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6 hours ago
Is Ford Stock a Buy?
By: The Motley Fool | March 18, 2024
In the past decade, shares of Ford (NYSE: F) have produced a total return, including dividends, of just 30%. If one would've just invested in an S&P 500 index fund, their money would've more than tripled.
Ford bulls are hoping the next few years will end up differently. As of this writing, this auto stock trades 67% below its all-time high. Consequently, the forward P/E ratio is 6.5, which might be enticing for some investors.
So, is it time to buy Ford shares?
Latest business results
Shares of Ford jumped 6% right after it reported 2023 fourth-quarter financial results. It's safe to say that investors were pleased with how the business wrapped up the year.
Ford posted a 4.5% revenue increase in Q4 and an 11.4% rise for the full year. That yearly gain is a much faster clip than investors are used to seeing from this mature company. Ford also reported diluted earnings per share of $1.08 for the full year, a huge improvement from the $0.49 loss in 2022.
The results were good enough for the leadership team to approve a special one-time $0.18 dividend. The stock already yields a 4.95% payout, so this is music to the ears of income investors.
Last year, management made the decision to delay $12 billion of EV (electric vehicles)-related investments due to soft demand and pricing trends. That's not an encouraging sign for a segment that was supposed to be a key business driver in the years ahead. Ford model e, the EV division, reported just a 2% sales increase in Q4, with the operating loss coming in at $1.6 billion.
A bright spot has been Ford's commercial segment, which sells vehicles to enterprise customers. Revenue here was up 19% in 2023, with operating profit totaling $7.2 billion.
Wall Street consensus analyst estimates call for company revenue to rise by 5.8% in 2024. So, there is healthy demand that's forecasted on the horizon. Add this to the $2 billion in cost cuts that executives have planned, and it's understandable for shareholders to be optimistic.
Focus on the bigger picture
Bullish investors have a lot to cheer about right now. Ford appears to be performing well as of late, it pays a hefty dividend, and the stock is cheap. However, I don't think it makes for a solid investment over the long term.
For starters, just look at how intensely competitive the industry is. Ford battles it out against scaled domestic and international rivals that compete all on the same factors, like pricing and design, to draw in consumers. In the EV world, there are deep-pocketed and innovative industry rivals that aim to be at the forefront of the shift in the auto industry. This setup will continue to make it difficult for Ford to achieve outsized success.
Because Ford sells expensive vehicles, which are likely a person's second-biggest purchase (behind their home), the business is heavily reliant on a favorable macro backdrop in order to prosper. Consumers can delay buying a new car when times get tough.
Yes, the economy spends more time growing than contracting, but it's concerning how much changes in interest rates can impact Ford's financials. If the U.S. enters a recession in the near term, it will certainly hurt the business. The fact that no one can accurately predict what direction the economy is headed in adds uncertainty and risk.
I'm also not a fan of Ford's growth trends. Revenue in 2023 was 20% higher than 2013's total. That translates to a compound annual rate of just 1.8%. Given the mature nature of the industry, there's no reason to have confidence that things will pick up from this pace.
Ford hasn't been a worthwhile investment in the past. I think this will continue to be the case, so I'm not buying the stock.
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Trend-Setter
3 weeks ago
CRTG Eyes Major Corporate Shift, Teases Revolutionary Battery Tech & Potential Ford Partnership
CRTG is on the brink of unveiling a game-changing partnership or merger, alongside its revolutionary silicon anode battery technology. Learn how these developments could redefine the industry.As the business world holds its breath, CRTG is on the verge of announcing a significant corporate development, speculated to be a groundbreaking partnership or a strategic merger, causing its stock to soar in anticipation. This news comes alongside the company's innovative strides in battery technology, potentially setting a new industry standard. The postponed shareholder call, initially set for January 11, hints at the imminent finalization of this deal, promising to shake the tech and automotive sectors.
Revolutionary Battery Technology in the Spotlight
CRTG has made headlines with its pioneering silicon anode battery technology, capable of charging batteries to 80% capacity in a mere 6 minutes. This advancement is not only a game-changer in terms of charging speed but also in efficiency, boasting over 500 Wh/Kg. This figure effectively doubles the performance of Tesla's current batteries, positioning CRTG as a formidable contender in the battery technology race. The potential of this technology was further underscored in a podcast on October 26, 2023, where CEO Matt Kappers revealed that automotive giant Ford is set to test this new anode, marking a significant milestone for CRTG and the broader industry....
more here: https://bnnbreaking.com/finance-nav/crtg-eyes-major-corporate-shift-teases-revolutionary-battery-tech-potential-ford-partnership
https://thecoretecgroup.com/technology/endurion/
DiscoverGold
2 months ago
Ford recalls over 2M Explorer SUVs worldwide
By: Investing | January 24, 2024
Detroit automaker, Ford (NYSE:F) announced Wednesday that the company is recalling 2.24 million Ford Explorer SUVs worldwide made between 2011-2019 due to potential issues with trim retention clips not being properly engaged.
The recall includes 1.89 million SUVs in the United States, spanning model years 2011 through 2019. The National Highway Traffic Safety Administration (NHTSA) revealed that the trim on these vehicles could detach, prompting the safety recall.
Ford has stated there have been no reported crashes or injuries associated with the identified problem.
As part of the recall, authorized dealers will conduct inspections and replace the A-pillar trim as needed. The A-pillar is the metal support for the windshield, and Ford ceased using this particular part in 2019.
Approximately 5% of the affected vehicle population, as estimated by Ford, is expected to be impacted by this recall. Owners of the identified vehicles may observe gaps around a loose A-pillar trim or notice audible rattles or excessive wind noise from the A-pillar area.
Ford revealed that it had initially received an informal inquiry from the NHTSA in 2018 regarding detachments of exterior A-pillar trim parts on 2012-2014 Explorer vehicles. At the time, the automaker determined that the issue did not pose an unreasonable safety risk.
However, in 2021, Ford reopened a review of the matter and again concluded that a recall was unnecessary.
The situation took a turn in February 2023 when the NHTSA initiated a preliminary investigation to reassess the issue. In August of the same year, Ford received an inquiry from Transport Canada addressing the identical problem.
The NHTSA emphasized to Ford that the trim detachment while driving posed a road safety hazard to other vehicles.
Ford acknowledged being aware of 14,337 warranty reports alleging missing or detached exterior A-pillar trim parts.
Shares of F are down 2.68% in afternoon trading on Wednesday.
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2 months ago
Analyst: Ford Stock Facing an Uphill Battle
By: Schaeffer's Investment Research | January 16, 2024
• UBS downgraded Ford stock to "hold" from "buy"
• The shares are struggling early in 2024
Shares of automotive giant Ford Motor Co (NYSE:F) are 2.2% lower premarket and on track to open at $11.21 after a bear note from UBS. The Wall Street brokerage downgraded F to "neutral" from "buy," citing limited upside for the automaker as well as an uphill battle compared to its sector peers.
Coming into today, analysts were split on Ford stock, which leaves room for optimism to unwind. While eight of 16 covering brokerages recommend a "hold" or worse, the other eight rate the security a "buy" or better. What's more, price-target cuts could be on the way considering the 12-month average target price of $12.69 is a 10.7% premium to last night's close.
A shift in sentiment in the options pits could also add more headwinds. This is per F's 50-day call/put volume ratio of 2.77 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than 94% of readings from the past year, implying long calls were favored over the last 10 weeks.
On the charts, Ford stock has pulled back in recent sessions, losing four of its last five. While the equity closed at breakeven yesterday, the $11.20 level saved the session's dip and it looks like it's stepping up as support once again today. Three weeks into the year, F is already down 6% and has shed 19% over the last six months.
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2 months ago
Ford's 2023 US sales rise 7.1% on pickup truck, SUV demand
By: Investing | January 4, 2024
(Reuters) -Ford Motor on Thursday posted a 7.1% rise in 2023 U.S. sales, fueled by demand for its crossover SUVs and pickup trucks and easing supply chain constraints.
The automaker notched annual sales of 1.99 million units, compared with 1.86 million units a year earlier.
Overall, U.S. new vehicle sales last year finished at around 15.5 million units, of which electrified vehicles including hybrids made up nearly 17%, according to data from Wards Intelligence.
General Motors (NYSE:GM) on Wednesday reported higher U.S. sales and was able to retain its lead over Toyota (NYSE:TM) and other automakers.
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3 months ago
Ford Motor $F Chief EV, digital & design officer at Ford bought over $2,000,000 in stock on Friday
By: TrendSpider | December 12, 2023
• $F Chief EV, digital & design officer at Ford bought over $2,000,000 in stock on Friday.
Shares are down -20% over the last six months.
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3 months ago
Ford (F) to cut F-150 Lightning production by 50% in 2024
By: Investing | December 11, 2023
Automotive News reports Monday that Detroit automaker, Ford Motor (NYSE:F) has sent a memo to suppliers with plans to cut production on the company’s F-150 Lightning electric pickup truck by half in 2024.
"Changing market demand," was the reasoning given for the steep pullback.
The announcement arrives during a period when the entire industry is reducing its investment in electric vehicles due to slower-than-anticipated sales growth. Ford announced during the company’s 3Q call in early November that the company would be pulling back production of their popular electric Mustang Mach-E.
“We are also slowing down several investments, including making a decision with SK On to delay the second BlueOval SK JV battery plant in Kentucky.” Lawler added during the conference call in late October.
Ford CEO, Jim Farley announced early this month that the F-150 Lightning broke a monthly sales record in November after sales more than doubled (+113%) for the EV truck.
Ford sold more Lightning models in November than its entire sales for the third quarter, reaching 3,503 units sold.
As a pickup truck, the Lightning EV competes directly with Tesla’s (TSLA) freshly launched Cybertruck.
However, where the Cybertruck holds a starting price of $79.990, the F-150 Lightning starts at $49,995.
Shares of F are up 0.45% after market close on Monday.
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$Green$
3 months ago
'Let's Work Together,' Jim Farley Tells Elon Musk As Ford's Next-Gen Team On 'Similar Path' As Tesla With 48-V Architecture
Ford Motor Co (NYSE:F) CEO Jim Farley on Thursday said that the team developing its next-generation vehicles is on a 'similar path' as EV giant Tesla Inc (NASDAQ:TSLA) with its 48-volt architecture. The CEO informed this via X hours after confirming the receipt of a document on high-volt architecture from rival CEO Elon Musk.
What Happened: 'Great to read the document and realize that our next-gen team has been on a similar path,' Farley wrote on X. 'Let's work together to help the supply base move into the 48V future as well.'
Great to read the document and realize that our next-gen team has been on a similar path. Let's work together to help the supply base move into the 48V future as well.
â?? Jim Farley (@jimfarley98) December 7, 2023
Tesla Investor Relations Head Martin Viecha also chimed into the conversation and said, 'Amazing to see this. I've been reading about the transition to 48V for almost 20 years. It's great to see that it's finally happening.'
Amazing to see this. I've been reading about transition to 48V for almost 20 years. It's great to see that it's finally happening
â?? Martin Viecha (@MartinViecha) December 7, 2023
Automakers have been using 12-volt architecture for decades. The new technology in Tesla's Cybertruck, however, involves the use of a 48-volt electrical system.
Earlier this week, Musk sent a document to Farley that reportedly delves into the nitty-gritty of implementing a 48-volt architecture, from the essential components to the potential impact on range and power delivery. The 48-volt architecture allows for faster charging, and better performance as well as the steer-by-wire feature on the Cybertruck.
Ford's Next-Gen Vehicle: Ford announced its next-gen electric truck codenamed Project T3 in March. The company intends to build the truck at its EV and battery manufacturing campus in West Tennessee in 2025.
During Ford's third-quarter earnings call, Farley called the gen-2 truck "one of the most thrilling vehicles he saw in his career," and added that the vehicle has stunning performance, a super flexible cabin that "feels like a lounge" and offers an immersive digital experience.
"Take the wheels off this truck, and it's still a mind-blowing product and a digital experience that totally is immersive and personalized," Farley then said. "I'd take this truck seven days of the week over a Cybertruck."
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read Next: Rivian Trims Battery Team by Nearly 8% To Focus On R2 Platform, Stays Silent On Reported Layoff Of Lead Cell Engineer
Image via photos on Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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3 months ago
Ford says unlikely Mustang Mach-E EV will qualify for federal tax credits in January
By: Investing | December 6, 2023
(Reuters) -Ford Motor said on Wednesday it is unlikely Mustang Mach-E electric vehicles currently in dealer showrooms will qualify for federal tax credits beginning in January.
The U.S. Treasury issued guidance last week detailing new battery sourcing restrictions that take effect Jan. 1 aimed at weaning the U.S. EV supply chain away from China. The current model Mach-E currently qualifies for a $3,750 federal tax credit.
Ford (NYSE:F) has sold 35,908 Mach-E EVs in the U.S. in the first 11 months of the year, up 3.5% over the same period last year. In October, Ford said it was cutting some Mach-E production.
Ford also said in October it was postponing about $12 billion in EV investments, including delaying its second battery plant in Kentucky.
Ford also said in October it was temporarily cutting one of three shifts at the Michigan plant that builds its electric F-150 lightning pickup truck, citing multiple constraints, including supply chain issues.
Ford told dealers according to a bulletin seen by Reuters about the tax credit and said the expiriation is "an excellent motivator to purchase before the end of the year. This is a great time to reach out to customers in your pipeline to close the sale and ensure they are able to receive the credit."
Ford also told dealers that incentives for 2023 model Mach-E and F-150 Lightning sales and leases would be extended.
CarsDirect reported the EV tax credit news earlier.
General Motors (NYSE:GM) said Friday that it expects many of its electric vehicles to qualify for U.S. tax credits next year after new stricter rules limiting Chinese battery content take effect on Jan. 1.
In December 2021, Ford had said it expected to triple the output of its all-electric Mustang Mach-E to over 200,000 units per year by 2023 for North America and Europe.
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3 months ago
Ford's US vehicle sales slip 0.5% in November
By: Investing | December 4, 2023
(Reuters) -Ford Motor posted a 0.5% drop in U.S. new vehicle sales for November on Monday, as the automaker worked to restart some of its key plants following a lengthy workers' strike that impacted vehicle production.
Ford (NYSE:F) reached a deal with the United Auto Workers (UAW) union in late October, ending an over month-long strike the company said will cost it $1.7 billion. Sales also fell 5.3% in October, although analysts said the Detroit Three automakers had built up inventory in anticipation of the strike.
Ford's CFO John Lawler said in October restarting the plants would be complicated after the deal, which UAW workers ratified in November.
The automaker said in November that all its affected plants had been restarted.
Sales of Ford's electric vehicles jumped 43.2%, to 8,958 units from a year ago, the automaker said on Monday.
Sales of its trucks slipped 2.8%, to 78,971 units, for the same period.
The company reported total sales of 145,559 vehicles in November, compared with 146,364 units last year.
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