Ford Motor’s Stunning Recovery in Face of Bad News Strengthens Buy Thesis

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Ford Motor ($NYSE:F) Company is a multinational automotive manufacturer that has been a leader in the industry for over a century. From the coronavirus pandemic to the economic recession, Ford has managed to stay afloat and even rebound in recent months, making it an attractive stock for investors. The resilience of Ford’s stock in the face of these tumultous times is nothing short of stunning. In May, the company’s stock price was nearly cut in half yet by late October, the stock had nearly tripled from its low point. Beyond the stock performance, Ford Credit’s strong liquidity, as well as its successful cost-reduction initiatives have helped it weather the storm and get back on track.

These impressive feats in the face of adversity only further bolsters the case for purchasing Ford Motor’s stocks. The company’s performance has been incredibly encouraging, and with its strong cash flow and low debt levels, investors can rest assured that their investments are safe. All in all, Ford Motor’s stunning recovery in the face of bad news strengthens the buy thesis for its stocks.

Market Price

On Monday, Ford Motor’s stock opened at $12.0 and closed at $11.9, down by 0.7% from the prior closing price of $12.0. While this may appear at first glance to be a disappointing development, a closer inspection reveals a remarkable turnaround story for this storied automotive giant. In the face of bad news from the auto industry, Ford Motor has managed to claw its way back to a position of stability and even growth.

This is evidenced by the company’s impressive financial performance over the past year, as well as its well-received strategic moves. Such developments strengthen the buy thesis for FORD MOTOR stock and are likely to encourage investors to continue to view it favorably. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Ford Motor. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Ford Motor. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Ford Motor. More…

Key Ratios Snapshot

Some of the financial key ratios for Ford Motor are shown below. More…

Analysis

At GoodWhale, we analyze FORD MOTOR‘s fundamentals and according to the Star Chart, it has a high health score of 7/10 when it comes to its cashflows and debt. This means that FORD MOTOR is capable to safely ride out any crisis without the risk of bankruptcy. In terms of financial performance, FORD MOTOR is strong in dividends, and medium in asset, growth, and profitability. This classification has pegged FORD MOTOR as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given its financial performance, investors who are looking for companies with stable cashflows and high dividend yields may be interested in FORD MOTOR. However, investors who are looking for high growth companies with reliable and consistent levels of profitability may not find FORD MOTOR to be an ideal investment option. More…

Peers

In the automotive industry, there is intense competition between Ford Motor Co and its main competitors General Motors Co, Tesla Inc, and Toyota Motor Corp. All four companies are vying for a share of the global market and are constantly innovating to stay ahead of the competition. Ford has been a leader in the industry for many years, but its rivals are constantly closing the gap.

– General Motors Co ($NYSE:GM)

General Motors Co is an American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services. The company operates through four business segments: GM North America, GM International, GM Cruise, and GM Financial. The company was founded in 1908 by William C. Durant and Charles Stewart Mott and has been publicly traded since 1910.

General Motors Co has a market capitalization of $49.94 billion as of 2022 and a return on equity of 10.52%. The company’s North American segment is its largest, accounting for about 60% of its total revenue. GM North America designs, builds, and sells cars, trucks, crossovers, and SUVs under the Chevrolet, Buick, GMC, Cadillac, and Holden brands. The company’s international segment consists of its operations in China, Europe, the Middle East, and Africa. GM Cruise is the company’s autonomous vehicle subsidiary. GM Financial provides automotive financing solutions through dealerships and digital channels.

– Tesla Inc ($NASDAQ:TSLA)

Founded in 2003, Tesla, Inc. is an American multinational corporation that specializes in electric vehicles, energy storage, and solar panel manufacturing. Based in Palo Alto, California, the company operates multiple production and assembly plants, notably Gigafactory 1 near Reno, Nevada, and its main vehicle manufacturing facility at Tesla Factory in Fremont, California. As of June 2020, Tesla sells the Model S sedan, the Model X SUV, the Model 3 sedan, the Model Y SUV, the Roadster sports car, the Semi truck, and the Cybertruck pickup truck. Tesla also offers vehicle service centers, supercharger stations, and Destination Charging stations.

Tesla’s market cap is $687.33B as of 2022. The company has a Return on Equity of 27.88%.

– Toyota Motor Corp ($TSE:7203)

Toyota Motor Corp is a Japanese multinational automotive manufacturer. As of 2012, Toyota Motor Corp was the largest automotive manufacturer in the world by production volume. The company produces vehicles under five brands, including the Toyota brand, Hino, Lexus, Ranz, and Daihatsu. It also has a majority stake in Subaru and minority stakes in Isuzu, Mazda, and Suzuki. In addition to vehicles, Toyota Motor Corp also manufactures engines, transmissions, and other automotive parts and components.

The company’s market capitalization is 27.48T as of 2022. Its return on equity is 11.32%.

Toyota Motor Corp is a leading manufacturer of automobiles. The company’s products include passenger cars, trucks, buses, and SUVs. Toyota vehicles are sold in more than 170 countries and regions worldwide. The company has manufacturing plants in Japan, North America, Europe, Asia, and Africa.

Summary

Ford Motor has seen a remarkable recovery despite a series of bad news. This has led analysts to suggest that the company is a strong buy.