Ford Motor Time to Buy the Stock?

To be straight up No not for me there are too many concerns about owning the Ford Motor Stock right now. To be fair its not all Ford Motors fault either. We have inflation problems so higher interest rates, higher prices on new cars, and Supply Chain Problems which they disclosed Ford Motors had to spend $1 Billion more in 3rd Quarter because of Supply Chain Problems.

Ford said it expected to end the third quarter with 40,000 to 45,000 mostly completed vehicles that cannot be shipped to dealers because they are missing certain components that’s higher than the company had expected in July about 53,000 Vehicles were not completed so you’re having a bunch of cars and trucks just sitting there at the Ford Lots waiting to be assembled fully so that they could be sold.

CEO Mark Fields stated on Oct 12 that there are different size microchips from consumer products like cell phones, and computers versus vehicles but they are seeing a lot better flow of product coming through for the auto industry but it’s still tight on supply so would need to have to work itself out.

Ford Sales

Now Ford Motors reported its sales in the third quarter increased about 16% compared with a year earlier, despite a larger-than-expected decline in September. Ford Motor reports sales every month they sold 142,644 vehicles last month, an 8.9% decline from a year earlier.

Profit Margins

Now another major red flag is their overall profit margin it’s not that strong below is Ford vs Tesla. I also shared the total Debt and Cash of both companies. I know it’s not apples to apples but Ford did state they wanted to come after Tesla business. Doesn’t look like that is going to happen anytime soon.

Ford

Profit Margin 7.88%
Operation Margin 7.88%

Telsa

Profit Margin 14.17%
Operation Margin 16.14%

Total Cash with Debt

Ford

Total Cash $28.22 Billion
Total Debt $130.23 Billion

Telsa

Total Cash $18.92 Billion
Total Debt $6.66 Billion

The big Unknown is When not if the economy slows down and throw in Ukraine Situation gets worse the stock price will be going lower from where it closed on Friday at $11.67. I do believe if Ford Motors could weather the challenging Business environment & the Geo-Political events cool down or better yet go away their EV Vehicles could be a big win for Ford Motors but I believe that won’t happen until 3rd or 4th quarter of 2023 to gauge it.

To conclude I will be buying Ford Motor Stock if we see single digits.