February 14, 2016
NYSE: F
FORD MOTOR CO
BUY
A+
A
A-
HOLD
B+
B
Annual Dividend Rate
$0.60
B-
C+
C
Annual Dividend Yield
5.37%
SELL
C-
D+
D
Beta
1.37
Sector: Consumer Goods & Svcs
F BUSINESS DESCRIPTION
Ford Motor Company manufactures and distributes
automobiles worldwide. The company operates
through two sectors, Automotive and Financial
Services. The Automotive sector develops,
manufactures, distributes, and services vehicles,
parts, and accessories.
Weekly Price: (US$)
D-
E+
E
E-
F
Market Capitalization
$43.5 Billion
HOLD
52-Week Range
$10.44-$16.74
Sub-Industry: Automobile Manufacturers
SMA (50)
RATING SINCE
SMA (100)
01/27/2016
Price as of 2/11/2016
$11.17
Source: S&P
1 Year
2 Years
18
17
16
15
14
STOCK PERFORMANCE (%)
3 Mo.
Price Change
-21.95
1 Yr.
-31.27
3 Yr (Ann)
-5.18
13
12
GROWTH (%)
Last Qtr
12.35
3,492.30
4,600.00
Revenues
Net Income
EPS
12 Mo.
3.83
106.65
111.53
3 Yr CAGR
3.85
5.15
5.13
11
Rating History
BUY
Volume in Millions
400
RETURN ON EQUITY (%)
F
NA
12.84
27.11
Q4 2015
Q4 2014
Q4 2013
Ind Avg
-1.05
6.59
10.46
S&P 500
12.28
14.59
13.97
6.77
10.53
20.18
F
Ind Avg
S&P 500
2016
0
2014
Q4 0.47
Q3 0.48
Q1 0.23
The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500
and the Automobiles industry. The net income increased by 3492.3% when compared to the same quarter one
year prior, rising from $52.00 million to $1,868.00 million.
Q2 0.47
Q4 0.01
Q3 0.21
Q1 0.24
Q2 0.32
Q4 0.74
Q3 0.31
Q2 0.30
2015
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
HIGHLIGHTS
FORD MOTOR CO reported significant earnings per share improvement in the most recent quarter compared
to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share
growth over the past year. We feel that this trend should continue. This trend suggests that the performance
of the business is improving. During the past fiscal year, FORD MOTOR CO increased its bottom line by
earning $1.65 versus $0.78 in the prior year. This year, the market expects an improvement in earnings ($1.95
versus $1.65).
EPS ANALYSIS¹ ($)
Q1 0.40
2014
RECOMMENDATION
We rate FORD MOTOR CO (F) a HOLD. The primary factors that have impacted our rating are mixed - some
indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a
positive or negative performance for this stock relative to most other stocks. The company's strengths can
be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in
net income and revenue growth. However, as a counter to these strengths, we find that the stock has had a
generally disappointing performance in the past year.
P/E COMPARISON
2013
200
Despite its growing revenue, the company underperformed as compared with the industry average of 18.0%.
Since the same quarter one year prior, revenues rose by 12.4%. Growth in the company's revenue appears to
have helped boost the earnings per share.
2015
NA = not available NM = not meaningful
1 Compustat fiscal year convention is used for all fundamental
data items.
F's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net
result is that it is down by 31.27%, which is also worse that the performance of the S&P 500 Index. Investors
have so far failed to pay much attention to the earnings improvements the company has managed to achieve
over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past
year should not necessarily be interpreted as a negative; it could be one of the factors that may help make
the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 14, 2016
PAGE 1
February 14, 2016
NYSE: F
FORD MOTOR CO
Sector: Consumer Goods & Svcs Automobile Manufacturers Source: S&P
Annual Dividend Rate
$0.60
Annual Dividend Yield
5.37%
PEER GROUP ANALYSIS
30%
V
FA
AB
OR
LE
R
VO
FA
-5%
LE
AB
Revenue Growth (TTM)
UN
WGO
TM
GM
-10%
Companies with higher EBITDA margins and
revenue growth rates are outperforming companies
with lower EBITDA margins and revenue growth
rates. Companies for this scatter plot have a market
capitalization between $453.8 Million and $175.4
Billion. Companies with NA or NM values do not
appear.
*EBITDA – Earnings Before Interest, Taxes, Depreciation and
Amortization.
REVENUE GROWTH AND EARNINGS YIELD
30%
AB
OR
LE
R
VO
FA
-5%
LE
AB
Revenue Growth (TTM)
UN
-5%
TM
HOG
Consumer choice in vehicles is more than ever being influenced by fuel efficiency. Automakers are exploring
alternate fuels such as ethanol and electric fuel cells and are delivering hybrid gasoline-electric vehicles and
pure-electric car for sale. The new cars are lighter, provide better fuel efficiency, enhanced safety features,
and many come with tax credits from the government to make costs competitive. Having an auto industry is
considered to be in the strategic interest of America and was bailed-out to help it survive the Great
Recession.
PEER GROUP: Automobiles
F
WGO
US congress toughened the Corporate Average Fuel Economy (CAFE) regulations in 2007 that no longer grant
exemptions to light trucks classified as SUVs or passenger vans unless they exceed 10,000 lbs. In the near
future, the standard is to be modified to accommodate many larger vehicles.
Manufacturers have recognized growing demand from developing economies and the opportunity to increase
auto parts sourcing from these economies.
HMC
FCAU
Huge health care and fringe benefits provided to big three employees give foreign competitors a strong
advantage. All three are negotiating new labor contracts with the United Auto Workers (UAW) union. With
these on-going negotiations, the big three hope to reduce the profit-per-vehicle gap. Reduced sales, different
platforms for parts, high raw material costs and tough exchange rates are other hurdles facing the industry.
The motorcycle industry is reeling under pressures such as volatile raw material costs, high gasoline prices
and reduced consumer spending. Harley’s heavy motorcycle sales have remained relatively flat, but light
motorcycle sales have been hurt by tough economic conditions.
V
FA
THO
Price as of 2/11/2016
$11.17
20%
EBITDA Margin (TTM)
TSLA
52-Week Range
$10.44-$16.74
Surging oil prices have shifted demand away from SUVs and light trucks to more fuel-efficient options. This
change in consumer preferences has supported German, Japanese and Korean manufacturers, whose
market share has consequently expanded. The big three are trying to adapt their product lines to changing
preferences.
HMC
THO
Market Capitalization
$43.5 Billion
INDUSTRY ANALYSIS
The automobile industry is comprised of companies that design, manufacture, engineer, assemble and market
automobiles and motorcycles as well as provide leasing and financial services. Industry performance is
closely linked with overall economic performance. Major players include General Motors (GM), Ford Motor
Company (F) and Chrysler. This group is commonly referred to as Detroit’s big three. BMW, Daimler (DAI),
Honda (HMC), Hyundai, Mazda, Nissan, Subaru, Toyota (TM) and Harley-Davidson (HOG) are other prominent
players. There are also niche players such as Winnebago Industries (WGO) for motor- homes and Tesla
Motors (TSLA) for high-end electric cars.
REVENUE GROWTH AND EBITDA MARGIN*
TSLA
Beta
1.37
GM
25%
Earnings Yield (TTM)
Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -3.8% and
26.5%. Companies with NA or NM values do not
appear.
Ticker
F
FCAU
HOG
WGO
HMC
GM
THO
TSLA
TM
Recent
Company Name
Price ($)
FORD MOTOR CO
11.17
FIAT CHRYSLER AUTOMOBILES NV 5.99
HARLEY-DAVIDSON INC
38.12
WINNEBAGO INDUSTRIES
16.82
HONDA MOTOR CO LTD
24.85
GENERAL MOTORS CO
26.90
THOR INDUSTRIES INC
48.06
TESLA MOTORS INC
150.47
TOYOTA MOTOR CORP
105.08
Market
Cap ($M)
43,548
7,697
7,314
454
45,014
41,547
2,522
19,704
175,378
Price/
Earnings
6.77
99.83
10.53
11.36
10.31
4.49
11.90
NM
8.50
Net Sales
TTM ($M)
149,607.00
120,095.11
5,995.40
966.33
124,554.90
152,356.00
4,115.18
4,046.02
237,384.00
Net Income
TTM ($M)
6,586.00
409.38
752.21
39.87
4,342.82
9,687.00
210.96
-888.66
19,390.00
The peer group comparison is based on Major Automobile Manufacturers companies of comparable size.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 14, 2016
PAGE 2
February 14, 2016
NYSE: F
FORD MOTOR CO
Sector: Consumer Goods & Svcs Automobile Manufacturers Source: S&P
Annual Dividend Rate
$0.60
Annual Dividend Yield
5.37%
COMPANY DESCRIPTION
Ford Motor Company manufactures and distributes
automobiles worldwide. The company operates through
two sectors, Automotive and Financial Services. The
Automotive sector develops, manufactures, distributes,
and services vehicles, parts, and accessories. It offers
vehicles primarily under the Ford and Lincoln brand
names. This sector markets and sells its products
through distributors and dealers, as well as through
dealerships to fleet customers, including commercial
fleet customers, daily rental car companies, and
governments. The Financial Services sector offers
various automotive financing products to and through
automotive dealers. It provides financing products,
including retail installment sale contracts for new and
used vehicles; and direct financing leases for new
vehicles to retail customers, government entities, daily
rental car companies, and fleet customers. This sector
also offers wholesale loans to dealers to finance the
purchase of vehicle inventory; and loans to dealers to
finance working capital and improvement of dealership
facilities, purchase dealership real estate, and other
dealer vehicle programs. The company was founded in
1903 and is based in Dearborn, Michigan.
FORD MOTOR CO
One American Road
Dearborn, MI 48126
USA
Phone: 313-322-3000
http://www.ford.com
Employees: 187000
Beta
1.37
Market Capitalization
$43.5 Billion
52-Week Range
$10.44-$16.74
Price as of 2/11/2016
$11.17
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of F shares. It is provided in order to give you a deeper understanding of our rating
methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR
SCORE
4.5
Growth
out of 5 stars
weak
Measures the growth of both the company's income statement and
cash flow. On this factor, F has a growth score better than 80% of the
stocks we rate.
strong
2.0
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 30% of the companies we
cover.
strong
3.0
Efficiency
out of 5 stars
weak
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 50% of the companies we review.
strong
2.5
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is less volatile than 40% of the stocks we monitor.
strong
2.0
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 30% of the companies we analyze.
strong
4.5
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. The company's
dividend is higher than 80% of the companies we track.
strong
THESTREET RATINGS RESEARCH METHODOLOGY
TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 14, 2016
PAGE 3
February 14, 2016
NYSE: F
FORD MOTOR CO
Sector: Consumer Goods & Svcs Automobile Manufacturers Source: S&P
Annual Dividend Rate
$0.60
Annual Dividend Yield
5.37%
Consensus EPS Estimates² ($)
IBES consensus estimates are provided by Thomson Financial
Beta
1.37
Market Capitalization
$43.5 Billion
52-Week Range
$10.44-$16.74
Price as of 2/11/2016
$11.17
FINANCIAL ANALYSIS
The company has grown its sales and net income during the past quarter when compared with the same
quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue
growth has not.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
0.48
1.95 E
2.05 E
Q1 FY16
2016(E)
2017(E)
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Q4 FY15
40,300.00
NA
NA
1,868.00
Q4 FY14
35,870.00
2,940.00
946.00
52.00
Q4 FY15
NA
NA
NA
NA
Q4 FY14
27,892.00
208,527.00
119,171.00
24,805.00
Q4 FY15
NA
NA
NA
NA
NA
NA
Q4 FY14
16.65%
8.19%
2.64%
0.69
1.52%
12.84%
Q4 FY15
NA
NA
NA
NA
Q4 FY14
NA
0.83
843.00
1.12
Q4 FY15
3,969
0.15
0.47
NA
NA
37,955,159
Q4 FY14
3,956
0.13
0.01
6.27
NA
31,711,793
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to
use of median consensus estimates.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 14, 2016
PAGE 4
February 14, 2016
NYSE: F
FORD MOTOR CO
Sector: Consumer Goods & Svcs Automobile Manufacturers Source: S&P
Annual Dividend Rate
$0.60
Annual Dividend Yield
5.37%
Beta
1.37
Market Capitalization
$43.5 Billion
52-Week Range
$10.44-$16.74
Price as of 2/11/2016
$11.17
VALUATION
HOLD. This stock's P/E ratio indicates a discount compared to an average of 10.53 for the Automobiles
industry and a significant discount compared to the S&P 500 average of 20.18. The price-to-sales ratio is well
below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and
other key valuation criteria, FORD MOTOR CO proves to trade at a discount to investment alternatives within
the industry.
2 Year Chart
$18
Price/Earnings
$16
F 6.77
Peers 10.53
• Discount. A lower P/E ratio than its peers can
signify a less expensive stock or lower growth
expectations.
• F is trading at a significant discount to its peers.
HOLD: $11.85
BUY: $14.96
RATINGS HISTORY
Our rating for FORD MOTOR CO was recently
downgraded from Buy to Hold on 1/27/2016. As of
2/11/2016, the stock was trading at a price of $11.17
which is 33.3% below its 52-week high of $16.74 and
7.0% above its 52-week low of $10.44.
$14
$12
2014
1
2
3
premium
4
5
2015
Price/Projected Earnings
MOST RECENT RATINGS CHANGES
Date
Price
Action
1/27/16
$11.85 Downgrade
2/11/14
$14.96 No Change
From
Buy
Buy
To
Hold
Buy
RATINGS DEFINITIONS &
DISTRIBUTION OF THESTREET RATINGS
(as of 2/11/2016)
32.90% Buy - We believe that this stock has the
opportunity to appreciate and produce a total return of
more than 10% over the next 12 months.
35.44% Hold - We do not believe this stock offers
conclusive evidence to warrant the purchase or sale of
shares at this time and that its likelihood of positive total
return is roughly in balance with the risk of loss.
31.66% Sell - We believe that this stock is likely to
decline by more than 10% over the next 12 months, with
the risk involved too great to compensate for any
possible returns.
Research Contact: 212-321-5381
Sales Contact: 866-321-8726
2
3
premium
Price reflects the closing price as of the date listed, if available
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
1
4
5
1
2
3
premium
4
5
Price/Sales
1
2
premium
3
4
5
Price to Earnings/Growth
4
5
discount
1
2
3
premium
4
5
discount
F 0.05
Peers 0.80
• Discount. The PEG ratio is the stock’s P/E divided
by the consensus estimate of long-term earnings
growth. Faster growth can justify higher price
multiples.
• F trades at a significant discount to its peers.
Earnings Growth
1
2
3
4
lower
5
higher
F 111.53
Peers 35.14
• Higher. Elevated earnings growth rates can lead to
capital appreciation and justify higher
price-to-earnings ratios.
• F is expected to have an earnings growth rate that
significantly exceeds its peers.
Sales Growth
discount
F 0.30
Peers 0.81
• Discount. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
• F is trading at a significant discount to its industry
on this measurement.
3
F NA
Peers 4.41
• Neutral. The P/CF ratio is the stock’s price divided
by the sum of the company's cash flow from
operations. It is useful for comparing companies
with different capital requirements or financing
structures.
• Ratio not available.
discount
F NA
Peers 2.18
• Neutral. A lower price-to-book ratio makes a stock
more attractive to investors seeking stocks with
lower market values per dollar of equity on the
balance sheet.
• Ratio not available.
2
premium
discount
F 5.45
Peers 12.49
• Discount. A lower price-to-projected earnings ratio
than its peers can signify a less expensive stock or
lower future growth expectations.
• F is trading at a significant discount to its peers.
Price/Book
1
Price/CashFlow
discount
1
2
3
lower
4
5
higher
F 3.83
Peers 4.14
• Average. Comparing a company's sales growth to
its industry helps to determine if the company is
adding or losing market share.
• F is keeping pace with its peers on the basis of
sales growth.
DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
other third-party data providers.
TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 14, 2016
PAGE 5