Should You Buy Ford While It's Below $15?

Core Insights - Ford Motor Company experienced a significant share price increase of 33% in 2025, outperforming competitors like Tesla [1] - The current trading price of Ford shares is below $15, which may attract long-term investors looking for value [2] Financial Performance - Ford's average quarterly operating margin over the past five years has been just 2.5%, indicating challenges in profitability [6] - The company has a market capitalization of $53 billion and a forward price-to-earnings ratio of 9.3, which is significantly lower than the S&P 500's ratio of 22.3 [8][10] - Ford's total return over the past 10 years is 61%, which is substantially below the S&P 500's return of 297% [9] Business Challenges - Ford's business model is cyclical, with large purchases made infrequently by consumers, making it vulnerable during economic downturns [5] - The company has announced $19.5 billion in special charges related to restructuring, particularly affecting its electric vehicle operations [7] - Ford's historical inability to forecast industry changes accurately has contributed to its underperformance [7][9] Investment Considerations - The stock offers a dividend yield of 4.54%, with a quarterly payout of $0.15, which may appeal to income-focused investors [11] - However, the sustainability of the dividend is questionable, especially during economic downturns when vehicle demand may decline [11][12] - Despite the attractive valuation, the overall perception of Ford as a subpar business may limit its appeal to investors [10]