Ford Motor Company Stock

Ford Motor Company - BidnessEtc

Ford motor companystock price today as of 10^th April is currently trading at $15.84 down 1.61% from last night’s closing price of $16.1. F stock has appreciated more than 175% in the last five years. The shares witnessed a 52 week high of $18.02 and a low of $12.65. Ford motor stock price has appreciated more than 2.5% year to date and analysts further expect the stock to gain 13% in the upcoming 12 months.

The company’s top selling vehicle F150 truck has been America’s top selling vehicle for the last 32 years. It has also been the top selling truck for around 37 years in US. According to Morgan Stanley, this situation can soon change. Tesla Motors could soon become the market leader in the US, once they start producing their own Li-ion batteries.

Tesla could more such batteries than anyone in the industry by the end of 2020. It will also be a boost for the US economy since more than 6500 people will be employed in this Mega project. So Ford could soon be taken away with the title of bestselling carmaker of the US as Tesla is expected to emerge as the next big thing in American carmaker industry. Ford needs to make sure that they continue introducing products that consumers want and high in innovation.

Ford has had a strong financial position in the recent quarters with Revenues for 4QFY13 up 25% from the comparable period last year. Their Net income for the same period rose 163%. Their Earnings are expected to grow in double digits i.e. more than 10% in the next five years.

The major problem in their fundamentals is a debt to equity ratio of 434% which means their operations are highly leveraged that is not good for the company. They have to make sure they have growth prospects and high sales of cars since they will have to pay interests on the debt. A high debt to equity ratio means there is a high repayment risk involved, so the company has to keep into account this important factor.

Ford motor stock graph has shown moderate growth in the past one year with share appreciation of more than 23%. One positive aspect about the company is that their sales from F150 truck have been increasing. We cannot ignore Ford’s dominance in the full-size truck market and moving forward, it will continue to grow as far as the trends show.