F(FORD)
- P/E: 10.9
- GAAP DILUTED EPS Y-O-Y GROWTH LAST QUARTER: -$.67
- SECTOR: CONSUMER DURABLES
- ASSETS-LIABILITIES: 1.21
- DIVIDEND: 4.79%
Ford is a well-known brand, largely
due to its successful models such as its F-series trucks, and its
position as the 2nd-best selling automobile maker in the US,
according to Statista. The stock has fallen steadily since its high
of $17.5 in 7/2014. While backed by some solid technical facts as a
function of its proven products, the company lacks growth in recent
years, which has led to its stock dropping in value.
According to the website Statista,
Ford is slightly behind GM in total revenue, and markedly behind
Volkswagen, the leading automotive manufacturer. Ford reported its
own global market share was down 1/10th of a percentage
point from the prior year. However, Ford does possess a consistently
best-selling brand in its F-series truck, the best-selling in its
category over the past 40 years. Additionally, Ford produces the 4th
most sold electronic vehicle in its electric version of the Fusion.
Therefore, Ford is innovating while retaining its principle business
foundation.
Ford reported a record operating
margin in its most recent quarter, although its year-over-year profit
was down, largely due to a pension adjustment of $3 billion. The
company reported its only record profits in its European business
sector. While this is not poor business performance, it certainly
does not represent phenomenal growth in every facet of its
operations.
The company has a solid ratio of
assets-liabilities at 1.21, showing that it is not overspending in
order to develop its business, and their operating margins are
increasing steadily. Unfortunately, Ford is regressing in EPS with
its low spending and reliance on its foundation products, and its
price-to-earnings multiple, while attractive in appearance, is a
function of its lack of growth. A solid dividend and a conservative
guidance creates the opportunity for the company to provide steady
yield and possibly an increase in future share price due to
surprising analysts by beating their own conservative guidance.
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