Ford Stock Buy Sell or Hold: A Comprehensive Investment Analysis

Investing in Ford stock can be a bit tricky, but understanding the company's financials can help you make a more informed decision.

Ford's revenue has been steadily increasing over the years, with a notable rise in 2020 due to strong demand for its electric vehicles, such as the Mustang Mach-E.

The company's net income has also been on the rise, reaching $14.3 billion in 2020, a significant improvement from the $3.7 billion loss in 2019.

Ford's market share in the US automotive market is around 14.6%, making it one of the largest players in the industry.

The company's cash reserves stand at $34.5 billion, providing a solid financial foundation for future investments and growth initiatives.

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The Ford stock price has been on a wild ride, plummeting 47.82% from $21.77 in early January to $12.20 as of October 10th.

Over the past year and a half, the stock has experienced significant volatility, with a 73% price increase from $14.53 in late May 2021 to $25 in early 2022.

The stock price fell to $10 in June 2022, only to recover slightly and reach $16.68 on August 16th, before falling back to $11 by late September.

Ford's trailing returns over the past 10 years have been relatively modest, with a 5.05% return compared to the industry average of 15.48%.

The high dividend yield of 5.7% is a major draw for income-seeking investors, significantly outpacing the average 1.3% yield of the S&P 500.

Ford's valuation is another compelling reason to buy and hold the stock, with a price-to-earnings ratio of 11, less than half that of the broader index of 500 large and profitable companies.

This low valuation is a result of the unfavorable qualities the business possesses, making it a more attractive option for investors looking for a bargain.

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Ford Fundamentals are a mixed bag, with some metrics exceeding the industry average and others falling short. The company's Return On Equity is a notable 0.13, outperforming the peer average of -0.31.

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The peer average for Return On Asset is a concerning -0.14, while Ford's is a relatively healthy 0.0115. Profit Margin is another area where Ford lags behind, with a negative 1.27% compared to the industry average.

Ford's Current Valuation is a substantial $159.53 billion, dwarfing the peer average of $16.62 billion. The company's Shares Outstanding total 3.89 billion, compared to the industry average of 571.82 million.

Insiders own a relatively small 0.36% of Ford's shares, while institutions hold a significant 59.11%. The Number Of Shares Shorted is a notable 117.58 million, which is higher than the industry average.

Ford's Price To Earning ratio is a relatively modest 6.14 X, compared to the industry average of 28.72 X. The Price To Book ratio is also lower, at 0.83 X versus 9.51 X.

The company's Revenue is a massive $184.99 billion, while the industry average is $9.43 billion. Gross Profit is $15.51 billion, and EBITDA is $14.24 billion, both of which are higher than the industry average.

Ford's Cash And Equivalents total $25.13 billion, and Cash Per Share is a healthy $7.95. Total Debt is a significant $160.86 billion, but the Debt To Equity ratio is relatively low at 3.08%.

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The company's Current Ratio is a solid 1.20 X, and Book Value Per Share is $11.31. Cash Flow From Operations is $15.42 billion, and the Short Ratio is a manageable 1.78 X.

Ford's Earnings Per Share is a respectable $1.46, and the Price To Earnings To Growth ratio is a relatively reasonable 3.22 X. The Target Price is $10.93.

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Ford's financial health is a crucial aspect to consider when deciding whether to buy, sell, or hold their stock. Revenue for Q2 2022 was a significant 50% increase from the previous year, reaching $40.1bn.

This substantial growth is a promising sign for investors. Total assets for the quarter came to $245.7m, a slight decrease from the previous year.

The company's basic earnings per share (EPS) for the quarter was $4.021, indicating a strong financial performance.

Ford's stock has shown resilience in the face of declining sales in the US market, where it fell 6% in 2022 compared to the previous year.

The company's efforts to adapt to changing consumer preferences have included investing in electric vehicles, with the Mustang Mach-E being a key player in this strategy.

Ford's revenue from electric vehicles has been increasing, with 2022 sales reaching $6.4 billion, up from $2.8 billion in 2021.

However, the company still faces stiff competition in the EV market, with rivals like Tesla and General Motors also investing heavily in electric vehicles.

Ford's focus on the commercial vehicle market has also been a key driver of its success, with revenue from this segment increasing by 10% in 2022.

The company's partnerships with technology companies like Volkswagen and Amazon have helped it stay ahead of the curve in terms of innovation.

Ford's stock price has been volatile in recent years, with a 52-week high of $23.54 and a 52-week low of $11.93, making it a potentially risky investment for some investors.

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Ford's stock price has been relatively stable in recent years, averaging around $12 per share. This stability is a result of the company's consistent revenue growth and strong brand recognition.

Ford's trading volume is moderate, with an average of 10 million shares traded daily. This level of activity suggests that investors are interested in buying and selling the stock, but not at an alarming rate.

Ford's stock price is influenced by various market and economic factors, including the overall health of the automotive industry and global economic trends.

Ford's stock price has been a bit of a rollercoaster ride lately. The mean return on Ford's stock is -0.19, indicating a slight decline in value.

Analysts are divided on the stock's potential, but some are optimistic about its long-term prospects. David Whiston from Morningstar believes Ford is undervalued and suggests that a recession sell-off could create buying opportunities.

The stock's value at risk is -2.9, which means there's a 1 in 20 chance it could drop that much. This is a relatively high risk, but it's also worth noting that the potential upside is 2.46.

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JPMorgan analyst Ryan Brinkman has a more positive outlook, giving Ford an "overweight" rating and a price target of $21 in December 2022. He highlights the company's efforts to refresh its vehicle lineup and right-size its international operations.

Ford's stock price has indeed tumbled since the start of the last year, but some analysts believe it's just business as usual. Danni Hewson from AJ Bell notes that the company has a special place in the hearts of US motorists and is making huge strides to set itself up for the next 50 years.

Here are some key statistics on Ford's stock:

With 17 analysts covering Ford, it's definitely a stock worth watching.

Stock prices are constantly changing, and it's essential to stay up-to-date on the current price of a stock.

On a specific day, like 2025-02-20, the stock price of Ford Motor (F-N) closed at $9.38.

Having a watchlist of stocks can help you monitor their daily prices and get important alerts.

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Insider Activity is a crucial aspect of understanding stock price movements. Insider trading can provide valuable insights into a company's performance and future prospects.

Ford Motor's CEO, Henry Ford III, was involved in some notable transactions on December 10, 2024. He sold 10,338 shares that day.

On the same day, Henry Ford III made two separate purchases of 20,676 shares and 3,446 shares, respectively. These transactions demonstrate his confidence in the company's future.

A closer look at the transactions reveals that Henry Ford III's total shares held on December 10, 2024, were 1,090,292. He also held 99,424 shares after selling 10,338 shares.

Other insiders, such as Andrew Frick and Marin Gjaja, also made significant transactions on November 14, 2024. Andrew Frick sold 8,299 shares and later bought 19,033 shares, while Marin Gjaja sold 48,372 shares and bought 46,154 shares.

Here's a summary of the notable insider transactions:

Keep in mind that insider activity can be a double-edged sword. While it can provide valuable insights, it can also be influenced by various factors, such as personal financial goals or market conditions.

Stock analysts have weighed in on Ford Motor, and the results are telling. 17 stock analysts published opinions about F-N in the last year, with 5 recommending to BUY the stock and 11 recommending to SELL the stock.

Ford's track record is disappointing, with a return on invested capital (ROIC) averaging just 2.7% in the past decade. This is lower than the company's weighted average cost of capital, indicating that Ford is likely destroying shareholder value.

The auto industry is known for requiring massive capital expenditures to maintain a competitive position, and Ford must spend heavily on research and development and manufacturing.

Ford's ROIC has averaged just 2.7% in the past decade, which is lower than its weighted average cost of capital, indicating the company is likely destroying shareholder value.

Investors should be wary of adding Ford stock to their portfolios or selling existing shares because the business lacks durable competitive advantages.

The auto industry requires massive ongoing capital expenditures, which can be a significant burden for companies like Ford.

Labor costs are also a major issue, with contract renegotiations every few years and the potential for strikes that can shut down factories.

The industry's anemic growth is another reason to avoid Ford, with only a 12% increase in passenger vehicle sales worldwide over the past 12 years.

The low valuation and high dividend yield may be tempting, but Ford's track record is disappointing, and investors should be prepared for returns that lag the overall market.

The Rating system is a way to gauge expert opinions on a stock.

Stockchase rating for a company is calculated based on the signals from stock experts.

A high score means experts mostly recommend buying the stock, while a low score means they mostly recommend selling it.

In the case of Ford Motor, 17 stock analysts published opinions about the company in the last year.

5 of these analysts recommended buying the stock, while 11 recommended selling it.

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