BORGWARNER INC (BWA) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BWA • US0997241064
48.57 USD
+0.42 (+0.87%)
At close: Feb 3, 2026
48.57 USD
0 (0%)
After Hours: 2/3/2026, 8:04:00 PM
We assign a fundamental rating of 6 out of 10 to BWA. BWA was compared to 42 industry peers in the Automobile Components industry. BWA has an average financial health and profitability rating. BWA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes BWA very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year BWA was profitable.
- BWA had a positive operating cash flow in the past year.
- BWA had positive earnings in each of the past 5 years.
- In the past 5 years BWA always reported a positive cash flow from operatings.
1.2 Ratios
- BWA has a Return On Assets (0.92%) which is comparable to the rest of the industry.
- BWA has a Return On Equity of 2.24%. This is comparable to the rest of the industry: BWA outperforms 54.76% of its industry peers.
- BWA's Return On Invested Capital of 9.21% is amongst the best of the industry. BWA outperforms 83.33% of its industry peers.
- BWA had an Average Return On Invested Capital over the past 3 years of 8.99%. This is in line with the industry average of 9.05%.
- The last Return On Invested Capital (9.21%) for BWA is above the 3 year average (8.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 2.24% | ||
| ROIC | 9.21% |
ROA(3y)4.1%
ROA(5y)3.73%
ROE(3y)9.97%
ROE(5y)9.08%
ROIC(3y)8.99%
ROIC(5y)8.17%
1.3 Margins
- BWA has a Profit Margin (0.94%) which is comparable to the rest of the industry.
- BWA's Profit Margin has declined in the last couple of years.
- BWA has a better Operating Margin (9.59%) than 83.33% of its industry peers.
- BWA's Operating Margin has declined in the last couple of years.
- BWA's Gross Margin of 18.78% is in line compared to the rest of the industry. BWA outperforms 45.24% of its industry peers.
- BWA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.59% | ||
| PM (TTM) | 0.94% | ||
| GM | 18.78% |
OM growth 3Y-0.75%
OM growth 5Y-5.01%
PM growth 3Y-12.8%
PM growth 5Y-20.03%
GM growth 3Y-0.77%
GM growth 5Y-1.87%
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.
- BWA has less shares outstanding than it did 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
- BWA has an Altman-Z score of 2.98. This is not the best score and indicates that BWA is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.98, BWA is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- The Debt to FCF ratio of BWA is 3.15, which is a good value as it means it would take BWA, 3.15 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BWA (3.15) is better than 76.19% of its industry peers.
- A Debt/Equity ratio of 0.65 indicates that BWA is somewhat dependend on debt financing.
- BWA has a Debt to Equity ratio of 0.65. This is comparable to the rest of the industry: BWA outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.08
WACC8.52%
2.3 Liquidity
- A Current Ratio of 2.05 indicates that BWA has no problem at all paying its short term obligations.
- The Current ratio of BWA (2.05) is better than 61.90% of its industry peers.
- BWA has a Quick Ratio of 1.69. This is a normal value and indicates that BWA is financially healthy and should not expect problems in meeting its short term obligations.
- BWA has a better Quick ratio (1.69) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.55% over the past year.
- BWA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.90% yearly.
- Looking at the last year, BWA shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
- The Revenue has been growing slightly by 6.74% on average over the past years.
EPS 1Y (TTM)8.55%
EPS 3Y1.35%
EPS 5Y0.9%
EPS Q2Q%13.76%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
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 6.15% on average per year.
- BWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
EPS Next Y10.7%
EPS Next 2Y10.02%
EPS Next 3Y10%
EPS Next 5Y6.15%
Revenue Next Year0.98%
Revenue Next 2Y2.05%
Revenue Next 3Y2.22%
Revenue Next 5Y3.1%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.63, the valuation of BWA can be described as very reasonable.
- BWA's Price/Earnings ratio is rather cheap when compared to the industry. BWA is cheaper than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.18, BWA is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.29, the valuation of BWA can be described as very reasonable.
- BWA's Price/Forward Earnings ratio is rather cheap when compared to the industry. BWA is cheaper than 83.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, BWA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
- BWA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BWA is cheaper than 83.33% of the companies in the same industry.
- BWA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWA is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.38 | ||
| EV/EBITDA | 5.79 |
4.3 Compensation for Growth
- BWA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of BWA may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)11.76
EPS Next 2Y10.02%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- BWA has a Yearly Dividend Yield of 1.39%.
- BWA's Dividend Yield is a higher than the industry average which is at 0.61.
- Compared to the average S&P500 Dividend Yield of 1.83, BWA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
- The dividend of BWA decreases each year by -8.36%.
- BWA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- BWA pays out 80.60% of its income as dividend. This is not a sustainable payout ratio.
DP80.6%
EPS Next 2Y10.02%
EPS Next 3Y10%
48.57
+0.42 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners104.12%
Inst Owner Change-2.77%
Ins Owners1.03%
Ins Owner Change-4.06%
Market Cap10.39B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts73
Price Target49.73 (2.39%)
Short Float %5.49%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.44
Dividend Growth(5Y)-8.36%
DP80.6%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.19%
Min EPS beat(2)5.8%
Max EPS beat(2)10.59%
EPS beat(4)4
Avg EPS beat(4)8.4%
Min EPS beat(4)4.66%
Max EPS beat(4)12.56%
EPS beat(8)7
Avg EPS beat(8)9.81%
EPS beat(12)10
Avg EPS beat(12)9.9%
EPS beat(16)14
Avg EPS beat(16)13.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-1.19%
Revenue beat(12)4
Avg Revenue beat(12)0.18%
Revenue beat(16)6
Avg Revenue beat(16)-3.15%
PT rev (1m)-0.15%
PT rev (3m)5.9%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)3%
EPS NY rev (1m)0.29%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.73 | ||
| P/FCF | 8.38 | ||
| P/OCF | 6.08 | ||
| P/B | 1.73 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)4.57
EY9.41%
EPS(NY)5.23
Fwd EY10.77%
FCF(TTM)5.8
FCFY11.93%
OCF(TTM)7.98
OCFY16.44%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)0.99
PEG (5Y)11.76
Graham Number53.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 2.24% | ||
| ROCE | 12.26% | ||
| ROIC | 9.21% | ||
| ROICexc | 11.45% | ||
| ROICexgc | 16.88% | ||
| OM | 9.59% | ||
| PM (TTM) | 0.94% | ||
| GM | 18.78% | ||
| FCFM | 8.74% |
ROA(3y)4.1%
ROA(5y)3.73%
ROE(3y)9.97%
ROE(5y)9.08%
ROIC(3y)8.99%
ROIC(5y)8.17%
ROICexc(3y)11.03%
ROICexc(5y)10.47%
ROICexgc(3y)18.11%
ROICexgc(5y)17.92%
ROCE(3y)12.03%
ROCE(5y)10.93%
ROICexgc growth 3Y-6.79%
ROICexgc growth 5Y-7.32%
ROICexc growth 3Y0.73%
ROICexc growth 5Y-5.84%
OM growth 3Y-0.75%
OM growth 5Y-5.01%
PM growth 3Y-12.8%
PM growth 5Y-20.03%
GM growth 3Y-0.77%
GM growth 5Y-1.87%
F-Score8
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 64.02% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 9.51 | ||
| Cash Conversion | 81.68% | ||
| Profit Quality | 925.37% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 2.98 |
F-Score8
WACC8.52%
ROIC/WACC1.08
Cap/Depr(3y)114.31%
Cap/Depr(5y)102.13%
Cap/Sales(3y)5.07%
Cap/Sales(5y)4.85%
Profit Quality(3y)122.63%
Profit Quality(5y)126.26%
High Growth Momentum
Growth
EPS 1Y (TTM)8.55%
EPS 3Y1.35%
EPS 5Y0.9%
EPS Q2Q%13.76%
EPS Next Y10.7%
EPS Next 2Y10.02%
EPS Next 3Y10%
EPS Next 5Y6.15%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
Revenue Next Year0.98%
Revenue Next 2Y2.05%
Revenue Next 3Y2.22%
Revenue Next 5Y3.1%
EBIT growth 1Y7.59%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year54.95%
EBIT Next 3Y18.12%
EBIT Next 5Y8.49%
FCF growth 1Y199.52%
FCF growth 3Y2.2%
FCF growth 5Y5.26%
OCF growth 1Y28.04%
OCF growth 3Y1.16%
OCF growth 5Y6.05%
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 8 / 10 to BORGWARNER INC (BWA). This can be considered as Undervalued.
Can you provide the profitability details for BORGWARNER INC?
BORGWARNER INC (BWA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of BORGWARNER INC (BWA) stock?
The Price/Earnings (PE) ratio for BORGWARNER INC (BWA) is 10.63 and the Price/Book (PB) ratio is 1.73.
Is the dividend of BORGWARNER INC sustainable?
The dividend rating of BORGWARNER INC (BWA) is 3 / 10 and the dividend payout ratio is 80.6%.