Buffett Brain · Research note
Score updated 28 Oct 2026 · analysis from 26 Sept 2026
F· Consumer Discretionary
Ford
Ford's negative earnings yield and low ROIC signal a lack of competitive moat and profitability issues.
Buffett fit
Weak fit
Owner
0
Durability
16
Management
16
Price
70
Score updated 28 Oct 2026 · analysis from 26 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Ford privately, we would face the challenge of improving profitability and returns on capital.
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Ford's durability is questionable given the competitive pressures and technological shifts in the automotive industry.
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Ford's has not created significant shareholder value, as evidenced by a market cap decrease relative to retained earnings (-0.31).
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Ford's current valuation metrics, such as a of -8.8 and an EV/ of 75.8, do not provide a .
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
4- 1Revenue CAGR 5y of 8.26% indicates some top-line growth.
- 2Dividend yield of 4.47% provides income to shareholders.
- 3Significant YoY growth of 85.0% suggests recent cash flow improvement.
- 4Market cap of $50.68B reflects substantial scale in the automotive industry.
Concerns
7- 1 (TTM) of 0.99% is well below sector top-quintile of 13.7%, indicating poor capital efficiency.
- 2Negative net margin of -3.22% highlights profitability challenges.
- 3Debt/Equity ratio of 4.20 and Net debt/EBITDA of 13.96 indicate high .
- 4Interest coverage of 0.9 suggests vulnerability to rising interest rates.
Price history
$11.71-31.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Ford Motor Company operates through various segments, including Ford Blue, Ford Model e, and Ford Pro, offering a range of vehicles and financing services. The company generates revenue through the sale of vehicles and related services, as well as through financing and leasing. Despite its scale, the is only 9.18%, indicating low and high cost structure. The unit economics are challenged by the need for continuous capital investment.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 27, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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Similar companies in Consumer Discretionary
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