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Ford Dec 2014 + 2014 Year End Sales Results


ANTAUS

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Before competent overseas competition, the lean years didn't really impact the domestics. Since then, the downturns, it seems, have always taken more than the upturns have given--until the most recent downturn--and that just for Ford. The lesson, it seems, has not been lost on them.

 

By contrast, it seems that FCA and GM are content to have manufacturing capacity that turns out ~5% net margins at a 17M SAAR, and that does not seem like a very good idea.

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Before competent overseas competition, the lean years didn't really impact the domestics. Since then, the downturns, it seems, have always taken more than the upturns have given--until the most recent downturn--and that just for Ford. The lesson, it seems, has not been lost on them.

 

By contrast, it seems that FCA and GM are content to have manufacturing capacity that turns out ~5% net margins at a 17M SAAR, and that does not seem like a very good idea.

FCA seems to be on the market share at any cost business model, though the strong dollar should be helping them over the next few years.

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I agree. Motley Fool is long in F, and they recommend the stock despite mostly neutral ratings from analysts. While free cash flow is in good shape as of Q3 2014, Ford Motor is subpar when it comes to measures of operating efficiency, especially return on invested capital and equity turnover.

 

Current stock rating by Charles Schwab is a buy with positive ratings for cash flow strength, capital intensity, stock valuation, and geographical diversification. They give a neutral rating for efficient management of working capital. There are a couple of negatives related pure stock market metrics, not related to fundamentals.

 

 

Edited by RichardK
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