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| Ford Motor Company - BidnessEtc |
Ford motor companystock price today as of 10th 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.
