Company Analysis : Ford Motor Company

1299 Words Oct 25th, 2015 6 Pages
As a financial analyst who is providing advice to a client, one will perform research to several companies using information provided by independent firms. The analysis will explain the details of financial information, as well as make recommendations on their values as investments (Lasher, 2014). Although there are thousands of publicly traded companies, one will only research the following four companies: Ford Motor Company (Ford), Harley-Davidson, Inc. (Harley), Starbucks Corporation (Starbucks), and Microsoft Corporation (Microsoft).
Incorporated in 1919, Ford is a global automobile manufacturer (Rowley, 2015). In addition, they provide financial services through their subsidiary credit company (Rowley, 2015). In 2014, Ford sold
…show more content…
The stock is trending up because it has gained 13.4% over the past 52 weeks, compared to 5.8% for the S&P 500 (F Interactive …, 2015). Additionally, the 50 Simple Moving Average (SMA) has been just below the stock price for the same time period; thus, not considered a volatile stock (F Interactive …, 2015).
To compare Ford’s stock to the market, market value ratios are used. For example, one of the ratios is the price/earnings (P/E) ratio. The P/E ratio indicates the value that the market places on the company (Lasher, 2014). Ford’s current P/E ratio is 16.92; therefore, the stock is selling at 16.92 times earnings (F Interactive …, 2015).
According to Goldman Sachs, Ford’s stock was upgraded from Neutral to Buy in June 2015 (F Analyst …, 2015). Moreover, sixteen professional analysts have a low price target at $15, but a high target of $23 (F Analyst …, 2015). Nonetheless, Ford’s median price target is $18 (F Analyst …, 2015).
While Ford manufactures automobiles and trucks, Harley manufactures motorcycles (Wandell, 2015). Incorporated in 1981 and publicly held since 1986, Harley operates globally in two segments: motorcycles and financial services (Wandell, 2015). As a result of their worldwide influence, Harley had a 53.3% market share of new motorcycle registrations in the United States for 2014 (Wandell, 2015).
For year ending December 31, 2014, Harley posted sales of 6.2 billion

More about Company Analysis : Ford Motor Company

Open Document