BORGWARNER INC (BWA) Fundamental Analysis & Valuation

NYSE:BWA • US0997241064

Current stock price

54.31 USD
-1.08 (-1.95%)
Last:

This BWA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. BWA Profitability Analysis

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.
  • Each year in the past 5 years BWA had a positive operating cash flow.
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

  • BWA has a Return On Assets of 2.01%. This is comparable to the rest of the industry: BWA outperforms 59.52% of its industry peers.
  • With a decent Return On Equity value of 5.09%, BWA is doing good in the industry, outperforming 64.29% of the companies in the same industry.
  • BWA has a Return On Invested Capital of 9.98%. This is amongst the best in the industry. BWA outperforms 85.71% of its industry peers.
  • BWA had an Average Return On Invested Capital over the past 3 years of 9.12%. This is in line with the industry average of 9.70%.
  • 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

  • Looking at the Profit Margin, with a value of 1.93%, BWA is in line with its industry, outperforming 59.52% of the companies in the same industry.
  • BWA's Profit Margin has declined in the last couple of years.
  • BWA's Operating Margin of 10.21% is amongst the best of the industry. BWA outperforms 85.71% of its industry peers.
  • BWA's Operating Margin has improved in the last couple of years.
  • BWA has a Gross Margin (19.29%) which is comparable to the rest of the industry.
  • 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. BWA Health Analysis

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.
  • Compared to 5 years ago, BWA has less shares outstanding
  • 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 3.19 indicates that BWA is not in any danger for bankruptcy at the moment.
  • BWA has a Altman-Z score of 3.19. This is in the better half of the industry: BWA outperforms 73.81% 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.
  • BWA's Debt to FCF ratio of 3.31 is amongst the best of the industry. BWA outperforms 80.95% of its industry peers.
  • A Debt/Equity ratio of 0.72 indicates that BWA is somewhat dependend on debt financing.
  • The Debt to Equity ratio of BWA (0.72) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 3.31
Altman-Z 3.19
ROIC/WACC1.03
WACC9.66%
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.
  • Looking at the Current ratio, with a value of 2.07, BWA is in line with its industry, outperforming 52.38% of the companies in the same industry.
  • BWA has a Quick Ratio of 1.70. This is a normal value and indicates that BWA is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of BWA (1.70) is better than 73.81% 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. BWA Growth Analysis

3.1 Past

  • BWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.66%, which is quite good.
  • The Earnings Per Share has been growing by 12.79% on average over the past years. This is quite good.
  • BWA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
  • 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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.20% yearly.
  • BWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
EPS Next Y7.34%
EPS Next 2Y9.64%
EPS Next 3Y9.83%
EPS Next 5Y10.2%
Revenue Next Year1.01%
Revenue Next 2Y2.27%
Revenue Next 3Y2.34%
Revenue Next 5Y4.76%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 20B
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 8

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7

4. BWA Valuation Analysis

4.1 Price/Earnings Ratio

  • BWA is valuated reasonably with a Price/Earnings ratio of 11.06.
  • BWA's Price/Earnings ratio is rather cheap when compared to the industry. BWA is cheaper than 80.95% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of BWA to the average of the S&P500 Index (27.15), we can say BWA is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.31 indicates a reasonable valuation of BWA.
  • 71.43% of the companies in the same industry are more expensive than BWA, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of BWA to the average of the S&P500 Index (22.12), we can say BWA is valued rather cheaply.
Industry RankSector Rank
PE 11.06
Fwd PE 10.31
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 somewhat cheap valuation: BWA is cheaper than 78.57% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, BWA is valued cheaper than 85.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.49
EV/EBITDA 5.96
BWA Per share dataBWA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • BWA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • BWA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)0.86
EPS Next 2Y9.64%
EPS Next 3Y9.83%

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

3

5. BWA Dividend Analysis

5.1 Amount

  • BWA has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
  • BWA's Dividend Yield is a higher than the industry average which is at 0.63.
  • Compared to the average S&P500 Dividend Yield of 1.82, BWA is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.21%

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.
  • The dividend of BWA decreased recently.
Dividend Growth(5Y)-3.16%
Div Incr Years1
Div Non Decr Years1
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

  • 42.96% of the earnings are spent on dividend by BWA. This is a bit on the high side, but may be sustainable.
DP42.96%
EPS Next 2Y9.64%
EPS Next 3Y9.83%
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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BWA Fundamentals: All Metrics, Ratios and Statistics

BORGWARNER INC

NYSE:BWA (4/28/2026, 2:30:58 PM)

54.31

-1.08 (-1.95%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-11
Earnings (Next)05-06
Inst Owners108.16%
Inst Owner Change-0.04%
Ins Owners0.72%
Ins Owner Change5.29%
Market Cap11.19B
Revenue(TTM)14.32B
Net Income(TTM)277.00M
Analysts73.33
Price Target65.39 (20.4%)
Short Float %3.14%
Short Ratio2.41
Dividend
Industry RankSector Rank
Dividend Yield 1.21%
Yearly Dividend0.56
Dividend Growth(5Y)-3.16%
DP42.96%
Div Incr Years1
Div Non Decr Years1
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)-1.19%
PT rev (3m)31.51%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-3.28%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)-2.06%
Valuation
Industry RankSector Rank
PE 11.06
Fwd PE 10.31
P/S 0.78
P/FCF 9.49
P/OCF 6.79
P/B 2.06
P/tB 3.74
EV/EBITDA 5.96
EPS(TTM)4.91
EY9.04%
EPS(NY)5.27
Fwd EY9.7%
FCF(TTM)5.72
FCFY10.54%
OCF(TTM)8
OCFY14.73%
SpS69.47
BVpS26.41
TBVpS14.52
PEG (NY)1.51
PEG (5Y)0.86
Graham Number54.015 (-0.54%)
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 3.19
F-Score7
WACC9.66%
ROIC/WACC1.03
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 Y7.34%
EPS Next 2Y9.64%
EPS Next 3Y9.83%
EPS Next 5Y10.2%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y-3.24%
Revenue growth 5Y7.09%
Sales Q2Q%3.87%
Revenue Next Year1.01%
Revenue Next 2Y2.27%
Revenue Next 3Y2.34%
Revenue Next 5Y4.76%
EBIT growth 1Y12.13%
EBIT growth 3Y-0.65%
EBIT growth 5Y9.57%
EBIT Next Year51.87%
EBIT Next 3Y18.28%
EBIT Next 5Y9.47%
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 Fundamental Analysis 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 7 / 10 to BORGWARNER INC (BWA). This can be considered as Undervalued.


What is the profitability of BWA stock?

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 11.06 and the Price/Book (PB) ratio is 2.06.


How sustainable is the dividend of BORGWARNER INC (BWA) stock?

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