Jim Cramer was promoting Ford (F) on his Mad Money show tonight. The Ford CEO has flowery things to say. His company doesn't know how to make money. Here is a quick valuation of Ford for those curious investors that are considering the non-dividend paying Ford.
Ford (F)
Market price: $13.95
Shares: 4.178 billion (diluted in 2010)
Dividend record
Dividend: none since 2006
Dividend yield: n/a
Earning power
5 yr average earnings: ($1.00)
10 yr average earnings: ($0.51)
Earnings are adjusted for changes in capitalization; Ford has been issuing shares for the last five years
EPS Net inc. Adj. EPS
2006 ($6.72) ($12,629 M) ($3.02)
2007 ($1.38) ($2,723 M) ($0.65)
2008 ($6.50) ($14,766 M) ($3.53)
2009 $0.86 $2,717 M $0.65
2010 $1.66 $6,561 M $1.57
Ford has no proven earning power even when going back 10 years.
Balance sheet: declining assets, declining liabilities, and a slightly negative shareholder equity
Book value per share: ($0.16)
Price to book value per share: n/a because it is a negative number
Current ratio: 2.17 (over 2.0 is good)
Quick ratio: 2.07 (over 1.0 is good)
Conclusion: Ford pays no dividend and it is speculatively priced. Don't buy Ford. There are many better high dividend stocks like Safe Bulkers (SB).
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