NEW YORK (TheStreet) -- Ford Motor Co. (F - Get Report) ranking in a closely watched new-car-quality study rebounded to the industry average after years of below-par grades tied to consumer complaints about its MyFord Touch multimedia system, the Wall Street Journal reports.
Ford moved up 11 places to 16th place in the J.D. Power & Associates Initial Quality Study, which annually compiles the rankings based on problems reported by owners during their first 90 days of ownership.
The advance could signal that Ford is beginning to move past earlier problems with the entertainment and phone system. Consumers have complained about glitches in the software and the system being too difficult to use, the Journal said.
- F's revenue growth trails the industry average of 22.7%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 952.13% to $2,220.00 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 42.69%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Automobiles industry and the overall market, FORD MOTOR CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- FORD MOTOR CO's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings 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 24.0% in earnings ($1.33 versus $1.75).
- You can view the full analysis from the report here: F Ratings Report