How to buy Ford shares | $6.19

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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.

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 price

Use our graph to track the performance of F stocks over time.

Ford shares at a glance

• Key figures

Information last updated 2020-09-20.

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
Target price	USD$7.66
PE ratio	674
Dividend yield	USD$0.6 (11.17%)
Earnings per share (TTM)	USD$0.4

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

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.

Technical Analysis of Ford Motor Company by TradingView

Ford price performance over time

Historical closes compared with the last close of $6.19

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

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.

Ford financials

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%
Profit margin	-1.63%
Book value	7.748
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

Ford Motor Company was last rated for ESG on: 2020-08-01.

Total ESG score	30
Total ESG percentile	54.8
Environmental score	7.54
Social score	9.22
Governance score	8.73
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 overview

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.

Frequently asked questions

• What percentage of Ford is owned by insiders or institutions?

  Currently 0.176% of Ford shares are held by insiders and 55.063% by institutions.

• When does the fiscal year end for Ford?

  Ford's fiscal year ends in December.

• Where is Ford based?

  Ford's address is: One American Road, Dearborn, MI, United States, 48126

• What is Ford's ISIN number?

  Ford's international securities identification number is: US3453708600

• What is Ford's CUSIP number?

  Ford's Committee on Uniform Securities Identification Procedures number is: 345370100