Evergreen with good numbers

Last Updated: 2. Januar 2024By

Was everything the same as always during the holidays for you? Goose, raclette or fondue? Just like with food, there are many car buyers who stick to the tried and true. Like with cars from the Ford brand. The manufacturer is traditionally affordable and offers solid performance without any frills. Enough reasons to take a closer look at the stock as well.

We did the check for you! Ford is one of the oldest car manufacturers in the world. The American automaker produces not only cars, but also agricultural machinery, trucks and SUVs, and offers complementary products and services related to cars. The brand portfolio includes Ford, Lincoln, Mercury and Mazda. The luxury brands Jaguar and Land Rover, as well as Volvo, have been sold.

Combustion engines drive strong numbers Ford generated $130 billion in revenue in the first 9 months, an increase of 14%. After a loss last year, profits improved to $1.21 per share. With 1.66 million vehicles sold, sales are 7.7% higher than the previous year. The EBIT margin increased by 0.4 percentage points to 5.0%. The fully electric Ford Model e division has been in deficit, with a negative EBIT of $1.3 billion reported in the third quarter alone. Since the beginning of the year, it has been $3.1 billion.

After a weak first quarter, sales stabilized significantly in the following quarters at $1.8 billion each. With increasing sales, the negative EBIT also increased. Here, 54,000 vehicles were sold, an increase of 13%. In the Ford Blue division, which includes all other cars except commercial vehicles, EBIT of $6.6 billion was generated. The EBIT margin fluctuated between 6.7 and 10.4%. The bestsellers are the F-150 and Maverick pickups, which are the most popular hybrids in the USA. The number of hybrid models sold increased by 18.8% to 110,000 units. The newly launched classic Ford Mustang GTD is also set to go on sale next year.

What we think despite a 5.2% dividend yield The highest EBIT margin of 12.7% was reported for Ford Pro, the commercial vehicle division. Here, sales growth of 16% was achieved. The new generation of the Transit Custom is expected to increase the number of commercial customers. The financing division was also profitable, with a profit of $0.4 billion. We like the numbers. However, electric sales are slow at Ford. The dividend yield of 5.2% is very good. The stock is solid – but nothing more.