Every investor wants to get rich from their stock picks, and those who are patient, diligent, and lucky, just might. In the past decade, the biggest gains in the market have largely come from the tech sector. Ford (F -0.65%), a 122-year-old car manufacturer, wants to let the market know that it deserves a place in investors' portfolios too.
This automaker's stock has performed quite well in 2025, up 28% year to date as of Oct. 6. That's well ahead of the S&P 500's gain. There is clearly momentum working to Ford's benefit. But could this stock be a millionaire-maker for its long-term shareholders?
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Ford's professional segment is performing well
One of the notable bright spots for Ford has been its pro segment, which sells vans, trucks, software, and services to commercial and government customers. It's growing at a strong pace, with revenue up by 11% year over year in the second quarter. That was better than the business overall. It's also solidly profitable, putting up an operating margin of 10.7% through the first six months of 2025.
"These high-margin reoccurring revenues make Ford Pro a less cyclical and more durable business," CEO Jim Farley said on the Q2 earnings call.
Investors will also appreciate the stock's valuation. Shares currently trade at a forward price-to-earnings ratio of 9 -- a cheap entry point, and a massive discount to the broad S&P 500's forward P/E of about 22.
Meanwhile, Ford's dividend yield is a robust 4.7%. Investors who are interested in companies that provide sizable income streams might not need to look any further than Ford.
Ford lacks characteristics that point to strong investor returns
The best investments usually involve taking stakes in high-quality businesses that are growing their revenues and earnings at solid rates, and holding onto those shares. This requires picking the right companies, as well as having the patience and discipline to act with a long-term mindset. This gives compound growth the time to work its magic.
There are undeniable reasons to view Ford as something other than a high-quality business. For starters, there's no evidence that it has any durable competitive advantages -- aka, economic moats. Companies that possess such moats are usually able to earn returns on invested capital (ROIC) that are well in excess of their weighted average cost of capital, which indicates the ability to create real economic value. Ford's reported adjusted ROIC was a disappointing 10.1% in Q2. Compare this to a luxury car brand like Ferrari or consumer tech behemoth Apple, both fantastic companies with strong pricing power, and it's clear Ford doesn't fall into the same category.
When it comes to growth, Ford also doesn't give investors much of a reason to be bullish. Its automotive revenue rose at a compound annual rate of just 2.4% between 2014 and 2024. The global auto sector is mature, even though it's undergoing changes due to the increasing penetration of electric vehicles. Ford might experience random periods of above-average sales gains, but they are not indicative of long-term trends.
The company's results are also heavily influenced by macroeconomic factors outside of its control. A car is a major purchase for the average household. And when times get tough and money is tight, new vehicle purchases are more likely to be delayed. This means Ford can experience demand swings that can have a pronounced impact on its already weak profitability. As a result, its dividend might not be that safe, with management potentially choosing to reduce it when economic conditions worsen.
All of this leads me to the conclusion that Ford isn't worthy of investment consideration. And it definitely won't turn its shareholders into millionaires.
