 |
May 11, 2025 |
Ford Motor Company (NYSE: F)$10.43 USD ( As of 05/09/25 ) |
|
|||||||||||||
Data Overview
| 52 Week High-Low | $14.55 - $8.69 |
|---|---|
| 20 Day Average Volume | 111,530,256 |
| Beta | 1.53 |
| Market Cap | 41.34 B |
| Dividend / Div Yld | $0.60 / 5.75% |
| Industry | Automotive - Domestic |
| Industry Rank | 193 / 246 (Bottom 22%) |
| Current Ratio | 1.13 |
| Debt/Capital | 69.30% |
| Net Margin | 2.74% |
| Price/Book (P/B) | 0.93 |
| Price/Cash Flow (P/CF) | 3.11 |
| Earnings Yield | 11.22% |
| Debt/Equity | 2.26 |
| Value Score |  |
|---|---|
| P/E (F1) | 8.89 |
| P/E (F1) Rel to Industry | -22.41 |
| PEG Ratio | 0.84 |
| P/S (F1) | 0.23 |
| P/S (TTM) | 0.23 |
| P/CFO | 3.11 |
| P/CFO Rel to Industry | 0.10 |
| EV/EBITDA Annual | 7.52 |
| Growth Score |  |
|---|---|
| Proj. EPS Growth (F1/F0) | -36.21% |
| Hist. EPS Growth (Q0/Q-1) | 26.13% |
| Qtr CFO Growth | -21.60 |
| 2 Yr CFO Growth | 249.70 |
| Return on Equity (ROE) | 13.49% |
| (NI - CFO) / Total Assets | -3.39 |
| Asset Turnover | 0.65 |
| Momentum Score | |
|---|---|
| 1 week Volume change | -16.65% |
| 1 week Price Cng Rel to Industry | 0.98% |
| (F1) EPS Est 1 week change | -6.44% |
| (F1) EPS Est 4 week change | -12.68% |
| (F1) EPS Est 12 week change | -19.45% |
| (Q1) EPS Est 1 week change | 12.48% |
Summary
Ford reported fourth-quarter 2017 adjusted earnings per share of 39 cents, missing the Zacks Consensus Estimate of 42 cents per share. During the quarter, the company logged automotive revenues of $41.3 billion, beating the Zacks Consensuses Estimate of $37.2 billion. The Zacks Consensus Estimate of Ford’s quarterly earnings estimate has been going down of late. Moreover, year to date, Ford’s shares have underperformed in the industry it belongs. The company has been making frequent vehicles recalls to fix safety issues, which is adding to its expenses and is also reducing consumers’ confidence in a brand. Also, automotive segment’s profit before tax declined year over year due to high commodity prices, unfavorable exchange rate and higher warranty costs.
Elements of the Zacks Rank
Agreement Estimate Revisions (60 days)
|
50% Q1 (Current Qtr)Revisions: 4 Up: 2 Down: 2 |
80% Q2 (Next Qtr)Revisions: 5 Up: 1 Down: 4 |
88% F1 (Current Year)Revisions: 8 Up: 1 Down: 7 |
83% F2 (Next Year)Revisions: 6 Up: 1 Down: 5 |
Magnitude Consensus Estimate Trend (60 days)
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
Upside Zacks Consensus Estimate vs. Most Accurate Estimate
|
|
|
|
|
Surprise Reported Earnings History
|
|
|
|
Average 4 Qtr Surprise |
||||||||||||||||||||||||
The data on the front page and all the charts in the report represent market data as of 05/09/25, while the report's text is as of 01/29/2018
Overview
Ford Motor Company (F) is an automotive, financial services and mobility company with operations in the United States and across the world. The company manufactures and distributes automobiles in 200 markets across six continents.
In Sep 2016, Ford signed an agreement to acquire San Francisco-based crowd-sourced shuttle service, Chariot. Through this acquisition, the company is planning to venture into the global shuttle services business.
Ford has three reportable segments:
The Automotive segment (which generated roughly 93.2% of the company’s total revenue in 2016) is engaged in the design, development, manufacture, sale and service of cars and trucks as well as service parts, and accessories. The segment covers five regional business units: North America, South America, Europe, Middle East & Africa, and Asia Pacific.
The Financial Services segment (6.8%) deals with vehicle-related financing and leasing activities at Ford Credit.
All Other consists of the Central Treasury Operations (formerly Other Automotive) and Ford Smart Mobility LLC operating segments. The Central Treasury Operations is primarily involved in decision making for investments, risk management activities, and providing financing for the Automotive segment. Ford Smart Mobility is a new subsidiary that was established by Ford to design, build, grow, and invest in emerging mobility services.
Note: The report will be further updated after the release of 10K.
Reasons To Sell:
Frequent product recalls and rising structural expenses are some concerns for Ford.
In the past one year, Ford has underperformed the industry it belongs to. Share price of the company lost 2.2% over this period, while the industry grew 18.6%.
Like some of its peers, Ford too has been recalling its vehicles regularly to fix safety issues. Frequent product recalls not only reduce consumers’ confidence in a brand, but also add to its expenses.
Ford’s investment for the production of its next generation cars can be beneficial in the long-run but are likely to create short-term strains on the financials of the company.
Fourth-quarter automotive segment’s profit before tax declined year over year due to high commodity prices, unfavorable exchange rate and higher warranty costs. In fact, commodity prices, mainly of metals, are increasing since fourth-quarter 2016. Again, recalls in North America and Europe are mainly responsible for high warranty costs. For the year 2018, adjusted EBIT margin of the Automotive segment is likely to be flat or lower year over year. For the year 2018, adjusted EBIT margin of the Mobility services segment is likely to be lower year over year on account of higher investments in autonomous vehicles and mobility services / capabilities.
Ford has been replacing its older models and rolling out new ones. This involves substantial expenditure, which resulted in high structural costs in 2013. The costs increased in 2014 too due to higher volumes as well as the expansion and improvement of the company’s line-ups. Structural costs increased in 2015 as well, mainly related to manufacturing volume and the new UAW agreement. It went up by $1.5 billion in 2016.
Risks
- Ford is working with various major global cities to develop mobility solutions for the unique transportation challenges faced by them. Toward this goal, the company has signed an agreement to acquire a San Francisco-based crowd-sourced shuttle service called Chariot and teamed up with bike-sharing provider Motivate. Ford is making efforts to speed up delivery of mobility products and services to customers and to augment shareholders’ value. Ford’s aim is to deliver a wide spectrum of products and services that improves transportation system at all layers.
- During the quarter, Ford witnessed a $2.6 billion growth in automotive revenues year over year amounting to $41.3 billion. North America, South America and Europe and Middle East & Africa regions reported a growth in wholesale volume sales whereas Middle East & Africa and Asia Pacific regions reported a dip in wholesale volume sales. Sales of F-Series was 896,764 for the year 2017,a rise of 9.3% from that of 2016.
- Ford’s accelerated product transformation plan “One Ford” is positively impacting the company. The foremost mission is to produce common vehicle models for all of its global segments. Another key objective of the plan is to shift focus from trucks to small cars and deliver more vehicles from fewer core platforms. The company expects utility vehicles to comprise 29% of its global sales by 2020. Ford expects to meet the challenges in Europe and South America by executing its “One Ford” plan.
- In the long run, Ford expects all automotive business units and Ford Credit to be profitable. The company anticipates annual global sales to increase 45%–55% to nearly 9.4 million by 2020. Automotive operating margin is expected to improve to 8% by 2020, while the company aims to achieve automotive operating margin of 8%–9% in the long term. The company expects that the total Middle East & Africa car market will improve by 40% to 5.5 million vehicles by 2020, and its sales in the region will surpass the industry sales growth. Ford is also targeting positive operating-related cash flow, capital spending of about $9 billion per annum and investment grade profile of “A” by 2020.
- Ford is rapidly working on bringing autonomous vehicle technology to the market. The company will add several driver-assist technologies to its vehicles over the next five years. In Feb 2017, Ford announced plans to invest around $1 billion over the next five years in Argo AI – an artificial intelligence company. The investment will be utilized for the development of the virtual driver system for Ford’s autonomous vehicle.
Last Earnings Report
Quarter Ending 03/2025
| Report Date | May 05, 2025 |
|---|---|
| Sales Surprise | 5.49% |
| EPS Surprise | 14.71% |
| Quarterly EPS | 0.14 |
| Annual EPS (TTM) | 1.49 |
Ford's Q4 Earnings Fall Short of Estimates, Improve Y/Y
Ford posted adjusted earnings per share of 39 cents in the fourth quarter of 2017. The reported figure was 9 cents higher than the year-ago figure. However, earnings missed the Zacks Consensus Estimate of 42 cents per share.
During the quarter, adjusted pre-tax profit came in at $1.7 billion, reflecting a decrease of $0.4 billion from the year-ago quarter.
Fourth-quarter net income came in at $2.4 billion, reflecting an increase of $3.2 billion from the year-ago quarter.
During the quarter, Ford logged automotive revenues of $41.3 billion. The Zacks Consensuses Estimate for revenues was $37.2 billion.
For full-year 2017, adjusted earnings per share came in at $1.78, increasing 2 cents from 2016. The Zacks Consensuses Estimate for revenues for 2017 was $1.82.
For full-year 2017, revenues came in at $156.8 billion, reflecting an increase of $5 billion from 2016. The Zacks Consensuses Estimate for revenues for 2017 was $147.5 billion.
Ford Automotive
During the quarter, wholesale volumes at the Ford Automotive segment increased 42,000 units to 1.75 million. Pre-tax profit decreased to $1.4 billion from $2 billion in the year-ago quarter.
In North America, during the quarter, revenues increased $1 billion to $24.1 billion. Wholesale volumes increased 36,000 year over year to 739,000 units. Further, pre-tax profit decreased to $1.6 billion from $1.9 billion in fourth-quarter 2016.
In South America, revenues increased $0.3 billion to $1.7 billion. Wholesale volumes rose 17,000 to 107,000 units. Pre-tax loss amounted to $197 million.
In Europe, revenues increased $0.9 billion to $8.1 billion. Wholesale volumes increased 26,000 units year over year to 416,000 units. The region incurred pre-tax profit of $56 million during the quarter.
In the Middle East & Africa segment, revenues declined $0.1 billion year over year to $0.8 billion. Wholesale volumes plunged 6,000 units to 35,000 units. The region incurred pre-tax loss of $70 million.
In the Asia-Pacific region, revenues increased $0.4 billion to $83.8 billion. Wholesale volumes declined 31,000 to 452,000 units. The Asia-Pacific region generated pre-tax profit of $5 million.
Financial Services
Ford Credit generated pre-tax profit of $610 million, up from $398 million in the prior-year quarter.
Financial Position
Ford had cash and cash equivalents of $9.6 billion as of Dec 301, 2017, up from $8.1 billion as of Dec 31, 2016.
2018 Guidance
The company expects 2018 adjusted EPS in the range of $1.45-$1.70 and an effective tax rate of 15%.
Recent News
Ford to Boost Mobility Services With Acquisitions – Jan 25, 2018
Ford is making efforts to speed up delivery of mobility products and services to customers and to augment shareholders’ value. Ford’s aim is to deliver a wide spectrum of products and services that improves transportation system at all layers. In 2018, the auto maker anticipates to expand and start businesses in the areas of transportation operating system, connectivity, ride sharing, non-emergency medical transportation and vehicle management as a service.
In order to speed up this transition, the company is set to acquire Autonomic, a technology company engaged in scale, design and leverage for transportation industry solutions. The company is also set to TransLoc, which provides demand-response technology for city-owned microtransit solutions.
Ford Provides 2017 Preliminary Results & 2018 Outlook – Jan 16, 2018
Ford has come up with preliminary results for 2017 and guidance for the year 2018. The company has announced earnings per share of $1.95 for 2017, a rise of 80 cents from 2016. Also, the company has announced 2017 adjusted earnings per share of $1.78, up by 2 cents from 2016. For 2018, the company expects adjusted EPS to be in the range of $1.45–$1.70. Rise in commodity prices and adverse effect of exchange rate can be attributed to this unfavorable outlook.
The company also expects earnings of Ford Credit for 2018 to decrease because of higher interest rates. Prices of a few metals such as aluminum and steel are adversely affecting the company.
Also, only a couple of days ago, Ford announced that it is set to raise its planned investment in electric vehicles (EVs) to $11 billion by 2022. Moreover, the auto giant has plans of launching 40 hybrid and fully EVs by that time. The latest proposed investment amount is considerably higher than the previously committed $4.5 billion by 2020.
Ford Halts Production at 5 Plants to Reduce Inventory – Sep 24, 2017
Ford plans to temporarily shut down five assembly plants in North America, per a Reuters’ news. The decision to halt production at its Kansas City, Flat Rock and Wayne assembly plants and two plants in Mexico for a total of about 10 weeks has been taken to lower the inventory of slow-selling models.
In Mexico, production will remain closed at the Cuautitlan Fiesta line for three weeks and at Hermosillo Fusion line for two weeks. The Kansas City plant has already been shut for a period of two weeks. The Flat Rock, MI facility will remain idle for two weeks. The Wayne, MI plant will be idled for one week.
Ford Partners Mahindra to Power Electric Vehicles in India – Sep 18, 2017
Ford has agreed to collaborate with Mahindra Group, an Indian automotive manufacturing company. This strategic alliance aims at using the former’s skill and global reach with the latter’s presence in India.
In an age of unparalleled changes in the global auto industry, both the companies will be exploiting their mutual strengths to drive profitable growth in India and other emerging markets.
For a period of three years, teams from both companies will synergize to work on areas that include mobility programs, electrifications, connected vehicle projects, product development and many more aspects.
Industry Analysis(1)Zacks Industry Rank: NA
Top Peers
| General Motors Company (GM) |
|
| Tesla, Inc. (TSLA) |
|
| PACCAR Inc. (PCAR) |
|
| Polaris Inc. (PII) |
|
| Harley-Davidson, Inc. (HOG) |
|
| Rivian Automotive, Inc. (RIVN) |
|
| VinFast Auto Ltd. (VFS) |
|
| Fox Factory Holding Corp. (FOXF) |
|
| Blue Bird Corporation (BLBD) |
|
Industry Comparison Automotive - Domestic | Position in Industry: 4 of 15 |
Industry Peers |
| F |
|
|---|---|
| Market Cap | 41.34 B |
| # of Analysts | 7 |
| Dividend Yield | 5.75% |
| Value Score | |
| Cash/Price | 0.85 |
| EV/EBITDA | 7.52 |
| PEG Ratio | 0.84 |
| Price/Book (P/B) | 0.93 |
| Price/Cash Flow (P/CF) | 3.11 |
| P/E (F1) | 8.89 |
| Price/Sales (P/S) | 0.23 |
| Earnings Yield | 11.22% |
| Debt/Equity | 2.26 |
| Cash Flow ($/share) | 3.35 |
| Growth Score | |
| Hist. EPS Growth (3-5 yrs) | 26.13% |
| Proj. EPS Growth (F1/F0) | -36.21% |
| Curr. Cash Flow Growth | -9.37% |
| Hist. Cash Flow Growth (3-5 yrs) | 0.05% |
| Current Ratio | 1.13 |
| Debt/Capital | 69.30% |
| Net Margin | 2.74% |
| Return on Equity | 13.49% |
| Sales/Assets | 0.65 |
| Proj. Sales Growth (F1/F0) | -5.80% |
| Momentum Score | |
| Daily Price Chg | 0.00% |
| 1 Week Price Chg | 0.98% |
| 4 Week Price Chg | 11.79% |
| 12 Week Price Chg | 10.02% |
| 52 Week Price Chg | -13.01% |
| 20 Day Average Volume | 111,530,256 |
| (F1) EPS Est Wkly Chg | -6.44% |
| (F1) EPS Est Mthly Chg | -12.68% |
| (F1) EPS Est Qtrly Chg | -19.45% |
| (Q1) EPS Est Mthly Chg | 2.73% |
| X Industry | S&P 500 |
|---|---|
| 11.34 M | 35.43 B |
| 5.5 | 20 |
| 0.00% | 1.59% |
| - | - |
| 0.46 | 0.04 |
| -0.34 | 13.72 |
| 1.05 | 2.26 |
| 0.91 | 3.40 |
| 6.73 | 13.69 |
| 9.55 | 18.62 |
| 0.75 | 2.93 |
| -3.00% | 5.36% |
| 0.03 | 0.58 |
| -0.79 | 9.00 |
| - | - |
| 26.20% | 9.81% |
| 19.12% | 6.71% |
| -18.11% | 6.74% |
| 2.20% | 7.07% |
| 1.48 | 1.19 |
| 38.39% | 38.56% |
| -81.81% | 12.48% |
| -29.68% | 16.92% |
| 0.36 | 0.52 |
| 0.00% | 4.24% |
| - | - |
| 0.00% | -0.07% |
| 0.26% | -0.47% |
| 0.83% | 5.53% |
| -19.32% | -7.44% |
| -66.14% | 8.37% |
| 169,357 | 2,492,271 |
| 0.00% | 0.00% |
| 0.00% | -0.16% |
| -15.82% | -0.85% |
| -6.74% | -0.68% |
| GM | TSLA | PCAR |
|---|---|---|
| 45.67 B | 960.68 B | 47.59 B |
| 8 | 10 | 7 |
| 1.01% | 0.00% | 1.46% |
|  |  |
| 0.60 | 0.04 | 0.18 |
| 4.35 | 63.16 | 7.55 |
| 1.25 | 8.49 | 3.21 |
| 0.69 | 12.75 | 2.64 |
| 2.04 | 77.00 | 10.16 |
| 4.99 | 161.44 | 15.18 |
| 0.24 | 10.04 | 1.47 |
| 20.04% | 0.62% | 6.59% |
| 1.46 | 0.07 | 0.55 |
| 23.29 | 3.87 | 8.93 |
|  | |
| 23.92% | 71.14% | 35.69% |
| -10.14% | -23.66% | -24.40% |
| 2.95% | -9.32% | -15.76% |
| 1.79% | 57.34% | 6.20% |
| 1.21 | 2.00 | 2.35 |
| 59.29% | 6.63% | 35.61% |
| 3.08% | 6.66% | 10.73% |
| 14.30% | 9.02% | 20.79% |
| 0.66 | 0.80 | 0.76 |
| -5.54% | 1.22% | -10.00% |
| | |
| 4.13% | 3.11% | 3.20% |
| 5.11% | 1.53% | 1.98% |
| 8.87% | 18.21% | 0.21% |
| -1.80% | -16.18% | -14.44% |
| 5.07% | 77.04% | -16.96% |
| 11,368,082 | 104,170,208 | 3,163,515 |
| 0.15% | -10.61% | 0.00% |
| -19.06% | -36.24% | -17.69% |
| -18.73% | -45.36% | -21.39% |
| -13.64% | -41.42% | -23.79% |
Zacks Stock Rating System
We offer two rating systems that take into account investors' holding horizons; Zacks Rank and Zacks Recommendation. Each provides valuable insights into the future profitability of the stock and can be used separately or in combination with each other depending on your investment style.
Zacks Recommendation
This rating system that has an excellent track record of predicting performance over the next 6 to 12 months. The foundation for the quantitatively determined Zacks Recommendation is trends in the company's estimate revisions and earnings outlook.
The Zacks Recommendation is broken down into 3 Levels; Outperform, Neutral and Underperform. Unlike most Wall Street firms, we have an excellent balance between the number of Outperform and Neutral recommendations.
Our team of 70 analysts are fully versed in the benefits of earnings estimate revisions and how that is harnessed through the Zacks quantitative rating system. But we have given our analysts the ability to override the Zacks Recommendation for the 1200 stocks that they follow. The reason for the analyst over-rides is that there are often factors such as valuation, industry conditions and management effectiveness that a trained investment professional can spot better than a quantitative model.
Zacks Rank
The Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon. The underlying driver for the quantitatively-determined Zacks Rank is the same as the Zacks Recommendation, and reflects trends in earnings estimate revisions.
| Value Score |
|
| Growth Score |
|
| Momentum Score |
|
| VGM Score |
|
Zacks Style Score Education
The Zacks Style Score is as a complementary indicator to the Zacks Rank, giving investors a way to focus on the best Zacks Rank stocks that best fit their own stock picking preferences.
Academic research has proven that stocks with the best Growth, Value, and Momentum characteristics outperform the market. The Zacks Style Scores rate stocks on each of these individual styles and assigns a rating of A, B, C, D and F. An A, is better than a B; a B is better than a C; and so on.
As an investor, you want to buy stocks with the highest probability of success. That means buying stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Style Score of an A or a B.
Disclosures
This report contains independent commentary to be used for informational purposes only. The analysts contributing to this report do not hold any shares of this stock. The analysts contributing to this report do not serve on the board of the company that issued this stock. The EPS and revenue forecasts are the Zacks Consensus estimates, unless otherwise indicated in the report’s first-page footnote. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. ZIR certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report.
Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. Any opinions expressed herein are subject to change.
ZIR is not an investment advisor and the report should not be construed as advice designed to meet the particular investment needs of any investor. Prior to making any investment decision, you are advised to consult with your broker, investment advisor, or other appropriate tax or financial professional to determine the suitability of any investment. This report and others like it are published regularly and not in response to episodic market activity or events affecting the securities industry.
This report is not to be construed as an offer or the solicitation of an offer to buy or sell the securities herein mentioned. ZIR or its officers, employees or customers may have a position long or short in the securities mentioned and buy or sell the securities from time to time. ZIR is not a broker-dealer. ZIR may enter into arms-length agreements with broker-dealers to provide this research to their clients. Zacks and its staff are not involved in investment banking activities for the stock issuer covered in this report.
ZIR uses the following rating system for the securities it covers. Outperform- ZIR expects that the subject company will outperform the broader U.S. equities markets over the next six to twelve months. Neutral- ZIR expects that the company will perform in line with the broader U.S. equities markets over the next six to twelve months. Underperform- ZIR expects the company will underperform the broader U.S. equities markets over the next six to twelve months.
No part of this report can be reprinted, republished or transmitted electronically without the prior written authorization of ZIR.