Ford Profitability Analysis

F Stock  USD 13.06  0.62  4.98%   
Based on the measurements of profitability obtained from Ford's financial statements, Ford's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Ford's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1990-03-31
Previous Quarter
1.2 B
Current Value
-526 M
Quarterly Volatility
2.8 B
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The Ford's current Operating Cash Flow Sales Ratio is estimated to increase to 0.12, while Price To Sales Ratio is projected to decrease to 0.17. At this time, Ford's Change To Netincome is most likely to increase significantly in the upcoming years. The Ford's current Net Income Per E B T is estimated to increase to 1.79, while Income Before Tax is projected to decrease to roughly 3.4 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.08710.0917
Notably Down
Slightly volatile
Operating Profit Margin0.02940.031
Notably Down
Pretty Stable
For Ford profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ford to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ford Motor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ford's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ford Motor over time as well as its relative position and ranking within its peers.
  
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Is Ford's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ford. If investors know Ford will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ford listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.938
Dividend Share
0.6
Earnings Share
1.08
Revenue Per Share
44.07
Quarterly Revenue Growth
0.045
The market value of Ford Motor is measured differently than its book value, which is the value of Ford that is recorded on the company's balance sheet. Investors also form their own opinion of Ford's value that differs from its market value or its book value, called intrinsic value, which is Ford's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ford's market value can be influenced by many factors that don't directly affect Ford's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ford's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ford is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ford's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Ford Motor Book Value Per Share vs. Cash Flow From Operations Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ford's current stock value. Our valuation model uses many indicators to compare Ford value to that of its competitors to determine the firm's financial worth.
Ford Motor is one of the top stocks in cash flow from operations category among related companies. It is rated # 5 in book value per share category among related companies . The ratio of Cash Flow From Operations to Book Value Per Share for Ford Motor is about  1,385,916,016 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Ford by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ford's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ford's earnings, one of the primary drivers of an investment's value.

Ford Book Value Per Share vs. Cash Flow From Operations

Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

Ford

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
14.92 B
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

Ford

Book Value per Share

 = 

Common Equity

Average Shares

 = 
10.76 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

Ford Book Value Per Share Comparison

Ford is currently under evaluation in book value per share category among related companies.

Ford Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ford, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ford will eventually generate negative long term returns. The profitability progress is the general direction of Ford's change in net profit over the period of time. It can combine multiple indicators of Ford, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-9 B-9.5 B
Operating Income5.5 B6.8 B
Income Before TaxB3.4 B
Total Other Income Expense Net-1.5 B-1.6 B
Net Income4.3 B3.8 B
Income Tax Expense-362 M-343.9 M
Net Loss-2.3 B-2.2 B
Net Income From Continuing Ops6.1 B4.8 B
Non Operating Income Net Other-9.2 B-8.8 B
Interest Income1.4 B1.2 B
Net Interest Income145 M152.2 M
Change To Netincome8.9 B9.4 B
Net Income Per E B T 1.10  1.79 

Ford Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ford. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ford position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ford's important profitability drivers and their relationship over time.

Ford Profitability Trends

Ford profitability trend refers to the progression of profit or loss within a business. An upward trend means that Ford's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Ford's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Ford Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Ford different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Ford in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Ford's future profitability.

Use Ford in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ford position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ford will appreciate offsetting losses from the drop in the long position's value.

Ford Pair Trading

Ford Motor Pair Trading Analysis

The ability to find closely correlated positions to Ford could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ford when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ford - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ford Motor to buy it.
The correlation of Ford is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ford moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ford Motor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ford can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ford position

In addition to having Ford in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Sovereign ETFs theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sovereign ETFs Theme or any other thematic opportunities.
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When determining whether Ford Motor is a strong investment it is important to analyze Ford's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Ford's future performance. For an informed investment choice regarding Ford Stock, refer to the following important reports:
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Note that the Ford Motor information on this page should be used as a complementary analysis to other Ford's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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When running Ford's price analysis, check to measure Ford's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ford is operating at the current time. Most of Ford's value examination focuses on studying past and present price action to predict the probability of Ford's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ford's price. Additionally, you may evaluate how the addition of Ford to your portfolios can decrease your overall portfolio volatility.
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To fully project Ford's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ford Motor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ford's income statement, its balance sheet, and the statement of cash flows.
Potential Ford investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ford investors may work on each financial statement separately, they are all related. The changes in Ford's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ford's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.