Ford's F European Numbers Outperform Market

Tickers in this article: F

NEW YORK (TheStreet) -- Ford  has reported that European sales were up 11.6% in February, moving the car company's European market share up 20 basis points to 7%.

The automaker's VP of Marketing Roelant de Waard released a statement on Friday saying, "Our sales and share performance in February marked another step forward for Ford as we progress in our plan to return to profitability in Europe in 2015."

Must Read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Last month's performance outpaced the industry mark of 8% growth during February. The Detroit car company has seen brand recognition in Europe -- the U.K. especially -- grow immensely over the years, led by its mid-sized sedan, the Ford Focus.

The Ford Focus is currently the U.K.'s most common car, accounting for 1.46 million of the 32 million cars in the country. The smaller Ford Fiesta is the second most driven car in the U.K, accounting for with 1.42 million cars on the road. The Ford Mondeo rounds out the top eight with 563,000 vehicles in use across the pond.

TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate FORD MOTOR CO (F) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 3.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 187.25% to $315.00 million when compared to the same quarter last year. In addition, FORD MOTOR CO has also vastly surpassed the industry average cash flow growth rate of 29.70%.
  • FORD MOTOR CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, FORD MOTOR CO increased its bottom line by earning $1.75 versus $1.42 in the prior year. For the next year, the market is expecting a contraction of 21.1% in earnings ($1.38 versus $1.75).
  • You can view the full analysis from the report here: F Ratings Report
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.