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Ford Motor Co Scores 74% Under Peter Lynch's Strategy

Ford Motor Co scores 74% using Peter Lynch's P/E/Growth strategy, indicating strong balance sheet criteria. Investors may find this rating encouraging for stock performance amidst large-cap valuations.

Date: 
AI Rating:   6

Fundamental Analysis of Ford Motor Co

According to the report, Ford Motor Co has achieved a score of 74% using Peter Lynch's P/E/Growth Investor model. This model focuses on stocks that are considered reasonably priced relative to earnings growth, whilst also reflecting strong fundamentals.

Earnings Per Share (EPS) Growth Rate: The report indicates that the EPS Growth Rate for Ford Motor Co is rated as a PASS. This is a positive indicator for investors, suggesting that the company's earnings are growing and may lead to higher stock prices.

P/E/Growth Ratio: Ford Motor Co also passes the P/E/Growth Ratio test, indicating the stock's price relative to earnings growth is favorable. This aspect can further encourage investors looking for value in their stock purchases.

Sales and P/E Ratio: Another area where Ford excels is in the Sales and P/E Ratio, which also shows a PASS. This suggests a strong relationship between sales performance and market valuation, which is attractive to potential investors.

Inventory to Sales: A PASS on the Inventory to Sales metric indicates that Ford manages its inventory well, which can enhance profitability and stock performance.

Total Debt/Equity Ratio: On the downside, the Total Debt/Equity Ratio is marked as a FAIL. This could raise concerns regarding the company's leverage and risk profile, potentially leading to volatility in stock prices.

Free Cash Flow and Net Cash Position: Both Free Cash Flow and Net Cash Position are rated as NEUTRAL, suggesting stability in cash generation but not signaling significant strength that could buoy investor appetite.

Overall, while Ford Motor Co shows strong fundamentals in key areas, the failure in the Total Debt/Equity Ratio may pose some risk factors that investors should keep in mind.

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