Ford Motor Co., headquartered in Dearborn, Michigan, employs 177,000 people and manufactures a range of vehicles, including electric and luxury models, while offering various services and financing options. Its operations are divided into segments focusing on internal combustion, electric vehicles, commercial services, and emerging business initiatives.
Based on our analysis, Ford Motor Company (NYSE: F) has received an undervalued rating of 4 out of 5 stars from Cashu, primarily due to its strong financial ratios compared to industry averages.
The Price-to-Earnings (PE) ratio of 8.53 is significantly lower than the sector average of 15.61, indicating that Ford's stock may be undervalued relative to its earnings potential. A lower PE ratio often suggests that the market has less confidence in the stock's future growth, despite strong underlying performance.
Ford's Price-to-Book (PB) ratio stands at 0.88, compared to the sector average of 1.97. This indicates that the stock is trading below its book value, suggesting potential for price appreciation as the market recognizes its true worth.
The company boasts a net profit margin of 3.18%, which is well above the sector's 0.09%. This strong margin reflects Ford's ability to convert sales into profit effectively. Additionally, the Return on Equity (ROE) ratio of 13.11 greatly outperforms the sector average of 1.09, demonstrating that Ford efficiently generates profit from its equity.
Ford also offers a compelling dividend yield of 6.98%, significantly higher than the sector average of 2.56%. This attractive yield may appeal to income-focused investors. Furthermore, its Return on Assets (ROA) of 2.06, compared to the sector's -0.10, indicates that Ford is utilizing its assets effectively to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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