was profitable.
F had a positive operating cash flow in the past year.
In multiple years F reported negative net income over the last 5 years.
Each year in the past 5 years F had a positive operating cash flow.
1.2 Ratios
F has a Return On Assets of 1.23%. This is in the better half of the industry: F outperforms 70.73% of its industry peers.
F has a Return On Equity of 7.96%. This is in the better half of the industry: F outperforms 73.17% of its industry peers.
F has a Return On Invested Capital of 1.51%. This is in the better half of the industry: F outperforms 68.29% of its industry peers.
F had an Average Return On Invested Capital over the past 3 years of 2.34%. This is significantly below the industry average of 10.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 7.96% | ||
| ROIC | 1.51% |
ROA(3y)2.6%
ROA(5y)1.47%
ROE(3y)14.18%
ROE(5y)7.7%
ROIC(3y)2.34%
ROIC(5y)N/A
1.3 Margins
F has a better Profit Margin (1.93%) than 70.73% of its industry peers.
F's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 2.05%, F is doing good in the industry, outperforming 68.29% of the companies in the same industry.
F's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 7.68%, F is in line with its industry, outperforming 43.90% of the companies in the same industry.
F's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.05% | ||
| PM (TTM) | 1.93% | ||
| GM | 7.68% |
OM growth 3YN/A
OM growth 5Y9.16%
PM growth 3YN/A
PM growth 5Y1.47%
GM growth 3Y26.16%
GM growth 5Y0.13%
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, F has more shares outstanding
Compared to 1 year ago, F has a worse debt to assets ratio.
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.
F has a Altman-Z score of 1.01. This is in the better half of the industry: F outperforms 60.98% of its industry peers.
F has a debt to FCF ratio of 24.55. This is a negative value and a sign of low solvency as F would need 24.55 years to pay back of all of its debts.
F has a Debt to FCF ratio of 24.55. This is amongst the best in the industry. F outperforms 85.37% of its industry peers.
A Debt/Equity ratio of 2.74 is on the high side and indicates that F has dependencies on debt financing.
F's Debt to Equity ratio of 2.74 is on the low side compared to the rest of the industry. F is outperformed by 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 24.55 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.23
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.15 indicates that F should not have too much problems paying its short term obligations.
F has a Current ratio of 1.15. This is in the lower half of the industry: F underperforms 70.73% of its industry peers.
F has a Quick Ratio of 1.15. This is a bad value and indicates that F is not financially healthy enough and could expect problems in meeting its short term obligations.
F has a Quick ratio of 0.98. This is comparable to the rest of the industry: F outperforms 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for F have decreased strongly by -22.67% in the last year.
Measured over the past years, F shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.49% on average per year.
The Revenue has been growing slightly by 4.89% in the past year.
The Revenue has been growing slightly by 1.90% on average over the past years.
EPS 1Y (TTM)-22.67%
EPS 3Y70.44%
EPS 5Y9.49%
EPS Q2Q%25.64%
Revenue 1Y (TTM)4.89%
Revenue growth 3Y11.49%
Revenue growth 5Y1.9%
Sales Q2Q%4.6%
3.2 Future
Based on estimates for the next years, F will show a decrease in Earnings Per Share. The EPS will decrease by -1.29% on average per year.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y-10%
EPS Next 2Y-6.51%
EPS Next 3Y-2.26%
EPS Next 5Y-1.29%
Revenue Next Year4.1%
Revenue Next 2Y1.88%
Revenue Next 3Y1.37%
Revenue Next 5Y3.1%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.23, the valuation of F can be described as very cheap.
Based on the Price/Earnings ratio, F is valued cheaper than 90.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.65. F is valued rather cheaply when compared to this.
F is valuated cheaply with a Price/Forward Earnings ratio of 6.11.
F's Price/Forward Earnings ratio is rather cheap when compared to the industry. F is cheaper than 92.68% of the companies in the same industry.
F's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.23 | ||
| Fwd PE | 6.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of F indicates a somewhat cheap valuation: F is cheaper than 73.17% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, F is valued cheaper than 95.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | 11.56 |
4.3 Compensation for Growth
F has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as F's earnings are expected to decrease with -2.26% in the coming years.
PEG (NY)N/A
PEG (5Y)0.66
EPS Next 2Y-6.51%
EPS Next 3Y-2.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.42%, F is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.74, F pays a better dividend. On top of this F pays more dividend than 97.56% of the companies listed in the same industry.
F's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
On average, the dividend of F grows each year by 11.00%, which is quite nice.
F has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of F decreased in the last 3 years.
Dividend Growth(5Y)11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
F pays out 88.50% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of F has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP88.5%
EPS Next 2Y-6.51%
EPS Next 3Y-2.26%
FORD MOTOR CO
NYSE:F (11/21/2024, 1:05:08 PM)
10.835
+0.11 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap43.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.23 | ||
| Fwd PE | 6.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 7.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.05% | ||
| PM (TTM) | 1.93% | ||
| GM | 7.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-22.67%
EPS 3Y70.44%
EPS 5Y
EPS Q2Q%
EPS Next Y-10%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.89%
Revenue growth 3Y11.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y