Ford shares have seen over a 27% decline year-to-date
Ford Motor Company (NYSE:F) is a well-known American automobile manufacturer with about 182,000 employees worldwide. Ford stock has added 16.6% in the past year, and 35% this quarter. However, in 2022, the stock is still down 27.6%, after the equity's July and early August rally ran out of steam at the 200-day moving average. The 140-day moving average has kept some of these losses in check, though. What's more, F maintains an extremely low valuation, leaving its forward price-earnings ratio at a value of 7.18 and its price-sales ratio at a value of 0.41.
These valuation metrics are made more appealing by the business’ growth estimates. Ford Motor Company is expected to report 15.9% revenue growth and 30.8% earnings growth for fiscal 2022. The company is also expected to produce an 8.1% increase in revenues for fiscal 2023. However, estimates predict a 5.8% decline in earnings for fiscal 2023. Ford Motor has also struggled to generate consistent annual top and bottom line growth in recent years, reporting significant declines for fiscal 2019 and fiscal 2020.
Although F's fiscal 2020 figures can be justified by the pandemic, the company reported a 2.8% decrease in revenues and a whopping 98.7% decrease in net income for fiscal 2019, which is worrisome for fundamental-based investors. Another major red flag with Ford’s fundamentals is its balance sheet. The car manufacturer holds $28.22 billion in cash and a massive $130.23 billion in total debt, which is well-over double the company’s market cap of $60.95 billion. Still, Ford stock provides an intriguing opportunity for value and dividend investors, seeing as F now offers a high dividend yield of 3.99% at a forward dividend of $0.60.