F

Ford Motor Co.

Industrial/Transportation


Presented:04/14/2020
Price:$5.29
Cap:$21.04B
Current Price:$10.84
Cap:$43.09B

Presented

Date04/14/2020
Price$5.29
Market Cap$21.04B
Ent Value$159.98B
P/E Ratio180.55x
Book Value$8.15
Div Yield11.34%
Shares O/S3,976.69M
Ave Daily Vol95,579,689
Short IntN/A

Current

Price$10.84
Market Cap$43.09B
Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following three segments: Automotive, Mobility, and Ford Credit. The Automotive segment engages in developing, manufacturing, marketing and servicing of Ford cars, Lincoln vehicles. The Mobility segment includes Ford Smart Mobility LLC and autonomous vehicles business. The Ford Credit segment comprises Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. The company was founded by Henry Ford on June 16, 1903 and is headquartered in Dearborn, MI.

Publicly traded companies mentioned herein: Aptiv PLC (APTV), Ford Motor Co (F), TE Connectivity Ltd (TEL)

Highlights

The presenter is short shares of Ford Motor Co (F), which he believes will have solvency issues (previously discussed by CCN.com in January 2020 and March 2020) as opposed to the near-term liquidity concern many other short investors have highlighted. He notes that the company has a ~$41B EV consisting of a ~$21B market cap and ~$20B of liabilities above the equity. Notably, the company had a net liability balance sheet at the end of last year. While F’s trailing yield on its $2.8B of 2019 company adjusted FCF seems relatively fair on the surface, he states that the outlook for FCF and EBITDAP going forward is much worse. Overall, the presenter believes the company would have solvency issues solely based on the automotive side of the business but also notes that the credit company adds another level to his pessimism. Still, he cautions investors about a potential short squeeze over the remainder of the year as stimulus programs lower the chance of the more documented liquidity concern playing out, and he is sizing the position accordingly.

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Idea Discussion

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