F - Ford: Textbook Cyclical - Why A Better Price Is Needed

2024-05-23 03:55:49 ET

Summary

• Ford is a mature company that has historically traded between $10 and $20, given its cyclical nature.
• It should be valued not just as a carmaker, but also a financial company through Ford Credit.
• While the current dividend near 5% is nice, a buy case doesn't exist unless it goes below $10, at which case, its balance sheet creates a margin of safety.

Ford Motor Company ( F ) is one of those companies that's always been around and likely always will be. If you learned from Peter Lynch's writings and talks in the 80s and 90s, you will probably remember that he had a thesis on it then, and it's one that must always evolve as this company ages. For my part, I had to take my focus in for service today, and while I'm stranded at my local Starbucks, I figured I'd cover what's on topic for me.

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