Latest news with #F-Series
Yahoo
7 days ago
- Automotive
- Yahoo
Ford Stock Looks Cheap at 0.26X P/S - But is It Worth Buying?
U.S. legacy automaker Ford F is currently trading at a 0.26 forward 12-month price-to-sales (P/S) ratio, below the industry levels as well as its own 5-year average. The valuation also stacks up favorably against its closest peer, General Motors GM, and the electric vehicle giant, Tesla TSLA. General Motors has a P/S of 0.27X, while Tesla is trading at a much loftier 9.88X multiple. Of course, Tesla's valuation is less tied to current fundamentals and more driven by optimism around unproven future bets, like robotaxis and artificial intelligence. Image Source: Zacks Investment Research Ford looks undervalued despite the stock rising roughly 7% year to date against the industry's loss of more than 19%. Over the same timeframe, shares of General Motors have declined almost 10%, and Tesla slid 20%. Image Source: Zacks Investment Research With Ford's valuation looking cheap, the real question now is whether Ford has the momentum and fundamentals to deliver a real upside from here. Ford remains a key player in the U.S. auto market, with a lineup that continues to resonate with American buyers. The F-Series trucks continue to be a best-seller, and models like the Maverick pickup, Escape, Explorer, Expedition, and Edge keep Ford well-positioned in the SUV and crossover space. One of the major key catalysts for Ford currently is its Ford Pro business, which is focused on commercial customers. The combination of Ford Pro's strong order books, increasing demand signals and the successful launch of the all-new Super Duty sets the stage for a highly promising future for the Ford Pro segment. The growing interest in its software and service offerings is also driving the unit's earnings. The segment has around 675,000 paid software subscriptions, with strong ARPU growth driving incremental revenues. Software services also serve as a countercyclical measure for the segment. Ford's healthy balance sheet and investor-friendly moves instill investor confidence. The company ended the first quarter of 2025 with roughly $45 billion in liquidity, including around $27 billion in cash. Its superior liquidity profile provides a solid foundation for investment in Ford+ priorities. Encouragingly, Ford is on track to deliver $1 billion in net cost reductions this year, excluding tariff effects. Ford's dividend yield of over 5% stands out as an attractive option for income-focused investors, especially when stacked against the S&P 500's average yield of just more than 1%. With plans to return 40-50% of its free cash flow to shareholders, Ford underscores its commitment to rewarding investors, even as it navigates a major transformation of its business. Ford's EV business is under pressure. Its Model-e segment is bearing the brunt of stiff competition, pricing pressure and significant costs associated with new-generation EV development. After having incurred losses of $4.7 billion in its EV business in 2023, Ford's loss from Model-e widened to $5.07 billion in 2024, exacerbated by ongoing pricing pressure and increased investments in next-generation EVs. The company is expected to incur huge losses in its EV business this year as well. The Ford Blue division seems to be losing momentum. Ford expects to sell fewer ICE vehicles compared to last year. Additionally, a shift in product mix and foreign exchange headwinds will drag profits. The automaker is bracing for tariff-related headwinds as well. The full impact of shifting tariffs and potential retaliatory measures on the auto supply chain remains uncertain across the industry. In this context, Ford has projected a net negative impact of approximately $1.5 billion on its adjusted EBIT in 2025. The Zacks Consensus Estimate for Ford's 2025 sales and earnings implies a year-over-year decline of 7% and 40%, respectively. Take a look at how the estimates have been revised over the past 30 days. Image Source: Zacks Investment Research While Ford stock looks cheap on paper, especially with its low 0.26 forward P/S ratio and generous dividend yield, this doesn't necessarily mean it's time to buy. Indeed, the company has promising growth drivers in its Ford Pro division, where strong demand and rising software revenues are helping offset cyclicality. However, headwinds are building elsewhere. Ford's EV segment continues to post steep losses, and its traditional ICE business is showing signs of slowing, with lower sales and profit drag expected. Along with the projected tariff impact and declining earnings estimates, the near-term setup looks uncertain. For existing investors, Ford's healthy balance sheet and commitment to shareholder returns offer reasons to stay put. But for new investors, a wait-and-watch approach may be more prudent. Ford needs clearer momentum and positive estimate revisions before it looks like a buy. It's prudent to watch how the next few quarters unfold, especially on costs, tariffs and Ford Pro execution. Currently, Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
10-06-2025
- Automotive
- Yahoo
Head-to-Head: Here's How Ford and Toyota Stack Up in the Auto Space
Ford F and Toyota TM are two well-recognized names in the global auto industry and fierce rivals in the U.S. market. Toyota, the Japanese heavyweight, currently holds the No. 2 spot in the U.S. market, selling 2.33 million vehicles last year. That's a 3.7% increase from 2023. Not far behind is Ford, the homegrown challenger, with 2.07 million vehicles sold, up 4.2% year over year. But the gap widens on a global scale. Toyota's massive reach helped it move 10.8 million vehicles worldwide in 2024, while Ford sold just 4.5 million. That difference is visible in their market caps too — Toyota is valued at around $250 billion, compared to Ford's $40 billion. Year to date, shares of Toyota have declined 5.5%, while Ford has grown 4.4%. Nonetheless, both have outperformed the auto sector over the same timeframe. Image Source: Zacks Investment Research So, which stock is the better pick right now? Let's dig into the fundamentals, growth drivers, and potential risks to see which automaker deserves a spot in your portfolio. Ford remains a key player in the U.S. auto market, with a lineup that continues to resonate with American buyers. The F-Series trucks continue to be a best-seller, and models like the Maverick pickup, Escape, Explorer, Expedition, and Edge keep Ford well-positioned in the SUV and crossover space. The company's hybrid strategy is paying off. As full EV adoption slows, hybrids are gaining traction. Ford's growing hybrid sales give it a nice middle ground—appealing to buyers who want better fuel efficiency without fully committing to electric. Financially, Ford is in a relatively strong position. The company exited the first quarter of 2025 with $27 billion in cash and $45 billion in liquidity. This provides room to invest in its Ford+ priorities, including digital innovation and electrification. Another appealing factor for Ford's investors is its dividend, which currently yields roughly 6%, much higher than the S&P 500 average. The company also aims to return 40–50% of free cash flow to shareholders, signaling a continued focus on income investors. Ford Motor Company dividend-yield-ttm | Ford Motor Company Quote A major growth engine for Ford is its Ford Pro business, which is focused on commercial customers. With strong demand, a successful Super Duty launch and growing interest in its software and service offerings, Ford Pro could become a real earnings driver. Ford's push into tech and fleet solutions is showing promise. That said, Ford faces real challenges. Its traditional gas-powered vehicle unit, Ford Blue, is under pressure. Sales are expected to fall, and foreign exchange issues could further dent profits. Meanwhile, its EV division, Model e, is bleeding money. Losses reached over $5 billion in 2024 and may continue to rise as competition intensifies. Policy risk is another key concern. U.S. President Trump's tariffs may cost Ford up to $2.5 billion. While Ford aims to offset $1 billion of this through strategic actions, the remaining $1.5 billion, expected to hit in 2025, remains a major concern. Supply chain disruptions or retaliatory tariffs could further impact operations and demand. These uncertainties, combined with the internal pressure, continue to cloud the near-term picture for the company. The Zacks Consensus Estimate for Ford's 2025 sales and EPS implies a year-over-year decline of 7% and 40%, respectively. Toyota continues to prove why it's often viewed as one of the most dependable names in the global auto industry. The company beat earnings expectations in its last reported quarter and is guiding for growth in both revenues and vehicle volumes for fiscal 2026, which ends March 31, 2026. Despite its strong top-line outlook, Toyota is bracing for some near-term pressure on its profits. The automaker expects operating income to decline 21% this fiscal year. Several factors are behind this outlook—rising material costs, currency headwinds from a stronger yen and the potential impact of Trump-era tariffs. These tariffs could drive vehicle prices higher, which may cool demand in important markets like the United States. Still, Toyota is projecting a rise in vehicle sales. It expects to sell 9.8 million vehicles in fiscal 2026, up from 9.36 million sold in fiscal 2025. Including Lexus, total sales could reach 10.4 million units. Electrified vehicles remain a big growth area. Toyota expects to sell 5.18 million hybrids and plug-in hybrids this year, an increase from 4.75 million in fiscal 2025. This strength is helping to support a modest bump in forecasted revenues to ¥48.5 trillion. Toyota's hybrid-first approach continues to gain traction. A clear example is RAV4 — America's top-selling SUV — which will be sold only as a hybrid or plug-in hybrid starting in 2026. While rivals rush to go all-in on battery electrics, Toyota is sticking to a more gradual and cost-effective path. It's also exploring alternative solutions like hydrogen, with a focus on commercial vehicles and building out infrastructure to lower costs over time. For shareholders, the company has remained consistent. Toyota raised its annual dividend to 90 yen per share in fiscal 2025 and plans to increase it further to 95 yen in fiscal 2026. Between its cautious electrification strategy and steady capital returns, Toyota continues to navigate a changing auto industry with discipline, even as headwinds build. The Zacks Consensus Estimate for Toyota's fiscal 2026 sales indicates 8% growth year over year, while earnings are expected to decline 21%. In a capital-heavy industry like autos, evaluating how efficiently a company puts its money to work is key. On that front, Toyota holds an edge. Toyota's return on invested capital stands at 4.8%, well above Ford's 1.77%. While neither figure is particularly strong in absolute terms, the gap suggests that Toyota is more effective at generating profit from its capital base. Image Source: Zacks Investment Research On a valuation basis, Toyota trades at a more attractive EV/EBITDA multiple than Ford. This suggests that, relative to its earnings before interest, taxes, depreciation, and amortization, Toyota's stock is priced more reasonably. Image Source: Zacks Investment Research Ford and Toyota are both navigating an evolving auto landscape shaped by electrification, policy risks and shifting consumer demand. Ford has strong brand recognition in the United States, a high dividend yield, and potential upside in its Ford Pro division. However, persistent EV losses, tariff overhang and weaker capital efficiency cloud the near-term outlook. Toyota, meanwhile, faces its own headwinds—currency and margin pressures. But its global scale, resilient hybrid sales, and cautious approach to electrification offer a more stable path forward. The company is growing volumes without getting weighed down by the high costs of going all-in on EVs. Add in Toyota's stronger return on invested capital and more attractive valuation, and the case becomes clearer. While both stocks have a Zacks Rank #3 (Hold) for now, but if forced to pick today, Toyota's stronger capital discipline and strategic positioning give it a slight edge. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Automotive
- Yahoo
Ford, Hyundai post higher US sales in May on strong SUV, truck demand
By Nathan Gomes and Kalea Hall (Reuters) -U.S. auto sales for Ford Motor and South Korea's Hyundai Motor rose in May, the companies reported on Tuesday, as concerns over potential tariff-related price hikes prompted buyers to act fast on their purchases of cars and SUVs. U.S. President Donald Trump's tariff policies have fueled uncertainty across the auto industry, driving up supply costs, pressuring margins and pushing some automakers to pass the expenses on to consumers. The sales also got a boost from offers and trade-in deals for affordable pickups and crossovers. Ford's overall sales rose to 220,959 units in May from 190,014 units a year ago. The Detroit automaker's F-Series truck sales climbed 15% to 79,817 vehicles during the month. Ford in April extended discounted rates to its customers that are generally reserved for its workers to keep sales moving, although the automaker also hiked prices on three of its Mexico-made products in May. Hyundai also reported an 8% year-on-year rise in U.S. auto sales to 84,521 vehicles in May. The company noticed a pick up in demand in March and April with a "little bit of a rush" from consumers coming in to purchase because they were concerned about potential tariff price increases, Randy Parker, CEO of Hyundai Motor America, said in an interview on Tuesday. But no decisions were made on changing sticker prices for the brand's vehicles as a result of tariffs, Parker added. A price protection program instituted by the automaker in early April ended on June 2 and was not extended. The program guarantees no hikes to sticker prices on new vehicles sold through the period. "This period really marks our regular annual pricing review," Parker said. "We take a look at market dynamics, consumer demand, independent of tariffs." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
03-06-2025
- Automotive
- Reuters
Ford's US auto sales rise 16% in May
June 3 (Reuters) - Ford Motor (F.N), opens new tab on Tuesday reported a 16% rise in U.S. auto sales for May, aided by demand for pickup trucks and crossover SUVs. Sales of the company's F-Series trucks were up 15% at 79,817 vehicles during the month.
USA Today
25-05-2025
- Automotive
- USA Today
Former Jack Cooper driver launches car hauling startup after Ford contract loss
Former Jack Cooper driver launches car hauling startup after Ford contract loss Show Caption Hide Caption The impact and history of autos in Detroit, The Motor City Here are some facts about Detroit's auto industry. McKinley Archie and three business partners started Squirrelly LLC in February. Squirrelly hauled its first load of Ford Expeditions and F-Series trucks on April 22. Squirrelly is looking to get a direct contract with Ford or General Motors to haul more vehicles. Four months ago, McKinley Archie was blindsided by the reality that his six-figure job with a trucking company where he'd worked for about 20 years was coming to a screeching halt. Archie, 46, had been working at the now-defunct car hauling company Jack Cooper since 2004. He started there as a driver. He drove big rigs loaded with new Ford Motor Co. vehicles out of the automaker's Louisville Assembly Plant and Kentucky Truck Plant to dealerships across the nation. He had worked his way up to steward at the Jack Cooper facility that served Louisville Assembly. Life was good. Then came Jan. 2, the day that Ford — Jack Cooper's second-largest customer behind General Motors — gave a 30-day notice to Jack Cooper that it was terminating its decades-long business with the hauler. Ford did not provide a reason. Archie and about 105 colleagues in Louisville suddenly knew they'd be losing what had been lucrative jobs. "It wasn't McDonald's wage jobs — those were good jobs," Archie said, noting most of the drivers were earning more than $100,000 a year. Then, one month later, GM ended its relationship with Jack Cooper after failing to reach a new contract. That put the nearly 100-year-old vehicle hauling company out of business, eliminating about 2,500 jobs nationally. In Michigan, more than 350 jobs ended when Ford and GM severed their contracts with Jack Cooper. Through it all, Archie put on a brave face to mask his fear about how he'd provide for his family. "As the steward, my coworkers looked to me for leadership and guidance, so I had to be strong for them on the outside. But internally, I didn't know what I was going to do either," Archie said. "Then, when I saw my mom, she said, 'What's wrong? Your face looks heavy?' I broke a couple tears and said, 'I don't know if I'll have a job.' She reminded me that I'm a child of God. He will take care of me. She said to suck it up, keep moving and it will all work out." Digging up the seed cash Archie said he listened to his mother's advice, drew on his faith and started mulling over a plan to survive this setback. He knew that on Jan. 31, the Jack Cooper trucks had to be empty, so he wasted no time. In early February, he gathered together his lifelong band of "brothers from another mother" and proposed an idea. "We've been doing business for years, and we sat down and had a roundtable on how we can mitigate these losses," Archie said. "We decided to launch into the car hauling business." Recent car recalls: Ford F-150, Broncos among over 280,000 vehicles recalled The group has launched other business endeavors, such as in 2020, when they started bourbon-maker Black Bred Distillery in Louisville. They also run a home renovation business, Knox Construction, in Atlanta. In February, the group launched Squirrelly LLC. The goal is to haul Ford vehicles from the Kentucky Truck Plant to dealerships anywhere in the nation. Archie is the company's cofounder and chief compliance officer. The newly established hauler is based in Stone Mountain, Georgia, where some of the group live. The business group consists of Archie, two other men and a woman. The three men grew up together and have known each other "from the cradle," Archie said. They went on first dates together and Archie even taught one of them how to drive. They met the woman later through friends. She brings with her an expertise on logistics, he said. Archie describes the group as "multi-preneurs," meaning that they try to find opportunities across a range of fields. His two male partners have degrees in finance and one is a youth pastor with a master's degree in divinity, Archie said. They decided on the name Squirrelly 'because we are all over the place. That's our slogan," Archie said. But they knew it would be no easy feat to start their own car hauling business. Archie said the plan has been to buy lightly used rigs from Jack Cooper. But each one carried a whopping price tag of $260,000. Then there is the cost for insurance on the rigs and for employees. He said they were able to lease some of the trucks to start, which helped get them going. So far, Squirrelly has bought 10 trucks and is scheduled to buy 25 more, he said. "So it was quite a lot we had to raise, an arduous task for us," Archie said, saying all the capital came from the group's own resources, no outside funding. "We had go into my backyard and dig up all my savings. It's hard to go even to a bank and say give me $3 million to start a dream. Now that we're actually moving cars, maybe we can go back to them and show them proof of concept. But we bootstrapped all of it.' Looking to make his own deal Squirrelly moved its first load of Ford vehicles April 22 from Kentucky to Texas. Since then, it has hauled nine loads of the Ford Expedition SUV and F-Series Super Duty pickups from Kentucky Truck Plant to dealerships in Texas and 17 loads to dealerships in Michigan. Archie said that's about 120 vehicles. 'It's a great start for us," Archie said. "Of course, we want to get to the point where we're moving 36 loads a day or better. Once we get our own inventory straight from the (automakers), that'll be better." Ford spokeswoman Ursula Muller declined to comment about Squirrelly hauling Ford vehicles because the automaker has a policy to not comment on supplier contracts. But Squirrelly is currently transporting the overflow work from other hauling companies because under the Teamsters union contract, haulers must give overflow work to other unionized carriers, Archie said. Late last month, Squirrelly employees voted to join the Teamsters, the union confirmed. A week later, a second unit of former Jack Cooper haulers rejoined the Teamsters Union. In a media release, Teamsters Local 964 in Ohio said a group of carhaulers in Avon Lake, employed by Fleet Transport Corp., unionized with Local 964. Fleet Transport was launched last month to fill the void in that market left by Jack Cooper's bankruptcy, the release said. Ford's Ohio Assembly Plant in Avon Lake builds the F-Series Medium Duty and Super Duty pickups. Squirrelly has six employees beyond the 10 former Jack Cooper drivers Squirrelly has hired, Archie said. "My goal is get most of those (drivers) back to work. Cassens Transport took a few of them," Archie said, noting that besides Cassens, other haulers for the Louisville plants include Precision Hauling and RCS Transportation. 'We're the new kid on the block," Archie said. "Before Jack Cooper went out, those carriers were already there.' Archie said Squirrelly is looking to negotiate a direct contract with the Detroit automakers. In the meantime, he said it feels satisfying to be working again and able to employ others. "It's a lot of pride to me personally to help my fellow brothers get back to work," Archie said. "I just thank God that He put me in a position to be able to do it. When it was happening and we were losing our jobs, I thought, 'I'll be all right because I'll start my own car hauling company.' Four months later, here we are actually moving vehicles.' Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
