Morningstar Rating

Stock Research and Analysis

by David Whiston, CFA, CPA, CFE

Bulls Say

Ford continues to raise its dividend and has received an investment-grade credit rating from all major rating agencies.
The revamped Fiesta, Focus, Fusion, and Taurus show that Ford can make quality, fuel-efficient vehicles to compete with Toyota and Honda.
Ford is ahead of GM in its use of common vehicle platforms. Read more 

Bears Say

The auto industry is very cyclical, and until recently, Detroit automakers had been losing significant U.S. market share to foreign automakers for years.
Long-term profitability could be hindered by unions, which traditionally have wanted their share of the pie. The nonunionized import automakers in the U.S. do not have this problem.
Ford's stock can sell off heavily on macroeconomic fears, even if the company itself is doing well. Furthermore, it takes significant investment to fund growth in the auto industry, which limits potential margin expansion. Read more 


Ford's capital allocation has dramatically improved the past few years. Return on invested capital has easily exceeded cost of capital the past for four of the past five years, and we are pleased to see Ford use its cash to substantially reduce debt.  Read more 


Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands. The company has about 14.9% market share in the United States and about 7% share in Europe. Sales   Read more 

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