Ford (F, $8.79) cuts down passenger vehicles, focuses on commercial ones
Automaker giant Ford Motor Company announced its decision to stop producing passenger vehicles offered through a joint venture called Ford Sollers with Russian automaker Sollers PJSC while commercial vans will still continue to be produced. Three of the venture’s four factories will be closed in June and Soller’s will own 51% of the joint venture with a fresh focus on commercial vehicles in Russia. This restructuring of the deal between the companies is part of a larger move to boost profitability in Europe.
Ford confirmed that the restructuring will come at a one-time pre-tax expense between $450 - $500 million out of which roughly $250-$300 million will be non-cash accounting charges, and the remainder roughly $200 million will be cash charges. Ford further confirmed that its global restructuring effort will generate a total of about $11 billion in charges over the next few years, with about $7 billion of those charges being cash charges.
But this isn’t the first time that Ford and Sollers have restructured their deal. In 2014, about 1,000 jobs were cut after the company suffered heavy losses in the region. But after its rival General Motors (GM) announced that it would exit the Russian market, Ford took control of the joint venture to amend ways. However, nearly decade-old Russian joint venture hasn't been worth the effort, as Ford never came close to generating the returns it had expected on the invested capital.
The current strategic view of Ford’s Russian business was long overdue as the company has been looking at investing in new products and businesses that had the potential to generate better margins over time. As customers have been more inclined towards low priced vehicle types, Ford has been struggling for some time now. So, it’s good news for investors that Ford will be focusing more on commercial vehicles from now.
F's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for F turned positive on June 20, 2025. Looking at past instances where F's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 27, 2025. You may want to consider a long position or call options on F as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where F advanced for three days, in of 317 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 251 cases where F Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where F declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
F broke above its upper Bollinger Band on June 11, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.235) is normal, around the industry mean (6.217). P/E Ratio (12.306) is within average values for comparable stocks, (17.826). Projected Growth (PEG Ratio) (0.785) is also within normal values, averaging (5.723). Dividend Yield (0.045) settles around the average of (0.042) among similar stocks. P/S Ratio (0.305) is also within normal values, averaging (79.562).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. F’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a manufacturer of automobiles and trucks
Industry MotorVehicles
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