It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. But for those who consider these important metrics, we encourage you to check out companies that do have those features. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. We should say that we've discovered 2 warning signs for Ford Motor (1 doesn't sit too well with us!) that you should be aware of before investing here. So based on this quick analysis, we do think it's worth considering Ford Motor for a spot on your watchlist. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. Is Ford Motor Worth Keeping An Eye On?įord Motor's earnings have taken off in quite an impressive fashion. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future. We note that their impressive stake in the company is worth US$675m. But we do take comfort from the fact that they are investors in the company. Since Ford Motor has a market capitalisation of US$51b, we wouldn't expect insiders to hold a large percentage of shares. Story continues Are Ford Motor Insiders Aligned With All Shareholders? The chart below shows how the company's bottom and top lines have progressed over time. The good news is that Ford Motor is growing revenues, and EBIT margins improved by 4.2 percentage points to 7.0%, over the last year. Not all of Ford Motor's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. When you see earnings grow that quickly, it often means good things ahead for the company. It is awe-striking that Ford Motor's EPS went from US$0.72 to US$2.24 in just one year. Which is why EPS growth is looked upon so favourably. Investors and investment funds chase profits, and that means share prices tend rise with positive earnings per share (EPS) outcomes. See our latest analysis for Ford Motor Ford Motor's Improving Profits Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Ford Motor with the means to add long-term value to shareholders. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.ĭespite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy buying shares in profitable companies like Ford Motor ( NYSE:F). Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |