Education
About Us
Working with TipRanks
Follow Us
Ford Motor (F)
NYSE:F
Top Page
Ford Motor
(NYSE:F)71Outperform
Positive Factors
Financial Performance
Ford Credit exceeded expectations with earnings 25% above consensus.
Product Strategy
Ford's latest 'Freedom of Choice' campaign offers a wide range of gas, hybrid, and electric products for both commercial and retail customers, with hybrid sales reaching a new record.
Negative Factors
Earnings Outlook
The 2024F EBIT outlook has been downgraded due to weaker performance in the Blue and Pro segments.
Market Performance
Ford is expected to underperform relative to its peers which reported upbeat earnings and management upgrades in 3Q24.
Profitability Concerns
Weak profitability is an overhang on valuations, contrasting with key peer GM which reported upbeat earnings and guidance upgrades.
Ford Motor (F) vs. S&P 500 (SPY)
Market Cap
$37.85B
Dividend Yield7.99%
Average Volume (3M)84.31M
Price to Earnings (P/E)6.5
Beta (1Y)1.49
Revenue Growth5.00%
EPS Growth35.92%
CountryUS
Employees171,000
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)1.46
Shares Outstanding3,892,595,700
10 Day Avg. Volume82,205,464
30 Day Avg. Volume84,313,330
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)3.10
P/FCF Ratio12.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.76Price Target Upside17.98% Upside
Rating ConsensusHold
Number of Analyst Covering14
Ford Motor Business Overview & Revenue Model
Company DescriptionFord Motor Company is a global automotive leader headquartered in Dearborn, Michigan. Founded in 1903, Ford designs, manufactures, markets, and services a full line of Ford trucks, utility vehicles, cars, and luxury vehicles under the Lincoln brand. The company operates across various sectors, including automotive, mobility, and Ford Credit. It is known for its iconic brands and innovative technology, focusing on producing fuel-efficient vehicles and expanding its electric vehicle offerings.
How the Company Makes MoneyFord Motor Company generates revenue primarily through the sale of vehicles under its Ford and Lincoln brands. The company earns money by manufacturing and selling cars, trucks, and SUVs to dealerships and consumers worldwide. Additionally, Ford Credit, the company's financial services division, contributes to revenue by offering financing products and services to dealerships and retail customers. Ford also benefits from partnerships and strategic alliances, particularly in technology and electric vehicle development, which enhance its market position and drive future growth.
Ford Motor Financial Statement Overview
Summary
Ford demonstrates solid revenue growth and efficient cash flow management. However, substantial leverage and moderate profitability suggest room for improvement in financial stability.Income Statement
Ford's income statement reflects solid revenue growth with a 5.0% increase from 2023 to 2024, following a significant rebound from 2022. The gross profit margin improved to 14.4% in 2024, indicating efficient cost management. However, the net profit margin is relatively low at 3.2%, suggesting room for enhancing profitability. The company's EBIT margin of 2.8% and consistent EBITDA margins highlight operational efficiency, albeit with some volatility due to industry cycles.75
Positive
Balance Sheet
Ford's balance sheet shows a high debt-to-equity ratio of 3.54, reflecting substantial leverage, which could be risky in economic downturns. The return on equity (ROE) is at a moderate 13.1%, indicating decent profitability relative to shareholder equity. With an equity ratio of 15.7%, Ford maintains a modest proportion of equity financing, which could affect financial flexibility.68
Positive
Cash Flow
Ford's cash flow statement demonstrates strong free cash flow in 2024, showing a significant recovery from 2023. The operating cash flow to net income ratio of 2.62 indicates robust cash generation from core operations. However, the free cash flow to net income ratio of 2.62 suggests effective cash management, supporting potential reinvestment and debt servicing.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 184.99B | 176.19B | 158.06B | 136.34B | 127.14B | Gross Profit |
| 26.56B | 16.16B | 23.66B | 21.69B | 14.39B | EBIT |
| 5.22B | 5.46B | 12.40B | 17.38B | 8.82B | EBITDA |
| 14.24B | 11.82B | 4.74B | 25.54B | 7.99B | Net Income Common Stockholders |
| 5.88B | 4.35B | -2.15B | 17.94B | -1.28B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 38.35B | 40.17B | 44.07B | 49.59B | 49.96B | Total Assets |
| 285.20B | 273.31B | 255.88B | 257.04B | 267.26B | Total Debt |
| 160.86B | 151.11B | 140.47B | 139.49B | 163.00B | Net Debt |
| 137.93B | 126.25B | 115.34B | 118.94B | 137.75B | Total Liabilities |
| 240.34B | 230.51B | 212.72B | 208.41B | 236.45B | Stockholders Equity |
| 44.84B | 42.77B | 43.24B | 48.52B | 30.69B |
| Cash Flow | Free Cash Flow | |||
| 6.74B | 6.68B | -13.00M | 9.56B | 18.53B | Operating Cash Flow |
| 15.42B | 14.92B | 6.85B | 15.79B | 24.27B | Investing Cash Flow |
| -24.37B | -17.63B | -4.35B | 2.75B | -18.61B | Financing Cash Flow |
| 7.49B | 2.58B | 2.51B | -23.50B | 2.31B |
Ford Motor Technical Analysis
Negative
9.12
Price Trends
9.50
Negative
9.95
Negative
10.46
Negative
Market Momentum
-0.06
Negative
42.35
Neutral
36.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For F, the sentiment is Negative. The current price of 9.12 is below the 20-day moving average (MA) of 9.27, below the 50-day MA of 9.50, and below the 200-day MA of 10.46, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 36.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for F.
Ford Motor Risk Analysis
Ford Motor disclosed 9 risk factors in its most recent earnings report. Ford Motor reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ford Motor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $915.58B | 133.46 | 9.73% | ― | 0.95% | -52.81% | |
76 Outperform | $236.40B | 7.20 | 14.45% | 2.65% | -0.59% | 7.56% | |
74 Outperform | $48.88B | 7.72 | 9.53% | 1.01% | 9.08% | -15.25% | |
73 Outperform | $45.09B | 6.46 | 7.98% | 2.67% | 4.37% | 6.93% | |
71 Outperform | $37.85B | 6.53 | 13.11% | 7.99% | 5.00% | 35.92% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
F
Ford Motor
9.12
-2.57
-21.98%
GM
General Motors
45.22
4.87
12.07%
HMC
Honda Motor Company
27.33
-8.45
-23.62%
TSLA
Tesla
272.04
91.30
50.51%
TM
Toyota Motor
180.66
-67.53
-27.21%
Ford Motor Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -5.88% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of strong financial performance, particularly in revenue and strategic growth in software services, while acknowledging significant challenges in the EV market and potential impacts from international trade policies.Highlights
Record-Breaking Revenue
Ford achieved a global revenue of $185 billion, marking the fourth consecutive year of top-line growth.
F-Series Leadership
The F-Series remained America's best-selling pickup and vehicle overall, enhancing Ford's position in the market.
Expansion of Software Services
Pro software subscriptions rose 27% to nearly 650,000, with telematics software growing 100%.
Strong Financial Position
Ford reported $28 billion in cash and $47 billion in liquidity, exceeding target cash conversion rates.
Ford Pro's Strong Performance
Ford Pro's revenue increased by 15% to $67 billion, with a 13.5% EBIT margin.
Positive Shareholder Returns
Ford declared a regular dividend of $0.15 per share and a supplemental dividend of $0.15 per share.
Lowlights
EV Market Challenges
Model e reported a 35% decrease in revenue and a 9% decline in wholesales due to pricing pressure.
Potential Tariff Impacts
Concerns over the impact of potential 25% tariffs on industry profits and consumer pricing.
First Quarter Guidance
Ford anticipates breakeven adjusted EBIT in Q1 2025 due to reduced wholesales and adverse exchange impacts.
Pricing Pressure in Key Segments
Pricing pressure noted in the Pro segment, especially around fleet and daily rental environments.
Company Guidance
During Ford Motor Company's fourth quarter 2024 earnings call, the company provided guidance for the fiscal year 2025, projecting an adjusted EBIT in the range of $7 billion to $8.5 billion. The company also anticipates adjusted free cash flow between $3.5 billion and $4.5 billion, with capital expenditures expected to be $8 billion to $9 billion. Ford plans to achieve at least $1 billion in net cost reductions, focusing on material costs and warranty expenses. The company highlighted the potential impact of tariffs and other policy changes, which could affect industry profits and pricing. Despite these challenges, Ford aims to leverage the strength of its Pro business, expecting EBIT of $7.5 billion to $8 billion, while managing losses in the Model e segment and maintaining Ford Blue's EBIT between $3.5 billion and $4 billion. The call emphasized Ford's commitment to improving cost efficiency, delivering new product launches, and increasing recurring revenue streams through its software and services business.Ford Motor Corporate Events
Executive/Board Changes
Ford Appoints New CFO Amid Leadership Changes
Neutral
Feb 5, 2025
On February 4, 2025, Ford Motor Company’s Board of Directors appointed Sherry House as the new Chief Financial Officer, effective February 6, 2025. Ms. House will succeed John Lawler, who remains Vice Chair of the company. Her previous roles include being the CFO of Lucid Motors and various positions at Waymo, bringing a wealth of financial expertise to Ford.
Financial Disclosures
Ford Motor Reports $0.7B Pre-Tax Pension Gain
Neutral
Jan 23, 2025
Ford Motor Company announced a pre-tax remeasurement gain of approximately $0.7 billion for its fourth quarter 2024 results related to pension and other postretirement employee benefits (OPEB) plans. The remeasurement, influenced by higher discount rates, is expected to increase net income by about $0.4 billion after taxes but will not affect the company’s adjusted EBIT or cash flow. Despite the gain, the underfunded status of Ford’s pension and OPEB plans is expected to decrease slightly by year-end 2024 compared to 2023.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.