F (Ford $11.71) has made great company changes in order to sustain in the automotive industry. With a growing revenue of only 3.28% from 2017, many investors have mixed feelings about the business operation.
In this time in the automotive industry, there is a high demand for sport-utility and pickup truck vehicles. From F discontinuing their sedan models, they are projecting a lucrative return for this year and the year of 2019.
With a forgiving dividend history of $0.15 per share (since 2014), they have a very low GPR (Gross Profit Revenue) of 16% and spend almost half of their revenue in SGA costs. F‘s financial track record could be better (in my humble opinion), yet many investors are considering the stock a buy at its low price. But is it worth the investment?
Their $11 million dollar free cash flow has given the company little room to work with reinvestments. Investors hold the company accountable for their bright outlook on the next 5 years to come.