Ford Motor Company's Ford Focus is now the most popular selling car in China with sales in excess of 403,600 units. Those sales include both the sedan and the hatch back versions of the Focus. In addition, Ford has started selling their newly redesigned 2015 Mustang, the No. 1 selling sports car in the US. Finally, Ford will begin selling, in the next few months, it's all aluminum body F-150 Truck, the number one selling vehicle in the United States for the last decade. |
The Company
Price $15.43 1yr Target $17.21 Analysts 17 1yr Cap Gain 11.53% Dividend $0.50 Yield 3.24% 1yr Est Tot Return 14.77% | Market Cap $59.39 Bil Beta 1.43 EPS (ttm) $1.53 Payout Ratio % EPS next yr $1.61 P/E 10.08 PEG 0.91 Forward P/E 9.60 | Debt/Equity 4.56 ROA 3.00% ROE 23.30% ROI 4.00% Sales $145.24 Bil Income $6.17 Bil Profit Margin 4.24% |
Revenues, Earnings and Dividends
And while mostly profitable, they continue to struggle with sales and profits (see below). Analysts estimates are finally moving in an upward direction and from an investing point of view, this is probably the best information that can be gathered from this data. The predictability and reliability of those estimates will greatly influence the future price of the stock and the amount of future distributions.
Year 2015 Est 2014 Est 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 | Revenues $145.95 Bil $137.04 Bil $146.91 Bil $133.55 Bil $135.60 Bil $128.95 Bil $116.28 Bil $146.27 Bil $172.45 Bil $160.12 Bil $176.89 Bil $171.65 Bil $165.06 Bil | Earnings $1.61 $1.12 $1.76 $1.42 $4.94 $1.66 $0.86 $-6.46 $-1.38 $-6.72 $0.77 $1.73 $0.27 | Dividends $0.60 $0.50 $0.42 $0.25 $0.05 $0.00 $0.00 $0.00 $0.00 $0.15 $0.40 $0.40 $0.40 | Payout Ratio 37.26% 44.64% 23.86% 17.60% 1.01% 0.00% 0.00% N/A N/A N/A 51.94% 23.12% 148.14% |
Revenue Growth Rate 1 yr = 10.00% 2 yr = 4.08% 3 yr = 4.39% 4 yr = 6.01% 5 yr = 0.08% | Earnings Growth Rate 1 yr = 23.94% 2 yr = -40.32% 3 yr = 1.94% 4 yr = 19.60% 5 yr = N/A | Dividend Growth Rate 1 yr = 68.00% 2 yr = 189.82% 3 yr = N/A 4 yr = N/A 5 yr = N/A |
Conclusion
I believe Ford will be able to sell the Mustang for as long as they want and it will continue to increase in sales almost indefinitely. I also believe that the Ford F-150 will eventually be not only the best selling vehicle in the US but the best selling vehicle in the world.
I also think that despite all the technology going into alternative fuels, Ford will eventually be the manufacturer of volume, along with Toyota. Other companies may have more advanced technologies but Ford has the manufacturing prowess to produce those technologies at the most affordable price.
As a conservative investor I don't see this security becoming a significant part of my portfolio but I do see it becoming an essential part. Automobiles are a critical part of the modern world and Ford has proven that it can survive and thrive in a world of stiff competition. I have started a position in this company and I will continue to add to that position as funds become available in the future.
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