Like To See Increasing Sales? Buy Ford

| About: Ford Motor (F)

Today, Ford (NYSE:F) announced that March U.S. sales were up 6% to 236,160 units sold. The stock has performed well over the past year but still has a lot of value and growth to offer investors. Below is a fundamental look at Ford as well as an overview of its growing sales.

Ford has a market cap of $50.69 billion and currently trades for $13.07 a share. YTD the stock is up 0.3% and trades 9% off of its 52-week high of $14.20. Analysts are optimistic about the stock and have a mean target of $15.14 and median price target of $15.00 on the shares. 17 analysts have an average EPS estimate of $0.39 for the upcoming 1st quarter on estimated revenues of $33.77 billion. This implies sales will be 9.6% higher than last years' 1st quarter sales with EPS staying the same. Per Yahoo, Ford has beat earnings expectations in the last four quarters and, with rising revenues and the same estimated EPS, I expect another earnings beat.

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  • Ford's U.S. January sales were up 22% to 166,501 units sold; best since 2006.
  • Ford's U.S. February sales were up 9% to 195,822 units sold.
  • P/E of 9.3, ROE of 36.6 and P/S 0.4 are all above the industry averages 29.9, 14.9, and 0.5 respectfully.
  • Operating margins of 4.7% are above the industry average of 4.3%.
  • Dividend yield of 1.94%.
  • Coupled with rising sales, basic material prices are very low and Ford stands to benefit from this with increased margins.

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Bottom Line

Despite rapidly rising sales and earnings beats, Ford shares still trade with a very low P/E, which indicates that they are being weighed down more by sentiment than fundamentals. With the cost of lending and basic materials at historic lows, Ford is in the perfect position to profit and continue to grow in 2013.

Disclosure: I am long F. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.