Where is Ford Heading?

The Ford F150 PickupIf the Ford Motor Company just produced the F-Series pickup it would make more profit than corporations like McDonald’s, 3M and the US Bank.

Many people underestimate or don’t realise just how important the pickup business is to Ford in the US and around the world. Ford has talked about dropping most of its sedans in North America as it continues the move to the market of the more profitable SUV’s and pickup trucks.

We read that Ford expect the F-Series pickup truck business to produce $42 billion in revenue for 2018 and that should create earnings before interest, taxes and other items of more than $10 billion, and to produce net profit of around $6.5 billion, therefore making the F-Series alone rank well inside the top 50 companies in America.

Ford SUVThe F-150 has been the best-selling vehicle in America for years running with a market capitalization of around $47 billion. Ford’s pickup business has levels of value vastly underestimated by the market and according to reports will continue to be the backbone of Ford’s business for some time yet.

It could be that the stock market does not appreciate the extremely large value and importance of the F Series business, or that it offsets that large value with an implied negative value for the rest of the Ford’s business.

One report we have seen says that out of all the companies under the automotive watch, Ford has the greatest opportunity to show it has a hand to play for the future of the industry especially in the SUV and Truck market.

June 2018
 

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