Ford Motor Company shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Summary
● The company's MSCI ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company is in a robust financial situation considering its net cash and margin position.
● The company's attractive earnings multiples are brought to light by a P/E ratio at 16.88 for the current year.
● The stock, which is currently worth 2025 to 0.22 times its sales, is clearly overvalued in comparison with peers.
● The company's share price in relation to its net book value makes it look relatively cheap.
● The company has a low valuation given the cash flows generated by its activity.
● The company is one of the best yield companies with high dividend expectations.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
Weaknesses
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
● Over the past twelve months, analysts' opinions have been revised negatively.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
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Ford Motor Company is the biggest car manufacturer in the world. Net sales break down by activity as follows:
- car sales (92.9%): Ford and Lincoln brands;
- financing services (7.1%): primarily vehicle purchase financing.
Net sales are distributed geographically as follows: the United States (65.5%), Canada (7.8%), the United Kingdom (6.6%), Mexico (1.3%) and other (18.8%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
