Ford Motor Company (F), Toyota Motor Corporation (ADR) (TM), Honda Motor Co Ltd (ADR) (HMC): This Automaker Is Firing on All Cylinders

Even in Europe, where new vehicle sales are at 20 year lows, Ford seems to be moving in the right direction as restructuring plans are already having an effect on the company´s financials. Ford has raised its guidance for its European operations from a $2 billion loss to $1.8 billion in expected losses for the year.

Still Cheap

Ford has made a remarkable turnaround over the last years from multiple points of view: the products are definitively much better; it has gained market share versus the competition and strengthened its balance sheet. Earnings and cash flows have increased considerably, and the company is well positioned for growth in several key areas.

On the other hand, the stock is up by a whopping 90% over the last 12 months, and nearly 30% since the beginning of 2013. Keeping this in mind, investors may be wondering if the automaker still has gas in the tank or if it’s already too late to join the ride.

The main point to consider is that, even after the huge run-up over the past months, the stock is still reasonably valued. In fact, when compared against peers like General Motors Company (NYSE:GM), Honda Motor Co Ltd (ADR) (NYSE:HMC) and Toyota Motor Corporation (ADR) (NYSE:TM), Ford has the lowest P/E ratio, the highest dividend yield and the best track record in earnings per share growth over the last five years of the whole bunch.

Forget about the rearview mirror, investing is about the windshield, and Ford is on the road to more gains.

Bottom Line

Ford is benefiting enormously from booming truck sales in the U.S. and the company is proving to consumers and investors that it can successfully compete is smaller vehicles with products like Fusion and Escape. Financial performance is strong across the board, and the stock is still attractively valued. This automaker is moving forward at full speed.

The article This Automaker Is Firing on All Cylinders originally appeared on Fool.com and is written by Andrés Cardenal.

Andrés Cardenal has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Andrés is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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