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1. Company Snapshot

1.a. Company Description

Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide.It operates through Ford Blue, Ford Model e, and Ford Pro; Ford Next; and Ford Credit segments.The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments.


It also engages in vehicle-related financing and leasing activities to and through automotive dealers.In addition, the company provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers.Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs.


The company was incorporated in 1903 and is based in Dearborn, Michigan.

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1.b. Last Insights on F

Ford Motor Company's recent performance was driven by strong Q3 earnings, with revenue of $50.53B and EPS of $0.45 beating estimates. The company's solid execution, despite EV losses, drove a 4% post-earnings rally. Additionally, several institutional investors increased their holdings in the company, including Exchange Traded Concepts LLC, which boosted its stake by 987.6%, and D.A. Davidson & CO., which increased its position by 59.7%. Ford's guidance cut couldn't stop the stock from reaching a new 52-week high.

1.c. Company Highlights

2. Ford Motor's Q4 2025 Earnings: A Closer Look

Ford Motor Company's Q4 2025 financial performance was marked by revenue growth, with the company achieving $187 billion in revenue for the full year. The adjusted EBIT for the full year was $6.8 billion, despite a $2 billion headwind from Novelis fires and a net tariff impact of $2 billion. The company's EPS came out at $0.13, missing analyst estimates of $0.1793. The adjusted EBIT margin was 3.6%, indicating a challenging year for the company.

Publication Date: Feb -12

📋 Highlights
  • Revenue Growth:: Ford achieved $187 billion in revenue, with U.S. market share rising to 13.2%, the highest in six years.
  • Adjusted EBIT Performance:: Full-year adjusted EBIT reached $6.8 billion despite $2 billion headwinds from Novelis fires and tariffs.
  • Financial Strength:: Generated $3.5 billion free cash flow and ended the year with $29 billion cash and $50 billion liquidity.
  • Future EBIT Targets:: Projects 2026 adjusted EBIT of $8–10 billion, driven by cost reductions and software/services growth.
  • Cost Improvements:: $1.5 billion in cost savings in 2025, with $1 billion expected in 2026, reducing Novelis-related losses by $1 billion.

Financial Performance

The company's financial performance was impacted by various factors, including the Novelis fires and tariff costs. However, the company made significant progress in quality and cost reduction, with material and warranty costs lowered. The U.S. market share climbed to 13.2%, the highest in six years. As Sherry House, CFO, mentioned, the company generated $3.5 billion of free cash flow and ended the year with close to $29 billion in cash and nearly $50 billion in liquidity.

Valuation Metrics

To understand what's priced in, we can look at various valuation metrics. The company's P/E Ratio is -6.74, indicating that the stock may be undervalued. The P/S Ratio is 0.29, which is relatively low compared to industry peers. The EV/EBITDA ratio is -20.91, suggesting that the company's enterprise value is high relative to its EBITDA. The Dividend Yield is 5.42%, which is attractive for income investors.

Guidance and Outlook

For 2026, Ford expects adjusted EBIT of $8 billion to $10 billion, adjusted free cash flow of $5 billion to $6 billion, and capital expenditures of $9.5 billion to $10.5 billion. The company expects lower tariff costs, material and warranty cost reductions, and growth in software and physical services profit. Ford Pro is expected to deliver EBIT of $6.5 billion to $7.5 billion, while Ford Model e is expected to lose $4 billion to $4.5 billion.

Segment Performance

The company's segment performance was mixed, with Ford Blue expected to generate EBIT of $4 to $4.5 billion, and Ford Credit's EBT expected to be about $2.5 billion. The company's focus on improving quality and cost, as well as returns and cash flow, is expected to drive future growth.

3. NewsRoom

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General Motors or Ford: Which Auto Biggie is a Better Buy Now?

14:01

Source: zacks.com

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Lansforsakringar Fondforvaltning AB publ Buys 75,395 Shares of Ford Motor Company $F

11:06

Source: defenseworld.net

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Buy the Dip: Meet the Supercharged Automotive Stock That Can Beat the S&P 500 Over the Next 5 Years (Hint: It's Not Tesla or Ford)

Feb -22

Source: fool.com

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If You'd Invested $1,000 in Ford 5 Years Ago, Here's How Much You'd Have Today

Feb -21

Source: fool.com

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Weekend Morning Brew: Amazon tops Walmart; Meta--Nvidia pact

Feb -21

Source: gurufocus.com

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Buy 5 Top-Ranked Solid Dividend-Paying Stocks to Remain Safe in 2026

Feb -20

Source: zacks.com

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Could Investing $10,000 in Ford Make You a Millionaire?

Feb -20

Source: fool.com

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3 Cheap Stocks to Buy Now: All Under $20 Per Share

Feb -19

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.80%)

6. Segments

Ford Blue

Expected Growth: 4.5%

The growth rate is lower than the global average due to the decline of ICE vehicles, but the segment's established customer base and consistent demand will help maintain a relatively stable revenue stream.

Ford Pro

Expected Growth: 6.2%

The growth rate is higher than the global average due to the increasing demand for commercial vehicles and services, driven by the growth of e-commerce and logistics.

Ford Model E

Expected Growth: 12.0%

The growth rate is significantly higher than the global average due to the rapidly increasing demand for electric vehicles, driven by government regulations and declining battery costs.

Ford Credit

Expected Growth: 5.8%

The growth rate is in line with the global average, as the demand for automotive financing is relatively stable and tied to the overall automotive market.

Ford Next

Expected Growth: 10.0%

The growth rate is higher than the global average due to the potential for high returns from investments in new technologies and businesses, such as mobility services and autonomous vehicles.

Unallocated Amounts and Eliminations

Expected Growth: 0.0%

The growth rate is lower than the global average, as this segment represents eliminations and corporate activities that are not expected to drive revenue growth.

7. Detailed Products

Ford F-Series

A line of pickup trucks that are known for their durability and reliability

Ford Mustang

A high-performance sports car with a rich history and iconic design

Ford Explorer

A mid-size SUV that offers ample space, comfort, and versatility

Ford Transit

A line of commercial vans designed for cargo and passenger transportation

Ford Focus

A compact car that offers fuel efficiency, agility, and advanced technology

Ford Bronco

A rugged and off-road capable SUV that offers adventure and excitement

Ford Ranger

A mid-size pickup truck that offers capability, durability, and versatility

Ford Edge

A mid-size SUV that offers comfort, technology, and versatility

Ford Escape

A compact SUV that offers fuel efficiency, agility, and advanced technology

Ford F-650/F-750

A line of medium-duty trucks designed for commercial use

Ford Transit Connect

A compact van designed for cargo and passenger transportation

8. Ford Motor Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Ford Motor Company faces moderate threat from substitutes, as customers have alternative options such as public transportation, ride-hailing services, and other modes of transportation.

Bargaining Power Of Customers

Ford Motor Company faces high bargaining power from customers, as they have many options to choose from and can easily switch to competitors' products.

Bargaining Power Of Suppliers

Ford Motor Company has a strong bargaining power over its suppliers, as it is a large and established company with significant purchasing power.

Threat Of New Entrants

Ford Motor Company faces low threat from new entrants, as the automotive industry has high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

Ford Motor Company operates in a highly competitive industry, with intense rivalry among established players, including General Motors, Toyota, and Volkswagen.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 77.94%
Debt Cost 3.95%
Equity Weight 22.06%
Equity Cost 12.10%
WACC 5.75%
Leverage 353.28%

11. Quality Control: Ford Motor Company passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ford

A-Score: 6.6/10

Value: 7.5

Growth: 4.7

Quality: 2.5

Yield: 10.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
PulteGroup

A-Score: 5.8/10

Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Booking

A-Score: 5.8/10

Value: 3.6

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
General Motors

A-Score: 5.0/10

Value: 5.2

Growth: 6.3

Quality: 2.6

Yield: 1.0

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Lennar

A-Score: 4.8/10

Value: 6.8

Growth: 4.3

Quality: 5.9

Yield: 3.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Tesla

A-Score: 4.0/10

Value: 0.0

Growth: 8.7

Quality: 5.1

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.62$

Current Price

13.62$

Potential

-0.00%

Expected Cash-Flows