Are Ford shareholders starting to panic?
 | By Raphi Shpitalnik | Macroaxis Story |
Ford Revenue Per Employee is expected to increase significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 820,526. The current year Average Assets is expected to grow to about 261.6 B, whereas Average Equity is expected to decline to about 30.1 B. The upcoming quarterly report is expected on the 30th of July 2020. The stock experiences the above-average trading activities. As many of us are excited about driverless cars, it is fair to digest Ford Motor. Why are we still optimistic in an anticipation of a recovery. Ford Motor Piotroski F Score is 6 - Healthy. Taking into account the 90 trading days horizon, Ford is expected to generate 1.07 times less return on investment than the market. In addition to that, the company is 1.15 times more volatile than its market benchmark. It trades about 0.09 of its total potential returns per unit of risk. The market is currently generating roughly 0.11 per unit of volatility. Ford barely shadows the market.
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Reviewed by Ellen Johnson
FORD MOTOR CO has accumulated roughly 34.29 B in cash with 13.62 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.62 which can makes it an attractive takeover target, given it will continue generating positive cash flow. The entity has accumulated 168.69 B in total debt with debt to equity ratio (D/E) of 5.68, implying that the firm may be unable to produce cash to meet its debt commitments. The firm has a current ratio of 1.29, implying that it is not liquid enough and may have problems to pay out its interest payments when they become due. This firm's average rating is Hold from 10 analysts. We provide buy or sell advice to complement the prevailing expert consensus on Ford Motor. Our dynamic recommendation engine makes use of a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Ford, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Ford along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Ford's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Ford's Liquidity
Ford financial leverage refers to using borrowed capital as a funding source to finance Ford Motor ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ford financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ford's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ford's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Ford's total debt and its cash.
Ford Gross Profit
Ford Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ford previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Ford Gross Profit growth over the last 10 years. Please check Ford's gross profit and other fundamental indicators for more details.
Ford Correlation with Peers
Investors in Ford can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Ford Motor. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Ford and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Ford is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Ford for more details
What is driving Ford Investor Appetite?
Ford makes 149.88 b revenue. Ford appears to be slightly risky, given 3 months investment horizon. Ford Motor secures Sharpe Ratio (or Efficiency) of 0.0883, which denotes the company had 0.0883% of return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Ford Motor, which you can use to evaluate future volatility of the firm. Please utilize Ford Motor coefficient of variation of 832.84, downside deviation of 3.58, and mean deviation of 3.05 to check if our risk estimates are consistent with your expectations. Ford Net Income Per Employee is rather stable at the moment. Ford Revenue Per Employee is rather stable at the moment. Furthermore, Ford Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years.
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