Ford Motor Co (F) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Ford Motor's EV/EBITDA of 1.7 is below its 5-year median of 1.7.

P/B below the industry

Ford Motor's price-to-book of 1.32 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading below fair value

The share price of $12.25 is below our fair value estimate of $18.71.

Margin of safety over 20%

The price is 34.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -1.4% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

Ford Motor raised its full-year 2026 Adjusted free cash flow outlook on Jul 28, 2026.

Gross margin slipping

Gross margin was 8.4% over the last twelve months, against 13.4% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was -146%, below the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense -5.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.08 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.83; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Ford Motor paid dividends worth 3.7% of the share price over the last twelve months.

Yield below Treasuries

The 3.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Ford Motor yields 3.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 46.7% of free cash flow.