• The Ford Motor Company was founded in 1903 by American industrialist Henry Ford
• Ford was the first automaker to introduce the assembly line, which dramatically reduced production costs and saved time and money. Ford was also the first automaker to include seat belts as standard equipment in 1955
• The company is listed on the New York Stock Exchange, under the ticker symbol “F”. The Ford Motor Company had its IPO in 1956
• Ford is a component of the S&P 500, which is the benchmark index of the United States stock market
• As of 11 April, Ford had a market capitalization of over $50 billion 
• Ford was one of the three American automakers that avoided bankruptcy during the 2008 financial crisis (General Motors and Chrysler being the other two)
• Ford has been investing heavily into electric vehicles - releasing the Ford F150 Lightning to the public in 2022 and the company has plans to invest $22 billion in EV production through 2025
• Ford is a dividend-paying company with an annual dividend yield of 4.65% as of April 2023
• The Ford family, which owns around 2% of the company's shares, still maintains significant control over the company through a special class of shares
• In 2006, Ford's stock was removed from the Dow Jones Industrial Average after over 80 years of being included in the index

The 2022 fiscal year has seen a major challenge for the automotive industry. High inflation and supply chain constraints meant that material costs soared throughout the year, which put a major strain on the bottom line of automotive companies around the world. Ford was also heavily affected by these issues and the company’s stock performance and financials clearly reflect the damage. 

Over the course of a 12-month period, Ford’s stock lost around 20% of its market capitalization, as the company struggled to contend with difficult market conditions. However, the release of the all-electric Ford F150 Lighting truck proved that Ford has a clear vision of its place in the EV industry and has taken the transition to electric vehicles seriously. A compelling pipeline of upcoming all-electric vehicles, as well as a gradually improving supply chain, have led to some analysts identifying Ford as one of the largest, yet undervalued, stocks on the market today. On the other hand, Ford’s slow growth and shrinking profits have meant that investors are shying away from buying up the stock at present value.

Ford is a dividend-paying company that maintains a current dividend yield of 4.73%, or $0.15 per share, which is an attractive offering for most dividend investors. 

As for financial performance, Ford’s Q4 2022 report highlighted the negative effects of supply chain issues on the company’s bottom line:

• Revenue increased by 16.78% to $44 billion
• Net income shrunk by 89.5% to $1.29 billion
• Diluted EPS dropped 89.47% - reaching 0.32

Ford’s bottom line has been nearly cut in half thanks to supply chain issues caused by the russian invasion of Ukraine, which disrupted the supply of materials necessary for Ford’s complex assembly line. With the aforementioned issues still ongoing, it is unlikely for Ford stock to gain substantial upward momentum in 2023. 

Before investing in Ford stock, it is important to consider the inherent advantages and disadvantages that come with owning Ford stock. 

Pros

• Brand recognition - Ford is a globally-recognized brand with millions of loyal customers around the world, which gives it an edge over newcomers to the automotive industry
• Dividends - Ford has a long history of dividend payments, which makes it an attractive investment for institutions and long-term investors 
• Electric vehicles - the company has been actively introducing EVs to its long lineup of vehicles and has launched the Ford F150 Lighting to commercial success 
• Valuation - Ford’s current valuation is lower than that of industry peers, which can make Ford an attractive investment once its operational performance starts improving 

Cons

• Cyclical industry - the automotive industry can be highly cyclical, which may be unfavorable for some investors. Ford’s stock performance can depend on factors such as consumer confidence, gas prices, economic conditions, etc.
• Competition - the global automotive industry is fiercely competitive, which is a constant threat for all players involved, regardless of their past performance 
• Operational issues - Ford has struggled with pension costs and other operational issues, which can be difficult for a dividend-paying company to contend with 
• Dependence on trucks - a bulk of Ford’s revenue comes from its F-Series pickup trucks, which makes the company particularly susceptible to lower consumer demand for trucks 
• Ford family influence - the Ford family still maintains control over key decisions made by the company, which can lower the ability of other shareholders to implement meaningful change whenever necessary 

• Founded in 1903, the Ford Motor Company has become one of the largest and most well-known automobile companies in the world
• Ford listed its shares on the New York Stock Exchange in 1956 and has since become a member of the S&P 500. The stock is also a former component of the Dow Jones Industrial Average 
• Operational issues and supply chain disruptions have hampered Ford’s ability to generate high profits, which is an immediate issue faced by shareholders, as Ford may not be able to consistently increase dividend payouts in the future 
• Ford has fully embraced the transition to electric vehicles and has released the F150 Lightning to the market 
• Ongoing supply chain issues hamper the growth targets of Ford stock in the near future