Will Ford Motor Soar Higher?
India is another big player, and Ford is looking to make a big mark there, but it is still far behind other manufacturers there, like Hyundai Motor. Ford is looking to increase its production facilities in both China and India in order to reduce costs, which is a strategic move. In a bullish move, the auto company also plans to increase its models-per-plant average from 3.6 to 4.5 within two years.
In the United States, Ford has 15.9 percent market share, behind only General Motors Company (NYSE:GM) at 18.7 percent. United States auto sales were up 13.4 percent in 2012, and they were up 14.2 percent in January of 2013. This doesn’t guarantee future strength, but it’s a positive sign.
Ford currently has a trailing P/E of 8.52, which is well below the industry average of 24.9. The company also has an ROE of 36.10 percent, which is well above the industry average of 14.9 percent. In addition to that, Ford currently yields 3.20 percent, whereas General Motors yields 1.30 percent. Toyota Motor Corporation (NYSE:TM) doesn’t offer any yield.