FORD MOTOR CO (F) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:F - US3453708600 - Common Stock
13.56 USD
-0.15 (-1.09%)
13.5497 USD
-0.01 (-0.08%)
We assign a fundamental rating of 5 out of 10 to F. F was compared to 35 industry peers in the Automobiles industry. Both the profitability and the financial health of F get a neutral evaluation. Nothing too spectacular is happening here. F scores decently on growth, while it is valued quite cheap. This could make an interesting combination. F also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year F was profitable.
- In the past year F had a positive cash flow from operations.
- In multiple years F reported negative net income over the last 5 years.
- In the past 5 years F always reported a positive cash flow from operatings.
1.2 Ratios
- F has a better Return On Assets (1.56%) than 75.00% of its industry peers.
- F has a better Return On Equity (9.93%) than 91.67% of its industry peers.
- The Return On Invested Capital of F (1.45%) is better than 75.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for F 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
- F's Profit Margin of 2.48% is fine compared to the rest of the industry. F outperforms 77.78% of its industry peers.
- F's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 1.91%, F is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of F has grown nicely.
- With a Gross Margin value of 7.53%, F perfoms like the industry average, outperforming 50.00% 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 | 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
- F has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, F has less shares outstanding
- 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 1.01, we must say that F is in the distress zone and has some risk of bankruptcy.
- F has a better Altman-Z score (1.01) than 63.89% of its industry peers.
- 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.
- The Debt to FCF ratio of F (13.61) is better than 80.56% of its industry peers.
- A Debt/Equity ratio of 2.59 is on the high side and indicates that F has dependencies on debt financing.
- The Debt to Equity ratio of F (2.59) is worse than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 13.61 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.2
WACC7.29%
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's Current ratio of 1.12 is in line compared 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- The earnings per share for F have decreased strongly by -22.41% in the last year.
- The Earnings Per Share has been growing by 9.29% on average over the past years. This is quite good.
- Looking at the last year, F shows a small growth in Revenue. The Revenue has grown by 3.75% in the last year.
- The Revenue has been growing slightly by 3.48% on average over the past years.
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-38.46%
EPS Next 2Y-8%
EPS Next 3Y-0.69%
EPS Next 5Y9.35%
Revenue Next Year2.19%
Revenue Next 2Y1.64%
Revenue Next 3Y1.37%
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 10.04, which indicates a very decent valuation of F.
- Based on the Price/Earnings ratio, F is valued cheaper than 94.44% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, F is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.71 indicates a reasonable valuation of F.
- Based on the Price/Forward Earnings ratio, F is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
- F's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 8.71 |
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.
- Based on the Price/Free Cash Flow ratio, F is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.54 | ||
| EV/EBITDA | 12.4 |
4.3 Compensation for Growth
- The decent profitability rating of F may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y-8%
EPS Next 3Y-0.69%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.38%, F is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.84, F pays a better dividend. On top of this F pays more dividend than 97.22% 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
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
- 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 10.04 and the Price/Book (PB) ratio is 1.14.
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%.