Evaluating Ford (F) Stock's Actual Performance

Core Viewpoint - Ford Motor Company has shown strong performance in the past 12 months, particularly with its F-Series pickup trucks, which have been the best-selling vehicles in the U.S. for 48 consecutive years [1] Group 1: Performance Overview - In the past five years, Ford has produced a total return of 85% as of December 9, benefiting from a recovery after the COVID-19 pandemic [4] - The S&P 500 has outperformed Ford with a total return of 100% over the same five-year period, and a trailing-10-year total return of 298% compared to Ford's 65% [5] - Ford has more than doubled the S&P 500's total return in the past 12 months, driven by solid financial results, especially in Q3, where it exceeded Wall Street's revenue and earnings expectations [6] Group 2: Financial Metrics - Current market capitalization of Ford is $54 billion, with a current share price of $13.63 and a dividend yield of 4.40% [7] - Ford's gross margin stands at 7.58%, and the company pays a quarterly dividend of $0.15 [7] Group 3: Growth and Profitability Concerns - Ford's automotive revenue has grown at a compound annual rate of just 2.4% from 2014 to 2024, which is only slightly above economic expansion [8] - The average operating margin for Ford over the past five years is 2.5%, indicating disappointing profitability [8] - The cyclical nature of demand for vehicles poses a risk, as economic downturns may lead consumers to delay purchasing new vehicles, further impacting Ford's profitability [9]