Ford Motor Company (F) is listed on NYSE and operates in the Auto - Manufacturers industry (Consumer Cyclical sector).
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.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 16 |
| Hold | 24 |
| Sell | 6 |
| Strong Sell | 0 |
Ford Motor Company, established in 1903 and headquartered in Dearborn, Michigan, is a global automotive manufacturer. The company operates through several segments: Ford Blue, Ford Model e, Ford Pro, Ford Next, and Ford Credit. It produces a variety of vehicles, including Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles. Ford distributes its products through a network of distributors and dealers, catering to commercial fleet customers, daily rental car companies, and government entities.
In addition to manufacturing, Ford engages in vehicle-related financing and leasing activities. It provides retail installment sale contracts for both new and used vehicles and offers direct financing leases for new vehicles to retail and commercial customers. The company also extends wholesale loans to dealers for vehicle inventory purchases and provides loans for dealership working capital, facility enhancements, and real estate acquisitions. Through these comprehensive services, Ford supports its dealers and enhances its market presence in the automotive industry.
Over the past three fiscal years, the company has demonstrated a consistent increase in revenue, growing at a 3.1% CAGR from $176.2 billion in 2023 to $187.3 billion in 2025. Despite this top-line growth, profitability metrics have shown mixed results. The gross margin improved by 3.0pp, reaching 12.2% in 2025, yet the operating margin consistently decreased by 1.7pp to 1.4%, and the net margin turned negative, dropping 6.8pp to -4.4%. This decline in net profitability is reflected in the EPS, which was inconsistent, starting at $1.08 in 2023 and falling to -$2.06 by 2025. On the cash flow front, the company has seen a robust increase in cash generation, with operating cash flow rising at a 19.4% CAGR to $21.3 billion and free cash flow growing at an impressive 36.6% CAGR to $12.5 billion. The free cash flow margin also improved by 2.9pp to 6.7%, indicating stronger cash conversion. However, net debt has consistently increased, reaching $144.2 billion, which, coupled with an interest coverage ratio that fell below 3x, suggests potential leverage concerns. Despite these challenges, the company has managed to enhance per-share value through a slight reduction in share count, which has positively impacted revenue and free cash flow per share.
Recent developments for Ford Motor Company have been dominated by a significant recall announcement. On April 17, Ford disclosed a recall of 1.4 million F-150 pickup trucks from the 2015 to 2017 model years due to a downshifting issue that could increase the risk of crashes. This recall is part of a broader trend for the automaker, which has seen a record-breaking number of recalls in recent years. The recall was highlighted by multiple sources, including Forbes and Zacks Investment Research, underscoring its importance to the company's operations and reputation. Additionally, Ford's stock performance has been under scrutiny, with The Motley Fool noting that its shares have significantly underperformed the S&P 500 over the past decade, achieving only a 66% total return compared to the index's 300%. Despite these challenges, Ford is reportedly doubling down on its strategy to produce affordable electric vehicles, as stated by CEO Jim Farley. This strategic focus comes amid broader industry shifts and competitive pressures in the EV market. These developments reflect ongoing operational and strategic challenges for Ford as it navigates a complex automotive landscape.