FMP
Ford’s New Segment Reporting Preview
Mar 20, 2023 8:42 PM - Davit Kirakosyan
Image credit: FMP
Deutsche Bank analysts provided a preview of Ford Motor Company (NYSE:F) regarding new segment reporting. The company is expected to disclose profits/losses for its three new business units, Ford Blue, Ford Pro, and Model e, and the analysts estimate the respective segment economics and believe that the EV business could report much deeper losses than investors expect, which could make Ford’s target for 8% EV EBIT margin by 2026 particularly difficult to achieve.
Deutsche Bank’s analysis suggests that based on an EV cost disadvantage of $25,000-27,000 per vehicle disclosed by Jim Farley last year, Ford could be incurring gross losses of $9,000 per EV unit, and its Model e segment may report $6 billion in 2022 operating losses after accounting for approximately 65% of the automaker’s R&D investments.
While a potential silver lining from Ford’s new disclosures could be the high profitability of its Ford Pro business, the analysts wonder if this could come under pressure as the segment ramps up vehicles with expensive electric powertrains, potentially offsetting the benefit from higher take-rate of software, telematics, and services.
Other Blogs
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
P/E Ratios Using Normalized Earnings
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
What is Price To Earnings Ratio and How to Calculate it using Python
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
VMware Stock Drops 12% as China May Hold Up the Broadcom Acquisition
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...
