BORGWARNER INC (BWA) Stock Fundamental Analysis

NYSE:BWA • US0997241064

58.73 USD
-0.19 (-0.32%)
Last: Feb 23, 2026, 01:26 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, BWA scores 6 out of 10 in our fundamental rating. BWA was compared to 41 industry peers in the Automobile Components industry. Both the health and profitability get an excellent rating, making BWA a very profitable company, without any liquidiy or solvency issues. BWA has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • BWA had positive earnings in the past year.
  • BWA had a positive operating cash flow in the past year.
  • Each year in the past 5 years BWA has been profitable.
  • BWA had a positive operating cash flow in each of the past 5 years.
BWA Yearly Net Income VS EBIT VS OCF VS FCFBWA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.01%, BWA is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
  • BWA has a Return On Equity of 5.09%. This is in the better half of the industry: BWA outperforms 65.85% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.98%, BWA belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for BWA is in line with the industry average of 9.03%.
  • The last Return On Invested Capital (9.98%) for BWA is above the 3 year average (9.12%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.01%
ROE 5.09%
ROIC 9.98%
ROA(3y)2.92%
ROA(5y)3.51%
ROE(3y)7.31%
ROE(5y)8.54%
ROIC(3y)9.12%
ROIC(5y)8.71%
BWA Yearly ROA, ROE, ROICBWA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • BWA has a Profit Margin of 1.93%. This is in the better half of the industry: BWA outperforms 65.85% of its industry peers.
  • In the last couple of years the Profit Margin of BWA has declined.
  • With an excellent Operating Margin value of 10.21%, BWA belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
  • BWA's Operating Margin has improved in the last couple of years.
  • BWA's Gross Margin of 19.29% is in line compared to the rest of the industry. BWA outperforms 46.34% of its industry peers.
  • BWA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 10.21%
PM (TTM) 1.93%
GM 19.29%
OM growth 3Y2.67%
OM growth 5Y2.32%
PM growth 3Y-31.33%
PM growth 5Y-17.02%
GM growth 3Y-0.58%
GM growth 5Y0.52%
BWA Yearly Profit, Operating, Gross MarginsBWA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BWA is still creating some value.
  • The number of shares outstanding for BWA has been reduced compared to 1 year ago.
  • The number of shares outstanding for BWA has been reduced compared to 5 years ago.
  • The debt/assets ratio for BWA has been reduced compared to a year ago.
BWA Yearly Shares OutstandingBWA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
BWA Yearly Total Debt VS Total AssetsBWA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 3.27 indicates that BWA is not in any danger for bankruptcy at the moment.
  • BWA's Altman-Z score of 3.27 is fine compared to the rest of the industry. BWA outperforms 75.61% of its industry peers.
  • The Debt to FCF ratio of BWA is 3.31, which is a good value as it means it would take BWA, 3.31 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of BWA (3.31) is better than 78.05% of its industry peers.
  • A Debt/Equity ratio of 0.72 indicates that BWA is somewhat dependend on debt financing.
  • BWA has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: BWA underperforms 63.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 3.31
Altman-Z 3.27
ROIC/WACC1.19
WACC8.41%
BWA Yearly LT Debt VS Equity VS FCFBWA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 2.07 indicates that BWA has no problem at all paying its short term obligations.
  • With a Current ratio value of 2.07, BWA perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
  • A Quick Ratio of 1.70 indicates that BWA should not have too much problems paying its short term obligations.
  • BWA has a Quick ratio of 1.70. This is in the better half of the industry: BWA outperforms 73.17% of its industry peers.
Industry RankSector Rank
Current Ratio 2.07
Quick Ratio 1.7
BWA Yearly Current Assets VS Current LiabilitesBWA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 13.66% over the past year.
  • The Earnings Per Share has been growing by 12.79% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 1.63% in the past year.
  • BWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.09% yearly.
EPS 1Y (TTM)13.66%
EPS 3Y2.2%
EPS 5Y12.79%
EPS Q2Q%33.66%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y-3.24%
Revenue growth 5Y7.09%
Sales Q2Q%3.87%

3.2 Future

  • BWA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.24% yearly.
  • The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y6.48%
EPS Next 2Y8.24%
EPS Next 3Y5.71%
EPS Next 5Y6.24%
Revenue Next Year1.85%
Revenue Next 2Y2.59%
Revenue Next 3Y2.44%
Revenue Next 5Y3.87%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
BWA Yearly Revenue VS EstimatesBWA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
BWA Yearly EPS VS EstimatesBWA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.96 indicates a reasonable valuation of BWA.
  • Based on the Price/Earnings ratio, BWA is valued cheaper than 82.93% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.99, BWA is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 11.23, the valuation of BWA can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, BWA is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
  • BWA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.02.
Industry RankSector Rank
PE 11.96
Fwd PE 11.23
BWA Price Earnings VS Forward Price EarningsBWA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWA indicates a rather cheap valuation: BWA is cheaper than 80.49% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, BWA is valued a bit cheaper than 78.05% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.66
EV/EBITDA 6.51
BWA Per share dataBWA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BWA does not grow enough to justify the current Price/Earnings ratio.
  • BWA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)0.94
EPS Next 2Y8.24%
EPS Next 3Y5.71%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.13%, BWA has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.59, BWA pays a bit more dividend than its industry peers.
  • BWA's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.13%

5.2 History

  • The dividend of BWA decreases each year by -3.16%.
  • BWA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-3.16%
Div Incr Years0
Div Non Decr Years0
BWA Yearly Dividends per shareBWA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • BWA pays out 42.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.96%
EPS Next 2Y8.24%
EPS Next 3Y5.71%
BWA Yearly Income VS Free CF VS DividendBWA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
BWA Dividend Payout.BWA Dividend Payout, showing the Payout Ratio.BWA Dividend Payout.PayoutRetained Earnings

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BORGWARNER INC

NYSE:BWA (2/23/2026, 1:26:53 PM)

58.73

-0.19 (-0.32%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners104.12%
Inst Owner Change0.86%
Ins Owners1.03%
Ins Owner Change6.93%
Market Cap12.56B
Revenue(TTM)14.32B
Net Income(TTM)277.00M
Analysts72
Price Target49.71 (-15.36%)
Short Float %5.5%
Short Ratio3.42
Dividend
Industry RankSector Rank
Dividend Yield 1.13%
Yearly Dividend0.56
Dividend Growth(5Y)-3.16%
DP42.96%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.27%
Min EPS beat(2)5.8%
Max EPS beat(2)12.74%
EPS beat(4)4
Avg EPS beat(4)10.42%
Min EPS beat(4)5.8%
Max EPS beat(4)12.74%
EPS beat(8)8
Avg EPS beat(8)12.09%
EPS beat(12)10
Avg EPS beat(12)9.63%
EPS beat(16)14
Avg EPS beat(16)11.95%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0.31%
Revenue beat(4)2
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-0.91%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)4
Avg Revenue beat(12)-0.16%
Revenue beat(16)6
Avg Revenue beat(16)-3.4%
PT rev (1m)-0.04%
PT rev (3m)1.31%
EPS NQ rev (1m)-1.89%
EPS NQ rev (3m)-2.92%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-2.23%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)-1.25%
Revenue NY rev (3m)-1.37%
Valuation
Industry RankSector Rank
PE 11.96
Fwd PE 11.23
P/S 0.88
P/FCF 10.66
P/OCF 7.62
P/B 2.31
P/tB 4.2
EV/EBITDA 6.51
EPS(TTM)4.91
EY8.36%
EPS(NY)5.23
Fwd EY8.9%
FCF(TTM)5.51
FCFY9.38%
OCF(TTM)7.7
OCFY13.12%
SpS66.92
BVpS25.44
TBVpS13.99
PEG (NY)1.85
PEG (5Y)0.94
Graham Number53.01
Profitability
Industry RankSector Rank
ROA 2.01%
ROE 5.09%
ROCE 13.93%
ROIC 9.98%
ROICexc 12.81%
ROICexgc 18.28%
OM 10.21%
PM (TTM) 1.93%
GM 19.29%
FCFM 8.24%
ROA(3y)2.92%
ROA(5y)3.51%
ROE(3y)7.31%
ROE(5y)8.54%
ROIC(3y)9.12%
ROIC(5y)8.71%
ROICexc(3y)11.28%
ROICexc(5y)11.07%
ROICexgc(3y)17.12%
ROICexgc(5y)18.23%
ROCE(3y)12.78%
ROCE(5y)12.2%
ROICexgc growth 3Y-0.85%
ROICexgc growth 5Y7.63%
ROICexc growth 3Y6.74%
ROICexc growth 5Y11.6%
OM growth 3Y2.67%
OM growth 5Y2.32%
PM growth 3Y-31.33%
PM growth 5Y-17.02%
GM growth 3Y-0.58%
GM growth 5Y0.52%
F-Score7
Asset Turnover1.04
Health
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 3.31
Debt/EBITDA 1.79
Cap/Depr 65.23%
Cap/Sales 3.28%
Interest Coverage 10.99
Cash Conversion 75.6%
Profit Quality 425.63%
Current Ratio 2.07
Quick Ratio 1.7
Altman-Z 3.27
F-Score7
WACC8.41%
ROIC/WACC1.19
Cap/Depr(3y)102.63%
Cap/Depr(5y)98.94%
Cap/Sales(3y)4.63%
Cap/Sales(5y)4.6%
Profit Quality(3y)234.64%
Profit Quality(5y)182.47%
High Growth Momentum
Growth
EPS 1Y (TTM)13.66%
EPS 3Y2.2%
EPS 5Y12.79%
EPS Q2Q%33.66%
EPS Next Y6.48%
EPS Next 2Y8.24%
EPS Next 3Y5.71%
EPS Next 5Y6.24%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y-3.24%
Revenue growth 5Y7.09%
Sales Q2Q%3.87%
Revenue Next Year1.85%
Revenue Next 2Y2.59%
Revenue Next 3Y2.44%
Revenue Next 5Y3.87%
EBIT growth 1Y12.13%
EBIT growth 3Y-0.65%
EBIT growth 5Y9.57%
EBIT Next Year50.61%
EBIT Next 3Y11.63%
EBIT Next 5Y8.08%
FCF growth 1Y73.13%
FCF growth 3Y11.7%
FCF growth 5Y10.27%
OCF growth 1Y21.89%
OCF growth 3Y1.65%
OCF growth 5Y6.84%

BORGWARNER INC / BWA FAQ

Can you provide the ChartMill fundamental rating for BORGWARNER INC?

ChartMill assigns a fundamental rating of 6 / 10 to BWA.


What is the valuation status for BWA stock?

ChartMill assigns a valuation rating of 6 / 10 to BORGWARNER INC (BWA). This can be considered as Fairly Valued.


Can you provide the profitability details for BORGWARNER INC?

BORGWARNER INC (BWA) has a profitability rating of 7 / 10.


What are the PE and PB ratios of BORGWARNER INC (BWA) stock?

The Price/Earnings (PE) ratio for BORGWARNER INC (BWA) is 11.96 and the Price/Book (PB) ratio is 2.31.


Is the dividend of BORGWARNER INC sustainable?

The dividend rating of BORGWARNER INC (BWA) is 3 / 10 and the dividend payout ratio is 42.96%.