FORD MOTOR CO (1F.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1F - US3453708600 - Common Stock
11.586 EUR
+0.18 (+1.6%)
We assign a fundamental rating of 4 out of 10 to 1F. 1F was compared to 30 industry peers in the Automobiles industry. There are concerns on the financial health of 1F while its profitability can be described as average. 1F is not valued too expensively and it also shows a decent growth rate. Finally 1F also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- 1F had positive earnings in the past year.
- In the past year 1F had a positive cash flow from operations.
- In multiple years 1F reported negative net income over the last 5 years.
- Each year in the past 5 years 1F had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.56%, 1F is in line with its industry, outperforming 50.00% of the companies in the same industry.
- The Return On Equity of 1F (9.93%) is better than 84.38% of its industry peers.
- 1F's Return On Invested Capital of 1.45% is on the low side compared to the rest of the industry. 1F is outperformed by 65.63% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1F is below the industry average of 6.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 9.93% | ||
| ROIC | 1.45% |
ROA(3y)0.96%
ROA(5y)1.88%
ROE(3y)6.23%
ROE(5y)10.3%
ROIC(3y)2.46%
ROIC(5y)N/A
1.3 Margins
- 1F has a Profit Margin (2.48%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of 1F has grown nicely.
- The Operating Margin of 1F (1.91%) is worse than 65.63% of its industry peers.
- 1F's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 7.53%, 1F is doing worse than 84.38% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1F has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.91% | ||
| PM (TTM) | 2.48% | ||
| GM | 7.53% |
OM growth 3Y-5.26%
OM growth 5Y26.95%
PM growth 3Y-37.72%
PM growth 5Y153.85%
GM growth 3Y-11.41%
GM growth 5Y0.9%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1F is destroying value.
- The number of shares outstanding for 1F has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1F has less shares outstanding
- 1F has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.01, we must say that 1F is in the distress zone and has some risk of bankruptcy.
- 1F's Altman-Z score of 1.01 is on the low side compared to the rest of the industry. 1F is outperformed by 62.50% of its industry peers.
- 1F has a debt to FCF ratio of 13.61. This is a negative value and a sign of low solvency as 1F would need 13.61 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 13.61, 1F is in line with its industry, outperforming 59.38% of the companies in the same industry.
- A Debt/Equity ratio of 2.59 is on the high side and indicates that 1F has dependencies on debt financing.
- 1F has a worse Debt to Equity ratio (2.59) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 13.61 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.21
WACC6.89%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that 1F should not have too much problems paying its short term obligations.
- 1F's Current ratio of 1.12 is in line compared to the rest of the industry. 1F outperforms 46.88% of its industry peers.
- 1F has a Quick Ratio of 1.12. This is a bad value and indicates that 1F is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of 1F (0.98) is better than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- 1F shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.41%.
- Measured over the past years, 1F shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.29% on average per year.
- The Revenue has been growing slightly by 3.75% in the past year.
- 1F shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.48% yearly.
EPS 1Y (TTM)-22.41%
EPS 3Y0.92%
EPS 5Y9.29%
EPS Q2Q%-8.16%
Revenue 1Y (TTM)3.75%
Revenue growth 3Y10.71%
Revenue growth 5Y3.48%
Sales Q2Q%9.56%
3.2 Future
- 1F is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.35% yearly.
- Based on estimates for the next years, 1F will show a small growth in Revenue. The Revenue will grow by 2.44% on average per year.
EPS Next Y-40.78%
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
EPS Next 5Y9.35%
Revenue Next Year1.21%
Revenue Next 2Y0.69%
Revenue Next 3Y0.26%
Revenue Next 5Y2.44%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.99, the valuation of 1F can be described as very reasonable.
- Based on the Price/Earnings ratio, 1F is valued a bit cheaper than 78.13% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. 1F is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 8.95, which indicates a very decent valuation of 1F.
- 1F's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1F is cheaper than 62.50% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1F is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1F.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1F indicates a rather cheap valuation: 1F is cheaper than 93.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.52 | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
- A cheap valuation may be justified as 1F's earnings are expected to decrease with -3.25% in the coming years.
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
5. Dividend
5.1 Amount
- 1F has a Yearly Dividend Yield of 7.16%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.48, 1F pays a better dividend. On top of this 1F pays more dividend than 84.38% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1F pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.16% |
5.2 History
- The dividend of 1F has a limited annual growth rate of 5.56%.
Dividend Growth(5Y)5.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1F pays out 63.45% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 1F is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.45%
EPS Next 2Y-9.52%
EPS Next 3Y-3.25%
FORD MOTOR CO / 1F.MI FAQ
What is the ChartMill fundamental rating of FORD MOTOR CO (1F.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1F.MI.
What is the valuation status for 1F stock?
ChartMill assigns a valuation rating of 6 / 10 to FORD MOTOR CO (1F.MI). This can be considered as Fairly Valued.
What is the profitability of 1F stock?
FORD MOTOR CO (1F.MI) has a profitability rating of 4 / 10.
Can you provide the financial health for 1F stock?
The financial health rating of FORD MOTOR CO (1F.MI) is 3 / 10.
How sustainable is the dividend of FORD MOTOR CO (1F.MI) stock?
The dividend rating of FORD MOTOR CO (1F.MI) is 6 / 10 and the dividend payout ratio is 63.45%.