This is a step-by-step stock review to answer the question, is Ford (F) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Ford (F) stock a good buy?
1. Ford Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1903: Henry Ford established the Ford Motor Company, revolutionizing the automobile industry.
- Model T Launch: Introduced in 1908, the Model T became the first affordable car for the masses, transforming personal transportation.
- Assembly Line Innovation: In 1913, Ford pioneered the moving assembly line, significantly reducing production costs and time.
- Global Expansion: By the 1920s, Ford expanded globally, setting up manufacturing plants in Europe, Canada, and South America.
- Ford F-Series: Launched in 1948, the F-Series trucks became the best-selling vehicle line in the U.S.
- Mustang Introduction: The iconic Ford Mustang was unveiled in 1964, becoming a symbol of American muscle cars.
- Technological Advancements: Ford has consistently embraced new technologies, from safety innovations like seat belts and airbags to modern electric and hybrid vehicles.
- Economic Challenges: Overcame financial difficulties, including the Great Depression and the 2008 financial crisis, by restructuring and innovating.
- Commitment to Sustainability: In recent years, Ford has focused on sustainability, launching electric models like the Mustang Mach-E and investing in green technologies.
- Ford Mobility: Expanding into smart mobility solutions, Ford aims to address modern transportation challenges through advanced technologies and services.
- Legacy of Innovation: With over a century of history, Ford continues to be a leader in the automotive industry, known for quality, innovation, and reliability.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Over
- Score: 33/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Ford (F) makes money:
- Selling Vehicles: Ford sells cars, trucks, and SUVs to customers worldwide.
- Leasing Vehicles: Ford leases vehicles to customers, who pay monthly to use them.
- Financing Services: Ford Credit provides loans and financing options for buying or leasing vehicles.
- Selling Parts: Ford sells replacement parts and accessories for vehicles.
- Commercial Fleet Sales: Ford sells and leases vehicles to businesses for use in their fleets.
- Maintenance and Repairs: Ford makes money from services like oil changes, repairs, and maintenance at dealerships.
- Licensing and Technology: Ford earns money from licensing its technology and designs to other companies.
- Electric Vehicles and Sustainability: Ford invests in electric vehicles (EVs) and sustainable technologies, which contribute to their revenue through sales and partnerships.
- Software and Connectivity: Ford offers software services and connectivity features for their vehicles, which include navigation, entertainment, and safety features.
- Joint Ventures and Partnerships: Ford collaborates with other companies to develop new technologies and products, sharing profits from these ventures.
Here are a few of the other companies that Ford (F) has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Lincoln
- Mercury
- Jaguar
- Aston Martin
- Volvo
- Land Rover
- Troller
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Ford (F) stacks up against other companies.
- Ferrari N.V. (RACE) – 89
- Stellantis N.V. (STLA) – 72
- General Motors Company. (GM) – 67
- Toyota Motor Corporation. (TM) – 56
- Honda Motor Co., Ltd. (HMC) – 45
- Ford Motor Company(F) – 33
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- CEO Leadership: Jim Farley Became CEO of Ford in October 2020, providing strong leadership and strategic direction.
- Electric Vehicles: Pushed Ford’s shift to electric vehicles, launching popular models like the Mustang Mach-E and F-150 Lightning.
- Financial Turnaround: Led a financial turnaround, improving profitability and reducing costs.
- Technology Integration: Advanced Ford’s technology, focusing on software, connectivity, and autonomous driving.
- Partnerships: Formed key partnerships with tech companies to enhance innovation and product offerings.
- Customer Experience: Improved customer experience with better services and modernized dealerships.
- Sustainability: Committed to sustainability goals, including reducing carbon emissions and increasing vehicle efficiency.
- Global Strategy: Enhanced Ford’s global strategy, strengthening its presence in key markets.
- Product Line: Revitalized Ford’s product line, ensuring a diverse range of vehicles to meet market demands.
- Employee Focus: Promoted a positive work environment, focusing on employee development and engageme
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Ford is 46/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Ford (F) stock a good buy?
Some of the top questions investors can have is Ford (F) stock a good buy or should I buy Ford (F) stock?
Investing in Ford can be a wise choice due to its strong brand, leadership in the automotive industry, and commitment to electric vehicles. Ford has launched popular electric models like the Mustang Mach-E and F-150 Lightning, signaling a shift towards sustainable transportation. The company’s focus on technology, connectivity, and autonomous driving enhances its market position. Additionally, Ford’s strategic global presence and improved financial performance show resilience and growth potential. However, investors should consider risks such as market competition, economic conditions, and the transition challenges in the automotive industry. Assessing Ford’s innovation, market strategy, and alignment with your investment goals will help determine if it’s a good fit for your portfolio.
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To truly know if Ford is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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