Will Ford Reach $100?
Article Coverage: Ford Motors Stock Performance, Earnings Information, Ford Stock Prediction, Will Ford Reach $100?
Latest Ford Stock Price
| Metric | Value | Trend |
|---|---|---|
| Current Price | $12.90 | Higher |
| Trading Volume | $66.3 M | Higher |
Ford Stock Performance in the Last 12 Months
| Last 5 Days | +1.3% |
| Last 1 Month | +8.7% |
| Last 6 Months | +8.9% |
| Last 12 Months | +19.9% |
About Ford Motor and Ford Stock
Ford Motor Company, commonly known as Ford, is an American multinational automaker headquartered in Dearborn, Michigan. Founded by Henry Ford in 1903, Ford has been a significant player in the automotive industry for over a century. The company manufactures and sells automobiles, commercial vehicles, and automotive parts worldwide. It operates through three main segments: Automotive, Mobility, and Ford Credit.
Ford’s stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol “F.” Ford stock has been trading below $20, however, many analysts believe that the Ford stock could reach $100 in the future. Therefore a question arises, when and how will Ford stock reach $100?
First Some Analysts Target and Prediction for Ford Stock
Analysts Target
| Analysts | Price Target |
| Piper Sandler | $13 |
| Morgan Stanley | $16 |
| Barclays | $15 |
| Citigroup | $16 |
| RBC Capital | $12 |
Ford Stock Long-Term Prediction
- Ford Stock Price Prediction 2024 is $18.5
- Ford Stock Price Prediction 2025 is $25.9
- Ford Stock Price Prediction 2026 is $35.5
- Ford Stock Price Prediction 2027 is $42.1
- Ford Stock Price Prediction 2028 is $71.9
- Ford Stock Price Prediction 2029 is $90.1
- Ford Stock Price Prediction 2030 is $121
The analysts think that the Ford stock will not reach $100 in 2024. Additionally, there is very less chance of Ford reaching $100 in the next 5 years but our predictions show that the stock could reach $100 in 2030.
Calculation for Can FORD Stock Reach $100?
For Ford stock to reach $100, it would need to increase by a factor of 8 from its current price. At $100, Ford Market Cap will be $398.6 Billion. If Ford were to grow at a rate of 25% each year, it would take about 10 years to reach $1000. Let us evaluate this data
- Quality of Investment– Good
- Time and Growth required to reach $100– Feasible
- Market Cap at $100– Feasible
Considering the criteria Quality of Investment, growth required, and time required, Ford has a good chance of reaching $100.
Will Ford Reach $100? Earnings
Ford Motors Fourth Quarter and Full-Year 2023 Earnings Report
Fourth Quarter Highlights:
- Revenue: $46 billion, representing a 4% increase from the same period last year on comparable vehicle volumes. Net pricing was favorable.
- Net Loss: $526 million, attributable to a $1.7 billion pretax, non-cash accounting loss related to the remeasurement of pension and other postretirement employee benefits plans.
- Adjusted Earnings Before Interest and Taxes (EBIT): $1.1 billion.
Full-Year 2023 Highlights:
- Revenue: $176 billion, up 11% from the previous year.
- Net Income: $4.3 billion.
- Adjusted EBIT: $10.4 billion, essentially flat year-over-year and at the high end of guidance.
- Operating Cash Flow: $14.9 billion.
- Adjusted Free Cash Flow: $6.8 billion, significantly better than the company’s outlook.
- Profitability and Cash Flow from Outside North America: Showed a reversal from a combined loss of about $2 billion in 2020.
- Ford’s balance sheet remains strong, with nearly $29 billion in cash and more than $46 billion in liquidity at the end of the year.
Outlook for Full-Year 2024:
- Adjusted EBIT: Expected in the range of $10 billion to $12 billion.
- Adjusted Free Cash Flow: Expected in the range of $6 billion to $7 billion.
- Capital Spending: Expected to be in the range of $8 billion to $9.5 billion.
Ford Motors Earnings (Last 4 Quarters)
| (USD) | Sept 2023 | June 2023 | Mar 2023 | Dec 2022 |
| Revenue | $44B | 44.95B | 41.47B | 44B |
| Net income | $1.2B | 2.0B | 1.76B | 1.29B |
| Diluted EPS | 0.3 | 0.47 | 0.44 | 0.32 |
| Net profit margin | 2.7% | 4.5% | 4.24% | 2.93% |
| Operating income | 1.1B | 2.46B | 1.86B | 1.47B |
| Net change in cash | 1.2B | 1.28B | -2.98B | 3.62B |
| Cost of revenue | 37.5B | 37.4B | 36.94B | 40.03B |
Will Ford Reach $100? Bull Case
Ford has demonstrated robust financial performance in recent quarters, with the company reporting strong financial results. In the second quarter of 2023, Ford recorded a net income of $1.92 billion, showing a significant increase of 187%. This impressive financial performance has the potential to enhance investor confidence and contribute to an upward movement in the stock price.
Ford is making substantial investments in electric vehicles (EVs), allocating a budget of $50 billion towards EV development by 2026. The company plans to reach an EV capacity of 600,000 by 2023 and 2 million units by 2026. Ford plans to spend $50 billion till 2026 to grow the EV electric vehicle division called Model e. This strategic investment positions Ford to capture a substantial portion of the expanding EV market. As the EV market continues to grow, it is anticipated that Ford’s stock price will rise in parallel.
In recent years, Ford has witnessed improvements in its reputation. The company has received a commendation for its unwavering commitment to safety and quality. This positive reputation has the potential to attract investors and positively impact the stock price of Ford.
Will Ford Reach $100? Bear Case
Competition poses a significant challenge for Ford in the fiercely competitive automotive industry. The company faces tough competition from major automakers such as General Motors, Toyota, and Tesla. This intense competition could present difficulties for Ford in terms of maintaining its market share and subsequently driving up the stock price.
Additionally, an economic downturn or recession could adversely affect Ford’s sales and profitability. A decline in consumer spending during such periods could result in reduced demand for vehicles, impacting Ford’s sales volume and overall financial performance. Consequently, a downturn in the economy could lead to a decline in Ford’s stock price.
Will Ford Reach $100: Conclusion
It is not a question of if, but a question of when will Ford stock reach $100. It is a fact that Ford stock has underperformed the S&P 500 index for most years in the last two decades and it is nowhere near Tesla in terms of EVs delivery, but it is firing all cylinders to catch the EV train. F-150 lightning trucks are the most sold truck in the United States and Ford is providing cushion to its EV business with conventional vehicle profits.
The biggest disadvantage of Ford is its non-dominance in any particular segment or particular geographical area. Unless Ford dominates or does not take a major chunk of the market share of EVs, it will be impossible for its stock to reach $100, be it by 2031 or even 2040.
Note: Please consult a registered investment advisor to guide you on your financial decisions.