Ford's revenue growth has been modest, with a 1.92% increase in FY 2023, reaching $169.09 billion, up from $165.9 billion in FY 2022. This growth is primarily attributed to the demand for hybrids and traditional internal combustion engine (ICE) vehicles. Although the company has seen a slight market share increase in the US auto market, this growth is below the higher rates seen in the EV sector, indicating a need to accelerate its EV initiatives. Ford holds a strong market position in its ICE segments but is facing increasing competitive pressures, particularly in the EV sector.

Ford's long-term growth potential faces considerable constraints due to its slow EV ramp-up, despite its focus on hybrids which have shown some success with sales increasing by almost 50% YoY in 2024. The company's Model e division continues to lose money, with a negative EBIT margin of -104.4% in Q3 2024, and is struggling to keep up with the pace of innovation of its competitors, particularly from Chinese EV manufacturers and Tesla. The frequent vehicle recalls and high warranty costs pose considerable operational and financial risks. While Ford maintains a broad global presence, the company's cuts to jobs and production in Europe, as well as the cancellation of an electric SUV project, indicate a lack of confidence in that market. Therefore, the growth outlook is moderate and faces considerable execution risks.

Ford's valuation is complex, offering both potential and risks. The company's P/E ratios, and the A grade for Valuation by Seeking Alpha may suggest undervaluation, but this is partly due to investor concerns about Ford's EV strategy and long-term competitiveness. The stock shows a limited upside trend in the market, which signals potential undervaluation, although the EV to revenue metrics are comparable to peers. Given these metrics, I will have the market dynamics at 5.

Ford faces a multitude of risks including growing competition in the EV sector, trade and tariff risks, and high levels of existing debt. The company's new EV investments are not yet showing positive performance, adding to execution risk. Additionally, the NHTSA is investigating about 1.3 million Ford F-150 pickup trucks, which could lead to significant costs. These factors combine to create a high risk profile.

Ford's innovative strength is average. The company also has plans to work with Amazon Web Services (AMZN) to make its vehicles Software Defined Vehicles, or SDVs. New generation Chinese vehicles are SDVs now. Given the lack of information about the timeline, I am keeping the score neutral.

The company will be facing intense pressure in both ICE and in EV, giving other companies reign to grab market share. This will increase execution risks and threaten long-term sustainability, with Japanese vehicle companies being less influenced by China or Canadian trade. Accordingly, the score is low.

Ford is sensitive to inflation, interest rates and consumer sentiment. The new landscape of import tariffs with waning consumer sentiment will likely force the automaker to lower guidance and face a 35% loss of free cash flow. For these reasons, the score is average.

Although it holds a strong presence, Ford is still working towards expanding its total addressable market (TAM). The company's EV market penetration remains below expectations due to competition. This limits the company's ability to expand into new markets. All of this leads to a moderate score.

Ford does have to contend with many geopolitical concerns in South Korea and China due to potential tariffs and trade regulation. But it has a stronger domestic footprint than GM and has been stockpiling on parts that comply with the current U.S.-Mexico-Canada trade agreement. This gives the company a leg up for being seen as an investable company.