FORD MOTOR CO (FMC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FMC1 - US3453708600 - Common Stock
11.606 EUR
-0.16 (-1.38%)
We assign a fundamental rating of 4 out of 10 to FMC1. FMC1 was compared to 30 industry peers in the Automobiles industry. There are concerns on the financial health of FMC1 while its profitability can be described as average. FMC1 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year FMC1 was profitable.
- FMC1 had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: FMC1 reported negative net income in multiple years.
- In the past 5 years FMC1 always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 1.56%, FMC1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- FMC1 has a Return On Equity of 9.93%. This is amongst the best in the industry. FMC1 outperforms 83.33% of its industry peers.
- FMC1 has a worse Return On Invested Capital (1.45%) than 70.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FMC1 is below the industry average of 6.43%.
| 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
- FMC1 has a Profit Margin (2.48%) which is comparable to the rest of the industry.
- FMC1's Profit Margin has improved in the last couple of years.
- The Operating Margin of FMC1 (1.91%) is worse than 70.00% of its industry peers.
- In the last couple of years the Operating Margin of FMC1 has grown nicely.
- Looking at the Gross Margin, with a value of 7.53%, FMC1 is doing worse than 90.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of FMC1 has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FMC1 is destroying value.
- The number of shares outstanding for FMC1 has been reduced compared to 1 year ago.
- FMC1 has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, FMC1 has a worse debt to assets ratio.
2.2 Solvency
- FMC1 has an Altman-Z score of 1.01. This is a bad value and indicates that FMC1 is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of FMC1 (1.01) is worse than 60.00% of its industry peers.
- FMC1 has a debt to FCF ratio of 13.61. This is a negative value and a sign of low solvency as FMC1 would need 13.61 years to pay back of all of its debts.
- The Debt to FCF ratio of FMC1 (13.61) is comparable to the rest of the industry.
- FMC1 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, FMC1 is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 13.61 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.21
WACC6.96%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that FMC1 should not have too much problems paying its short term obligations.
- FMC1 has a Current ratio (1.12) which is in line with its industry peers.
- FMC1 has a Quick Ratio of 1.12. This is a bad value and indicates that FMC1 is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.98, FMC1 is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- FMC1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.41%.
- 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.
- FMC1 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.
- Based on estimates for the next years, FMC1 will show a small growth in Revenue. The Revenue will grow by 2.44% on average per year.
EPS Next Y-40.78%
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
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 10.09, which indicates a very decent valuation of FMC1.
- Based on the Price/Earnings ratio, FMC1 is valued a bit cheaper than 80.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, FMC1 is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.02, the valuation of FMC1 can be described as very reasonable.
- FMC1's Price/Forward Earnings ratio is in line with the industry average.
- FMC1 is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FMC1 is valued a bit more expensive than 63.33% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FMC1 indicates a rather cheap valuation: FMC1 is cheaper than 93.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.55 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
- A cheap valuation may be justified as FMC1's earnings are expected to decrease with -3.25% in the coming years.
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
5. Dividend
5.1 Amount
- FMC1 has a Yearly Dividend Yield of 4.34%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.48, FMC1 has a dividend in line with its industry peers.
- FMC1's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
- The dividend of FMC1 has a limited annual growth rate of 5.56%.
Dividend Growth(5Y)5.56%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- FMC1 pays out 63.45% of its income as dividend. This is not a sustainable payout ratio.
- FMC1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.45%
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
FORD MOTOR CO / FMC1.DE FAQ
Can you provide the ChartMill fundamental rating for FORD MOTOR CO?
ChartMill assigns a fundamental rating of 4 / 10 to FMC1.DE.
What is the valuation status of FORD MOTOR CO (FMC1.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to FORD MOTOR CO (FMC1.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for FORD MOTOR CO?
FORD MOTOR CO (FMC1.DE) has a profitability rating of 4 / 10.
What is the valuation of FORD MOTOR CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORD MOTOR CO (FMC1.DE) is 10.09 and the Price/Book (PB) ratio is 1.14.
What is the financial health of FORD MOTOR CO (FMC1.DE) stock?
The financial health rating of FORD MOTOR CO (FMC1.DE) is 3 / 10.