How to buy Ford shares | $6.19
Own Ford shares in just a few minutes.
Ford Motor Company is an auto manufacturers business with stocks listed in the US. Ford shares (F) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$6.19 – an increase of 1.81% over the previous week.
How to buy shares in Ford
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Ford. Find the share by name or ticker symbol: F. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Ford reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$6.19, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Ford, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Ford. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Ford key stats
- Compare share trading platforms
- Is Ford stock a buy or sell?
- Ford performance over time
- Can I short Ford shares?
- Is Ford suitable for ethical investing?
- Are Ford shares over-valued?
- Ford's financials
- How volatile are Ford shares?
- Does Ford pay a dividend?
- Have Ford shares ever split?
- Other common questions
How has coronavirus impacted Ford's share price?
Since the stock market crash in March caused by coronavirus, Ford's share price has had significant negative movement.
Its last market close was US$6.19, which is 21.55% down on its pre-crash value of US$7.89 and 56.31% up on the lowest point reached during the March crash when the shares fell as low as US$3.96.
If you had bought US$1,000 worth of Ford shares at the start of February 2020, those shares would have been worth US$446.55 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$689.32.
Ford share priceUse our graph to track the performance of F stocks over time.
Ford shares at a glance
|Latest market close||USD$6.19|
|52-week range||USD$3.96 - USD$9.6|
|50-day moving average||USD$6.9574|
|200-day moving average||USD$6.0159|
|Dividend yield||USD$0.6 (11.17%)|
|Earnings per share (TTM)||USD$0.4|
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Is it a good time to buy Ford stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Ford price performance over time
|1 week (2020-09-14)||-13.06%|
|1 month (2020-08-21)||-7.06%|
|3 months (2020-06-19)||-0.64%|
|6 months (2020-03-20)||42.96%|
|1 year (2019-09-20)||-32.50%|
|2 years (2018-09-21)||-37.16%|
|3 years (2017-09-21)||-47.18%|
|5 years (2015-09-21)||-56.77%|
Is Ford under- or over-valued?
Valuing Ford stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Ford's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Ford's P/E ratio
Ford's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 674x. In other words, Ford shares trade at around 674x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Ford's PEG ratio
Ford's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.517. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Ford's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Ford's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$6.1 billion (£4.7 billion).
The EBITDA is a measure of a Ford's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$130.4 billion|
|Gross profit TTM||US$12.9 billion|
|Return on assets TTM||-0.51%|
|Return on equity TTM||-6.34%|
|Market capitalisation||US$28.8 billion|
TTM: trailing 12 months
Shorting Ford shares
There are currently 98.4 million Ford shares held short by investors – that's known as Ford's "short interest". This figure is 15.1% down from 115.9 million last month.
There are a few different ways that this level of interest in shorting Ford shares can be evaluated.
Ford's "short interest ratio" (SIR)
Ford's "short interest ratio" (SIR) is the quantity of Ford shares currently shorted divided by the average quantity of Ford shares traded daily (recently around 55.9 million). Ford's SIR currently stands at 1.76. In other words for every 100,000 Ford shares traded daily on the market, roughly 1760 shares are currently held short.
However Ford's short interest can also be evaluated against the total number of Ford shares, or, against the total number of tradable Ford shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Ford's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Ford shares in existence, roughly 20 shares are currently held short) or 0.0278% of the tradable shares (for every 100,000 tradable Ford shares, roughly 28 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Ford.
Find out more about how you can short Ford stock.
Ford's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Ford.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Ford's total ESG risk score
Total ESG risk: 30
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Ford's overall score of 30 (as at 07/31/2020) is nothing to write home about – landing it in it in the 55th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Ford is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Ford's environmental score
Environmental score: 7.54/100
Ford's social score
Social score: 9.22/100
Ford's governance score
Governance score: 8.73/100
Ford's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Ford scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Ford hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||30|
|Total ESG percentile||54.8|
|Level of controversy||3|
Ford share dividends
Dividend payout ratio: 6000% of net profits
Recently Ford has paid out, on average, around 6000% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 11.17% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Ford shareholders could enjoy a 11.17% return on their shares, in the form of dividend payments. In Ford's case, that would currently equate to about $0.6 per share.
Ford's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Ford's most recent dividend payout was on 1 March 2020. The latest dividend was paid out to all shareholders who bought their shares by 28 January 2020 (the "ex-dividend date").
Have Ford's shares ever split?
Ford's shares were split on a 1748175:10 basis on 2 August 2000. So if you had owned 10 shares the day before before the split, the next day you'd have owned 1748175 shares. This wouldn't directly have changed the overall worth of your Ford shares – just the quantity. However, indirectly, the new 100% lower share price could have impacted the market appetite for Ford shares which in turn could have impacted Ford's share price.
Ford share price volatility
Over the last 12 months, Ford's shares have ranged in value from as little as US$3.96 up to US$9.6. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Ford's is 1.3233. This would suggest that Ford's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Ford Motor Company designs, manufactures, markets, and services a range of Ford cars, trucks, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. It operates through three segments: Automotive, Mobility, and Ford Credit. The Automotive segment sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. The Mobility segment designs and builds mobility services; and provides self-driving systems development and vehicle integration, autonomous vehicle research and engineering, and autonomous vehicle transportation-as-a-service network development services. The Ford Credit segment primarily engages in vehicle-related financing and leasing activities to and through automotive dealers. It provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. This segment also offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was founded in 1903 and is based in Dearborn, Michigan.
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