We assign a fundamental rating of 5 out of 10 to F. F was compared to 35 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 valued quite cheap, while showing a decent growth score. This is a good combination! Finally F also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

The Return On Assets of F (1.56%) is better than 77.14% of its industry peers.
F has a better Return On Equity (9.93%) than 91.43% of its industry peers.
With a decent Return On Invested Capital value of 1.45%, F is doing good in the industry, outperforming 77.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for F is below the industry average of 5.26%.

		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

With a decent Profit Margin value of 2.48%, F is doing good in the industry, outperforming 80.00% of the companies in the same industry.
F's Profit Margin has improved in the last couple of years.
F's Operating Margin of 1.91% is fine compared to the rest of the industry. F outperforms 77.14% 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 in line with its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for F has been reduced compared to 1 year ago.
Compared to 5 years ago, F has less shares outstanding
The debt/assets ratio for F is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.02, we must say that F is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of F (1.02) is comparable to the rest of the industry.
The Debt to FCF ratio of F is 13.61, which is on the high side as it means it would take F, 13.61 years of fcf income to pay off all of its debts.
F has a better Debt to FCF ratio (13.61) than 80.00% 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.
F has a worse Debt to Equity ratio (2.59) than 71.43% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.59
Debt/FCF	13.61
Altman-Z	1.02

ROIC/WACC0.2

WACC7.35%

2.3 Liquidity

A Current Ratio of 1.12 indicates that F should not have too much problems paying its short term obligations.
F's Current ratio of 1.12 is on the low side compared to the rest of the industry. F is outperformed by 60.00% of its industry peers.
F has a Quick Ratio of 1.12. This is a bad value and indicates that F is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of F (0.98) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.12
Quick Ratio	0.98

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
The Revenue has been growing slightly by 3.75% in the past 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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.28, which indicates a very decent valuation of F.
88.57% of the companies in the same industry are more expensive than F, based on the Price/Earnings ratio.
F is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.91, the valuation of F can be described as very reasonable.
Based on the Price/Forward Earnings ratio, F is valued cheaply inside the industry as 88.57% 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 25.57.

		Industry Rank	Sector Rank
PE	10.28
Fwd PE	8.91

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, F is valued a bit cheaper than 77.14% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than F, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	4.65
EV/EBITDA	12.51

4.3 Compensation for Growth

The decent profitability rating of F may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)1.11

EPS Next 2Y-8%

EPS Next 3Y-0.69%

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5. Dividend

5.1 Amount

F has a Yearly Dividend Yield of 4.29%, which is a nice return.
F's Dividend Yield is rather good when compared to the industry average which is at 0.86. F pays more dividend than 94.29% of the companies 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	4.29%

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.
The dividend of F is growing, but earnings are growing more, so the dividend growth is sustainable.

DP63.45%

EPS Next 2Y-8%

EPS Next 3Y-0.69%

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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 10.28 and the Price/Book (PB) ratio is 1.17.

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%.