| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5.60 | -52 |
| Intrinsic value (DCF) | 5.47 | -53 |
| Graham-Dodd Method | 6.00 | -49 |
| Graham Formula | 16.50 | 41 |
Ford Motor Company (FMC1.DE) is a global leader in the automotive industry, designing, manufacturing, and marketing a diverse portfolio of vehicles, including trucks, SUVs, electrified vehicles, and luxury Lincoln models. Headquartered in Dearborn, Michigan, Ford operates through three key segments: Automotive, Mobility, and Ford Credit. The Automotive segment drives the bulk of revenue, selling vehicles and parts through a vast dealer network, while the Mobility segment focuses on innovative self-driving and mobility solutions. Ford Credit provides financing and leasing services, supporting both retail and commercial customers. With a strategic collaboration with ARB Corporation Limited, Ford enhances its aftermarket offerings, particularly for the Ford Bronco. As a pioneer in the auto sector since 1903, Ford continues to adapt to industry shifts, including the transition to electric vehicles (EVs) and autonomous driving, positioning itself as a resilient player in the consumer cyclical sector.
Ford Motor Company presents a mixed investment profile. On the positive side, Ford boasts strong brand recognition, a diversified vehicle lineup, and a growing focus on electrification, including the Mustang Mach-E and F-150 Lightning. The company's robust operating cash flow (€15.4 billion) and solid liquidity (€22.9 billion in cash) provide financial flexibility. However, Ford's high total debt (€160.9 billion) and beta of 1.547 indicate significant financial leverage and market volatility exposure. The dividend yield (approximately 4.5%) is attractive but must be weighed against cyclical risks in the auto industry. Investors should monitor Ford's EV transition execution, supply chain stability, and competitive pressures in both traditional and electric vehicle markets.
Ford Motor Company operates in the highly competitive global auto manufacturing industry, where it competes with legacy automakers and new EV entrants. Ford's competitive advantages include its strong brand equity, particularly in trucks (F-Series) and SUVs, a broad dealer network, and a growing EV portfolio. The company's strategic partnerships, such as with ARB Corporation, enhance its aftermarket offerings. However, Ford faces intense competition from rivals with deeper EV investments (e.g., Tesla) or stronger luxury segments (e.g., GM's Cadillac). Ford's Mobility segment positions it in autonomous driving, but it lags behind tech-focused competitors like Waymo. Financially, Ford's debt load is higher than some peers, potentially limiting agility. The company's scale and manufacturing expertise remain key strengths, but its ability to innovate and reduce costs in the EV transition will be critical to maintaining competitiveness against both traditional automakers and disruptive newcomers.