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Ford Motor Co F

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Ford Fights Through Large Wholesale Drops Due to Semiconductor Shortage To Post Q2 Profit

Analyst Note

| David Whiston, CFA, CPA, CFE |

Ford’s second-quarter results showed the company managed the semiconductor shortage better than it thought it would a few months ago. We are raising our fair value estimate to $20 from $17 on higher revenue growth and improved 2021 profits, a 70-basis-point increase in our midcycle EBIT margin to 5%, time value of money, and a lower cost of debt.

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Company Profile

Business Description

Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands. The company has about 14% market share in the United States and about 7% share in Europe. Sales in North America and Europe made up 69% and 19.5% of 2020 auto revenue, respectively. Ford has about 186,000 employees, including about 58,000 UAW employees, and is based in Dearborn, Michigan.

Contact
One American Road
Dearborn, MI, 48126
T +1 313 322-3000
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 186,000

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