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Its pro segment see good growth prospects, a two -digit exploitation margin and a recurring source of income.
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Economic conditions, prices and labor disputes are external factors that can have a huge impact on Ford.
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While the stock seems inexpensive, the Ford Stock record points to the underperforming market in the future.
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10 actions that we love better than Ford Motor Company ›
Technological companies seem to draw all the attention these days. But it is best not to forget well -known companies in other industries that are also important to the economy. Detroit Automaker Ford Motor Company (Nyse: f) is one of them.
Since 1903, this company has become a leader in its industry. But is Ford Stock a purchase now? Investors will be able to make a better decision after having evaluated both the bull and bear case.
One of the greatest criticisms of investment in automotive companies is that they do not lend themselves to repeating purchasing behavior with consumers. This is the case with an expensive article. This contrasts strongly with companies that sell products and services that are low cost and purchased at frequent intervals. Consequently, Ford could undergo a lumpy request.
Management aims to change things. Its Ford Pro segment, which sells vehicles, software and services to commercial and government customers, is a light point. He posted income growth of 15% in 2024, with an operating margin of 13.5% which is much higher than the company as a whole.
Ford Pro had 675,000 subscriptions on March 31, a figure that climbed 20% from one year to the next. “Ford Pro Intelligence continues to generate high margin and recurrent non-cyclical income,” said CFO Sherry House when the fourth quarter of 2024 results. Ford Pro Intelligence is a cloud platform that allows customers to manage their vehicles.
The dividend is an obvious reason why investors would like to buy Ford shares. The current Dividends yield is 5.73%, which is a significant payment that some investors will find very convincing.
Of course, this also implies that the stock is cheap. As of June 25, shares were negotiated at a price / benefit ratio of 8.4. If the multiple of Ford’s evaluation goes back in a way to its average of 10 years of 10 years, there are already 20% to 20% for the stock.
I believe that a good starting point to find winning actions is to look at companies whose actions have worked well in the past. Unfortunately, Ford does not correspond to the invoice. Since June 2015, the Ford action has generated a total return of 19%. This gain, which includes the dividend, S&P 500 hint and its total return of 245%. I am not very confident that this trend will change.
