BORGWARNER INC (BWA) Stock Fundamental Analysis
NYSE:BWA - New York Stock Exchange, Inc. - US0997241064 - Common Stock - Currency: USD
Overall BWA gets a fundamental rating of 4 out of 10. We evaluated BWA against 83 industry peers in the Automobile Components industry. BWA has only an average score on both its financial health and profitability. BWA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BWA had positive earnings in the past year.
In the past year BWA had a positive cash flow from operations.
BWA had positive earnings in each of the past 5 years.
BWA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.93%, BWA belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
BWA has a better Return On Equity (14.57%) than 91.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.19%, BWA is doing worse than 61.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BWA is in line with the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 14.57% | ||
| ROIC | 8.19% |
ROA(3y)4.37%
ROA(5y)4.79%
ROE(3y)10.51%
ROE(5y)11.03%
ROIC(3y)8.5%
ROIC(5y)8.66%
1.3 Margins
BWA has a Profit Margin (6.33%) which is in line with its industry peers.
BWA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.92%, BWA is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of BWA has declined.
The Gross Margin of BWA (18.52%) is worse than 74.70% of its industry peers.
BWA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.92% | ||
| PM (TTM) | 6.33% | ||
| GM | 18.52% |
OM growth 3Y-0.75%
OM growth 5Y-6.17%
PM growth 3Y-3.63%
PM growth 5Y-13.02%
GM growth 3Y-1.26%
GM growth 5Y-3.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BWA is creating some value.
The number of shares outstanding for BWA has been reduced compared to 1 year ago.
BWA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BWA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.57 indicates that BWA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.57, BWA perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
BWA has a debt to FCF ratio of 5.58. This is a neutral value as BWA would need 5.58 years to pay back of all of its debts.
BWA has a Debt to FCF ratio of 5.58. This is in the lower half of the industry: BWA underperforms 66.27% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that BWA is somewhat dependend on debt financing.
BWA has a Debt to Equity ratio of 0.69. This is amonst the worse of the industry: BWA underperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.07
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.84 indicates that BWA should not have too much problems paying its short term obligations.
BWA's Current ratio of 1.84 is fine compared to the rest of the industry. BWA outperforms 72.29% of its industry peers.
BWA has a Quick Ratio of 1.48. This is a normal value and indicates that BWA is financially healthy and should not expect problems in meeting its short term obligations.
BWA's Quick ratio of 1.48 is amongst the best of the industry. BWA outperforms 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
BWA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.04%.
The Earnings Per Share has been decreasing by -0.77% on average over the past years.
BWA shows a decrease in Revenue. In the last year, the revenue decreased by -4.16%.
The Revenue has been growing slightly by 6.16% on average over the past years.
EPS 1Y (TTM)-10.04%
EPS 3Y17.11%
EPS 5Y-0.77%
EPS Q2Q%11.22%
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y11.78%
Revenue growth 5Y6.16%
Sales Q2Q%-4.78%
3.2 Future
Based on estimates for the next years, BWA will show a small growth in Earnings Per Share. The EPS will grow by 6.32% on average per year.
BWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y-0.67%
EPS Next 2Y3.98%
EPS Next 3Y6.78%
EPS Next 5Y6.32%
Revenue Next Year-3.18%
Revenue Next 2Y0.29%
Revenue Next 3Y2.03%
Revenue Next 5Y3.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
BWA is valuated cheaply with a Price/Earnings ratio of 7.73.
Based on the Price/Earnings ratio, BWA is valued cheaply inside the industry as 83.13% of the companies are valued more expensively.
BWA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.42.
Based on the Price/Forward Earnings ratio of 6.97, the valuation of BWA can be described as very cheap.
Based on the Price/Forward Earnings ratio, BWA is valued a bit cheaper than 77.11% of the companies in the same industry.
BWA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
63.86% of the companies in the same industry are more expensive than BWA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BWA is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.65 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.98%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, BWA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.08, BWA is paying slightly less dividend.
BWA's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of BWA decreases each year by -3.66%.
BWA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-3.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
11.04% of the earnings are spent on dividend by BWA. This is a low number and sustainable payout ratio.
DP11.04%
EPS Next 2Y3.98%
EPS Next 3Y6.78%
BORGWARNER INC
NYSE:BWA (1/28/2025, 8:26:59 PM)
After market: 32.55 0 (0%)32.55
-0.35 (-1.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners100.07%
Inst Owner Change0.63%
Ins Owners0.76%
Ins Owner Change-9.51%
Market Cap7.12B
Analysts75.45
Price Target42.02 (29.09%)
Short Float %4.6%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.56
Dividend Growth(5Y)-3.66%
DP11.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.62%
Min EPS beat(2)16.5%
Max EPS beat(2)16.74%
EPS beat(4)3
Avg EPS beat(4)11.21%
Min EPS beat(4)-5.48%
Max EPS beat(4)17.1%
EPS beat(8)6
Avg EPS beat(8)10.64%
EPS beat(12)10
Avg EPS beat(12)15.45%
EPS beat(16)14
Avg EPS beat(16)17.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)-2.65%
Revenue beat(4)1
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)1.44%
Revenue beat(8)3
Avg Revenue beat(8)0.29%
Revenue beat(12)5
Avg Revenue beat(12)-4.19%
Revenue beat(16)8
Avg Revenue beat(16)-1.66%
PT rev (1m)-0.53%
PT rev (3m)0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.69%
EPS NY rev (1m)0%
EPS NY rev (3m)3.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.59%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.5 | ||
| P/FCF | 8.65 | ||
| P/OCF | 4.62 | ||
| P/B | 1.16 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)4.21
EY12.93%
EPS(NY)4.67
Fwd EY14.35%
FCF(TTM)3.76
FCFY11.56%
OCF(TTM)7.05
OCFY21.65%
SpS64.79
BVpS28.15
TBVpS11.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 14.57% | ||
| ROCE | 11.07% | ||
| ROIC | 8.19% | ||
| ROICexc | 9.91% | ||
| ROICexgc | 15.82% | ||
| OM | 8.92% | ||
| PM (TTM) | 6.33% | ||
| GM | 18.52% | ||
| FCFM | 5.81% |
ROA(3y)4.37%
ROA(5y)4.79%
ROE(3y)10.51%
ROE(5y)11.03%
ROIC(3y)8.5%
ROIC(5y)8.66%
ROICexc(3y)10.83%
ROICexc(5y)11.18%
ROICexgc(3y)19.3%
ROICexgc(5y)19.37%
ROCE(3y)11.5%
ROCE(5y)11.71%
ROICexcg growth 3Y8.21%
ROICexcg growth 5Y-3.99%
ROICexc growth 3Y9.89%
ROICexc growth 5Y-5.76%
OM growth 3Y-0.75%
OM growth 5Y-6.17%
PM growth 3Y-3.63%
PM growth 5Y-13.02%
GM growth 3Y-1.26%
GM growth 5Y-3.1%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.58 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 110.46% | ||
| Cap/Sales | 5.07% | ||
| Interest Coverage | 10.8 | ||
| Cash Conversion | 80.51% | ||
| Profit Quality | 91.75% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 2.57 |
F-Score6
WACC7.68%
ROIC/WACC1.07
Cap/Depr(3y)109.92%
Cap/Depr(5y)104.1%
Cap/Sales(3y)4.98%
Cap/Sales(5y)4.84%
Profit Quality(3y)95.08%
Profit Quality(5y)100.09%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.04%
EPS 3Y17.11%
EPS 5Y-0.77%
EPS Q2Q%11.22%
EPS Next Y-0.67%
EPS Next 2Y3.98%
EPS Next 3Y6.78%
EPS Next 5Y6.32%
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y11.78%
Revenue growth 5Y6.16%
Sales Q2Q%-4.78%
Revenue Next Year-3.18%
Revenue Next 2Y0.29%
Revenue Next 3Y2.03%
Revenue Next 5Y3.81%
EBIT growth 1Y-7.06%
EBIT growth 3Y10.94%
EBIT growth 5Y-0.39%
EBIT Next Year45.09%
EBIT Next 3Y17.01%
EBIT Next 5Y11.05%
FCF growth 1Y32.32%
FCF growth 3Y-12.76%
FCF growth 5Y-3.71%
OCF growth 1Y26.21%
OCF growth 3Y3.48%
OCF growth 5Y3.1%