FORD MOTOR CO (F) Stock Analysis
FORD MOTOR CO (F) Stock Analysis
Analysis from 10-Q filed 2025-10-24. Data as of Q4 2025.
Overall Grade: F (Concerning)
FORD MOTOR CO faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | -8.0% | Below expectations |
| FCF Margin | 6.7% | Healthy cash flow |
| Debt/Equity | 2.5x | Elevated debt |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore FORD MOTOR CO: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: FORD MOTOR CO earns -8.0% ROIC
FORD MOTOR CO's trailing-twelve-month ROIC of -8.0% (sector median: 7.3%), driven by NOPAT margin of -3.4% combined with asset turnover of 0.6x. Source: 10-Q filed 2025-10-24. Gross margin of 6.8% with operating margin at -4.9% reflects a competitive pricing environment.
| Metric | F | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -8.0% | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | -18.4% | Red flag | Moderate equity returns |
| Gross Margin | 6.8% | Warning | Competitive pricing environment |
| Operating Margin | -4.9% | Warning | Moderate operational efficiency |
Cash Flow: FORD MOTOR CO generates $12.5B FCF at 6.7% margin, positive NaN/8 quarters
FORD MOTOR CO generated $12.5B in free cash flow (TTM), a 6.7% FCF margin, a margin that ranks Top 50% in Industrials. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-24.
| Metric | F | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 6.7% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $12.5B | Good | Positive cash generation |
| OCF/Net Income | -2.6x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: FORD MOTOR CO at 2.5x leverage
FORD MOTOR CO's debt-to-equity ratio of 2.5x reflects high leverage. Total debt of $89.7B offset by $38.9B in cash. Source: 10-Q filed 2025-10-24.
| Metric | F | Rating | Context |
|---|---|---|---|
| Debt to Equity | 2.5x | Warning | Elevated leverage |
| Net Cash Position | $-50.8B | Warning | Net debt position |
Valuation: FORD MOTOR CO trades at -6.4x earnings
FORD MOTOR CO trades at a P/E of -6.4x. Free cash flow yield of 23.9% offers attractive cash returns relative to price.
| Metric | F | Rating | Context |
|---|---|---|---|
| P/E Ratio | -6.4x | Red flag | Reasonable valuation |
| EV/Sales | 0.3x | Excellent | Attractive revenue multiple |
| FCF Yield | 23.9% | Excellent | Attractive cash return |
| Dividend Yield | 5.7% | Good | Meaningful income |
Capital Allocation: FORD MOTOR CO returns 5.7% shareholder yield
FORD MOTOR CO's total shareholder yield is 5.7% (dividends 5.7% + buybacks). Source: 10-Q filed 2025-10-24.
| Metric | F | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.7% | Good | Dividend + buyback yield combined |
| Buyback Yield | 0.0% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $3.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -8.0% | Bottom 10% | -1.1x below |
| Free Cash Flow Margin | 6.7% | Top 50% | 1.4x above |
| Gross Margin | 6.8% | Bottom 10% | 0.2x below |
| Operating Margin | -4.9% | Bottom 10% | -0.7x below |
| Return on Equity (ROE) | -18.4% | Top 5% | -2.1x below |
Financial Scorecard
| Metric | F | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -8.0% | Red flag | Below cost of capital |
| Free Cash Flow Margin | 6.7% | Adequate | Top 50% of sector (median: 4.7%) |
| Gross Margin | 6.8% | Red flag | Bottom 10% of sector (median: 33.1%) |
| Debt to Equity Ratio | 249.4% | Warning | High financial leverage |
| Free Cash Flow Yield | 23.9% | Excellent | High cash return |
Frequently Asked Questions
Q: What is FORD MOTOR CO's Return on Invested Capital (ROIC)?
FORD MOTOR CO (F) has a trailing twelve-month Return on Invested Capital (ROIC) of -8.0%. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is FORD MOTOR CO's Free Cash Flow Margin?
FORD MOTOR CO (F) has a free cash flow margin of 6.7%, generating $12.5 billion in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is FORD MOTOR CO stock overvalued or undervalued?
FORD MOTOR CO (F) trades at a P/E ratio of -6.4x, which is above the sector median of N/A. The EV/Sales multiple is 0.3x. Free cash flow yield is 23.9%, which represents an attractive cash return to investors.
Q: Does FORD MOTOR CO pay a dividend?
FORD MOTOR CO (F) currently pays a dividend yield of 5.7%. Including share buybacks, the total shareholder yield is 5.7%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: How much debt does FORD MOTOR CO have?
FORD MOTOR CO (F) has a debt-to-equity ratio of 2.5x with total debt of $89.7 billion. Net debt position is $50.8 billion.
Q: What is FORD MOTOR CO's revenue and earnings growth?
FORD MOTOR CO (F) grew revenue by 1.2% year-over-year. Modest growth indicates a mature business with stable demand.
Q: How does FORD MOTOR CO compare to competitors in Industrials?
Compared to other companies in Industrials, FORD MOTOR CO (F) shows: ROIC of -8.0% is below the sector median of 7.3% (-1.1x median). FCF margin of 6.7% exceeds the sector median of 4.7% (Top 42% of sector). Gross margin at 6.8% is 26.3 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with FORD MOTOR CO?
Investors in FORD MOTOR CO (F) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. 2) Debt-to-equity of 2.5x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-24. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.