Is ford worth investing in?

**Ford's Investment Prospects**: 1. **Financial Performance and Challenges**: - Ford's recent financials show a net income of $473 million and a diluted EPS of $0.12 for Q1 2025, reflecting a significant decline from the previous year. - The company's free cash flow stands at $1.86 billion, with operating cash flow at $3.68 billion and financing cash flow at -$6.12 billion. - Ford's dividend yield is 5.32%, with a payout ratio of -59.37%, indicating the company is not currently generating enough net income to sustain its dividend payments. |code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code| |---|---|---|---|---|---|---| |F|F.N|Ford Motor|20240724|8.449317823202248|5.724754937820044|169| |F|F.N|Ford Motor|20240725|8.449317823202248|5.6591039426523295|169| |F|F.N|Ford Motor|20240726|10.56164727900281|5.643932082216265|169| |F|F.N|Ford Motor|20240727|10.56164727900281||169| |F|F.N|Ford Motor|20240728|10.56164727900281||169| |F|F.N|Ford Motor|20240729|10.56164727900281|5.736203451407811|169| |F|F.N|Ford Motor|20240730|10.56164727900281|5.8261623616236164|169| |F|F.N|Ford Motor|20240731|10.56164727900281|5.836931608133087|169| |F|F.N|Ford Motor|20240801|10.56164727900281|5.907913938260057|169| |F|F.N|Ford Motor|20240802|10.56164727900281|6.296669990029911|169| |code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code| |---|---|---|---|---|---|---|---|---| |F|F.N|Ford Motor|2024 Q2|6.77852105E9|-6.041E9|5.508E9|8.42E8|169| |F|F.N|Ford Motor|2024 Q3|8.001304959E9|-5.588E9|5.502E9|3.311E9|169| |F|F.N|Ford Motor|2024 Q4|6.320584848E9|-6.861E9|3.028E9|3.79E9|169| |F|F.N|Ford Motor|2025 Q1|3.325362575E9|2.1E8|3.679E9|-6.12E9|169| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |F|F.N|Ford Motor|2024 Q2|6.348712016728212|4.7808E10|169| |F|F.N|Ford Motor|2024 Q3|5.467911691513892|4.6196E10|169| |F|F.N|Ford Motor|2024 Q4|4.893172620860711|4.8211E10|169| |F|F.N|Ford Motor|2025 Q1|-4.9512588540570865|4.0659E10|169| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |F|F.N|Ford Motor|2024 Q2|-9.077380952380953|1.833E9|169| |F|F.N|Ford Motor|2024 Q3|-23.614663256606992|8.96E8|169| |F|F.N|Ford Motor|2024 Q4|450.0956022944551|1.831E9|169| |F|F.N|Ford Motor|2025 Q1|-64.54272863568215|4.73E8|169| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |F|F.N|Ford Motor|2024 Q2|-2.1276595744680753|0.46|169| |F|F.N|Ford Motor|2024 Q3|-26.666666666666668|0.22|169| |F|F.N|Ford Motor|2025 Q1|-63.63636363636363|0.12|169| 2. **Market Position and Growth Prospects**: - Ford has a strong market capitalization of $44 billion and a history of operational profitability. - The company's vehicle delivery figures for Q2 show an increase of 14.2% year-over-year, primarily driven by robust demand for pickups. - The automotive industry, including Ford's market, is expected to face turbulence due to evolving market dynamics, technological advancements, and global challenges. 3. **Valuation Metrics**: - Ford's P/E ratio is 8.52, P/S ratio is 0.24, and P/B ratio is 0.96. - These metrics suggest that the stock may be undervalued compared to earnings, sales, and book value, which could be of interest to value investors. |code|Ticker|Name|Date|Closing Price|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---|---| |F|F.N|Ford Motor|20240724|13.67|13.855599|0.2999484638403157|1.2730405630088641|169| |F|F.N|Ford Motor|20240725|11.16|11.311521|0.24487380076502732|1.0182887617830008|169| |F|F.N|Ford Motor|20240726|11.19|11.341928|0.24553206367030966|1.021026097164138|169| |F|F.N|Ford Motor|20240729|11.01|11.159484|0.24158248623861567|1.0046020848773154|169| |F|F.N|Ford Motor|20240730|10.84|10.987176|0.23785232977534912|0.9890905177175385|169| |F|F.N|Ford Motor|20240731|10.82|10.966905|0.23741348783849422|0.9872656274634473|169| |F|F.N|Ford Motor|20240801|10.69|10.83514|0.23456101524893747|0.975403840811853|169| |F|F.N|Ford Motor|20240802|10.03|10.166179|0.2200792313327262|0.9151824624268368|169| |F|F.N|Ford Motor|20240805|9.71|9.841834|0.21305776034304796|0.8859842183613745|169| |F|F.N|Ford Motor|20240806|9.78|9.912784|0.2145937071220401|0.8923713342506943|169| 4. **Investor Sentiment and Stock Performance**: - Ford's stock has shown a 5.38% increase over the past month, outperforming the Auto-Tires-Trucks sector. - The stock has a Zacks Consensus EPS estimate of $0.33 for the upcoming earnings report, indicating a 36.17% decline from the same quarter last year. - Analysts have adjusted price targets, with some maintaining bullish ratings but lowering targets due to the challenging industry conditions. 5. **Strategic Considerations**: - Ford's strategic moves, such as regionalizing and improving its supply chain, could help enhance resilience and profitability. - The company's dividend yield is attractive, although its payout ratio is currently negative, which may be a concern. **Conclusion**: While Ford shows potential for investment, particularly given its dividend yield and recent stock performance, investors should be mindful of its financial challenges, including the need to generate sufficient net income to sustain dividends. The automotive industry's volatility and the potential impact of tariffs also pose risks. Therefore, a cautious approach is advisable, and potential investors should consider Ford's strategic responses to industry challenges and its ability to generate consistent profitability in the future.