Ford Return On Equity

F
 Stock
  

USD 11.20  0.07  0.63%   

Ford Motor fundamentals help investors to digest information that contributes to Ford's financial success or failures. It also enables traders to predict the movement of Ford Stock. The fundamental analysis module provides a way to measure Ford's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Ford stock. This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
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As of July 1, 2022, Average Equity is expected to decline to about 36.1 B.

Ford Return On Equity Analysis

Ford's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
 2019 2020 2021 2022 (projected)
Interest Expense1.02 B1.65 B1.8 B1.57 B
Gross Profit11.73 B5.79 B16.44 B15.2 B
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current Ford Return On Equity

    
  29.17 %  
Most of Ford's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Ford Motor is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Ford Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Ford is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Return On Equity. Since Ford's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Ford's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Ford's interrelated accounts and indicators.

Ford Return On Equity Historical Pattern

Today, most investors in Ford Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Ford's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Ford return on equity as a starting point in their analysis.
 Ford Return On Equity 
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      Timeline 
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Compare to competition

Ford Shareholders Equity

Shareholders Equity

42.55 Billion

Share
Ford Shareholders Equity is projected to increase significantly based on the last few years of reporting. The past year's Shareholders Equity was at 48.52 Billion
Based on the latest financial disclosure, Ford Motor has a Return On Equity of 29.17%. This is much higher than that of the Consumer Cyclical sector and notably lower than that of the Auto Manufacturers industry. The return on equity for all United States stocks is notably lower than that of the firm.

Ford Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Ford's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Ford could also be used in its relative valuation, which is a method of valuing Ford by comparing valuation metrics of similar companies.
Ford is currently under evaluation in return on equity category among related companies.

Ford Current Valuation Drivers

We derive many important indicators used in calculating different scores of Ford from analyzing Ford's financial statements. These drivers represent accounts that assess Ford's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Ford's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee37.63 K18.48 K247(6.86 K)98.02 K105.75 K
Revenue Per Employee776.12 K805.72 K820.53 K681.7 K745.03 K841.58 K
Average Assets250.33 B260.2 B260.54 B265.18 B254.77 B266.04 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA18.56 B14.94 B10.03 B9.28 B26.93 B23.12 B
Earnings Before Interest Taxes and Depreciation Amortization USD18.56 B14.94 B10.03 B9.28 B26.93 B23.12 B
Earnings before Tax8.13 B4.33 B(677 M)(1.12 B)17.81 B19.21 B
Average Equity32.92 B36.34 B35.26 B31.07 B38.4 B36.12 B
Enterprise Value181.14 B165.3 B170.46 B167.98 B200.14 B200.24 B
Free Cash Flow11.05 B7.24 B10.01 B18.53 B9.56 B10.2 B
Invested Capital299.69 B298.47 B298.21 B306.51 B283.86 B316.85 B
Invested Capital Average288.01 B301.13 B297.25 B309.54 B287.77 B320.88 B
Market Capitalization49.61 B30.43 B36.87 B34.97 B83 B72.62 B
Tangible Asset Value258.5 B256.54 B258.54 B267.26 B257.04 B268.92 B
Working Capital22.2 B19.08 B15.91 B19.55 B18.27 B17.64 B

Ford Fundamentals

About Ford Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ford Motor's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ford using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ford Motor based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Average Equity38.4 B36.1 B
Ford Motor Company designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. Ford Motor Company was incorporated in 1903 and is based in Dearborn, Michigan. Ford operates under Auto Manufacturers classification in the United States and is traded on New York Stock Exchange. It employs 183000 people.

Ford Investors Sentiment

The influence of Ford's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Ford. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Ford Implied Volatility

    
  79.88  
Ford's implied volatility exposes the market's sentiment of Ford Motor stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ford's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Ford stock will not fluctuate a lot when Ford's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Ford in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Ford's short interest history, or implied volatility extrapolated from Ford options trading.

Current Sentiment - F

Ford Motor Investor Sentiment

Most of Macroaxis users are currently bullish on Ford Motor. What is your opinion about investing in Ford Motor? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Ford Motor using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Please check Ford Piotroski F Score and Ford Altman Z Score analysis. Note that the Ford Motor information on this page should be used as a complementary analysis to other Ford's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Complementary Tools for Ford Stock analysis

When running Ford Motor price analysis, check to measure Ford's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ford is operating at the current time. Most of Ford's value examination focuses on studying past and present price action to predict the probability of Ford's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ford's price. Additionally, you may evaluate how the addition of Ford to your portfolios can decrease your overall portfolio volatility.
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Is Ford's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ford. If investors know Ford will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ford listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.25
Market Capitalization
45.5 B
Quarterly Revenue Growth YOY
-0.048
Return On Assets
0.0227
Return On Equity
0.29
The market value of Ford Motor is measured differently than its book value, which is the value of Ford that is recorded on the company's balance sheet. Investors also form their own opinion of Ford's value that differs from its market value or its book value, called intrinsic value, which is Ford's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ford's market value can be influenced by many factors that don't directly affect Ford's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ford's value and its price as these two are different measures arrived at by different means. Investors typically determine Ford value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ford's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.