Is Ford stock worth buying?
Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Ford Motor's earnings over the next few years are expected to increase by 69%, indicating a highly optimistic future ahead.
To be fair, it wouldn't be prudent to expect Ford to reach $100 anytime soon, and even Toyota Motors (TM) - which is the most valuable legacy automaker - has a market cap below $300 billion. Another analogy, however, could be the comparison with Tesla (TSLA), which currently has a market cap of around $700 billion.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Ford Motor is paying out an acceptable 55% of its profit, a common payout level among most companies.
"The Risk Score is a relevant measure for the assessment of a stock attractiveness. Ford Motor Company shows a Risk Score of 7.00. 0 corresponds to a very high risk and 10 corresponds to a very low risk." The Risk Score for Ford Motor Company is significantly higher than its peer group's.
Ford shares have underperformed the market in 2023, and they trade at a cheap valuation. Weak demand and rising costs have led management to abandon its EV investments for now. The lack of an economic moat should be a major red flag for long-term investors.
Ford Motor's analyst rating consensus is a Hold. This is based on the ratings of 14 Wall Streets Analysts.
With its 4-star rating, we believe Ford's stock is undervalued compared with our long-term fair value estimate. We are maintaining our fair value estimate at $19 per share. We think buying Ford's stock may require investor patience as management restructures the Ford Blue segment while scaling up the Model e business.
The top shareholders of Ford are William Clay Ford, James D. Farley, James P. Hackett, Vanguard Group Inc., BlackRock Inc.
Last fall Ford agreed to a big raise for striking members of the United Auto Workers union. On Tuesday, they gave their shareholders an even bigger raise. The company announced it would give shareholders a second, supplemental dividend that will more than double the regular dividend they usually receive.
At a segment level, the outlook is for full-year 2024 EBIT of at least $8 billion to $9 billion from Ford Pro and about $7 billion to $7.5 billion from Ford Blue; an EBIT loss of $5.0 billion to $5.5 billion for Ford Model e; and earnings before taxes of about $1.5 billion from Ford Credit.
Is Ford a good stock to own right now?
Ford Motor Company - Buy
Valuation metrics show that Ford Motor Company may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of F, demonstrate its potential to outperform the market. It currently has a Growth Score of F.
Investors simply can't form a Ford investment thesis without considering its healthy dividend. Ford declared a first-quarter regular dividend of $0.15 per share, making its forward yield almost 5%. It gets better, though. Ford also announced a supplemental dividend of $0.18 per share -- a cherry on top for investors.
Key Takeaways. Many of today's large, well-known corporations once traded as penny stocks, and some still have had quite low stock prices. A few examples of ex-penny stocks are Ford Motor Company and General Motors, Sirius XM Radio, and Blackberry.
On balance, GM stock is a little more popular than Ford stock on Wall Street. About 65% of analysts covering GM stock rate shares Buy, while about 48% rate Ford shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 55%.
There's the cash-burning EV division, supply chain issues, and UAW strikes over worker contracts. The latter is more of a short-term concern, but the first two could cause lasting issues if not addressed properly. That said, it's hard to ignore Ford's low valuation at the moment.
Ford stock is trading sharply down after the automaker reported earnings that fell short of estimates. While Ford was the first of the Detroit automakers to reach a tentative deal with the UAW, the new contract will raise Ford's already-high costs if ratified.
Ford stock price stood at $12.44
According to the latest long-term forecast, Ford price will hit $15 by the end of 2024 and then $17 by the middle of 2025. Ford will rise to $20 within the year of 2026, $25 in 2028, $30 in 2029, $35 in 2033 and $40 in 2035.
Ford Motor Co (NYSE:F) recently announced a dividend of $0.15 per share, payable on 2024-03-01, with the ex-dividend date set for 2024-02-15. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates.
As of 2024-03-29, the Intrinsic Value of Ford Motor Co (F) is 1.06 USD. This Ford valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 13.28 USD, the upside of Ford Motor Co is -92%. The range of the Intrinsic Value is (11.74) - 60.32 USD.
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Is Ford stock expected to grow?
According to our current F stock forecast, the value of Ford Motor shares will rise by 1.91% and reach $ 13.15 per share by March 25, 2024.
That's despite the fact they still control the family business, which is now the 19th largest company in America, according to Fortune. Read on as we look at the lives of some of the key living members of the Ford family, who were collectively worth $2 billion (£1.7bn) according to data shared by Forbes in 2015.
The company is listed on the New York Stock Exchange and is controlled by the Ford family; they have minority ownership but the majority of the voting power.
| Holder | Shares | Date Reported |
|---|---|---|
| Vanguard Group Inc | 339,899,562 | Dec 30, 2023 |
| Blackrock Inc. | 280,877,926 | Dec 30, 2023 |
| State Street Corporation | 173,925,221 | Dec 30, 2023 |
| Newport Trust Company, LLC | 155,177,214 | Dec 30, 2023 |
Chief Financial Officer John Lawler said about 58,000 UAW-represented workers will get profit-sharing checks averaging $10,400 on March 14. The checks will vary by number of hours worked. Ford said earlier that the strike cost the company $1.7 billion in lost profits and cut sales to dealers by 100,000 vehicles.
