BORGWARNER INC (BWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWA - US0997241064 - Common Stock
45.13 USD
-0.3 (-0.66%)
We assign a fundamental rating of 5 out of 10 to BWA. BWA was compared to 43 industry peers in the Automobile Components industry. Both the profitability and the financial health of BWA get a neutral evaluation. Nothing too spectacular is happening here. BWA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make BWA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year BWA was profitable.
In the past year BWA had a positive cash flow from operations.
BWA had positive earnings in each of the past 5 years.
Each year in the past 5 years BWA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.92%, BWA is in line with its industry, outperforming 53.49% of the companies in the same industry.
The Return On Equity of BWA (2.24%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.21%, BWA belongs to the top of the industry, outperforming 83.72% 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 9.10%.
The 3 year average ROIC (8.99%) for BWA is below the current ROIC(9.21%), indicating increased profibility in the last year.
| 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 of 0.94%. This is comparable to the rest of the industry: BWA outperforms 58.14% of its industry peers.
In the last couple of years the Profit Margin of BWA has declined.
BWA has a Operating Margin of 9.59%. This is amongst the best in the industry. BWA outperforms 83.72% of its industry peers.
BWA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 18.78%, BWA perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BWA is still creating some value.
BWA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BWA has more shares outstanding
Compared to 1 year ago, BWA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that BWA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.93, BWA is doing good in the industry, outperforming 65.12% 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.
BWA's Debt to FCF ratio of 3.15 is fine compared to the rest of the industry. BWA outperforms 79.07% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that BWA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, BWA perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.11
WACC8.26%
2.3 Liquidity
BWA has a Current Ratio of 2.05. This indicates that BWA is financially healthy and has no problem in meeting its short term obligations.
BWA has a Current ratio (2.05) which is comparable to the rest of the industry.
A Quick Ratio of 1.69 indicates that BWA should not have too much problems paying its short term obligations.
The Quick ratio of BWA (1.69) is better than 74.42% 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.
Measured over the past years, BWA shows a small growth in Revenue. The Revenue has been growing by 6.74% on average per year.
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 Y10.24%
EPS Next 2Y9.39%
EPS Next 3Y9.37%
EPS Next 5Y6.15%
Revenue Next Year0.81%
Revenue Next 2Y1.62%
Revenue Next 3Y2.31%
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
BWA is valuated reasonably with a Price/Earnings ratio of 9.88.
Based on the Price/Earnings ratio, BWA is valued cheaper than 88.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.61, BWA is valued rather cheaply.
The Price/Forward Earnings ratio is 8.73, which indicates a very decent valuation of BWA.
Based on the Price/Forward Earnings ratio, BWA is valued cheaper than 88.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, BWA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BWA is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
BWA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWA is cheaper than 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 5.47 |
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.
BWA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)10.93
EPS Next 2Y9.39%
EPS Next 3Y9.37%
5. Dividend
5.1 Amount
BWA has a Yearly Dividend Yield of 1.51%. 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 0.64.
Compared to an average S&P500 Dividend Yield of 1.87, BWA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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
80.60% of the earnings are spent on dividend by BWA. This is not a sustainable payout ratio.
DP80.6%
EPS Next 2Y9.39%
EPS Next 3Y9.37%
NYSE:BWA (12/23/2025, 10:19:09 AM)
45.13
-0.3 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners103.91%
Inst Owner Change-0.29%
Ins Owners1.03%
Ins Owner Change-4.06%
Market Cap9.65B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts73.33
Price Target49.27 (9.17%)
Short Float %5.64%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend0.44
Dividend Growth(5Y)-8.36%
DP80.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)4.92%
PT rev (3m)11.07%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0.62%
EPS NY rev (3m)3.26%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.68 | ||
| P/FCF | 7.79 | ||
| P/OCF | 5.65 | ||
| P/B | 1.61 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 5.47 |
EPS(TTM)4.57
EY10.13%
EPS(NY)5.17
Fwd EY11.45%
FCF(TTM)5.8
FCFY12.84%
OCF(TTM)7.98
OCFY17.69%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)0.96
PEG (5Y)10.93
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 | 2.93 |
F-Score8
WACC8.26%
ROIC/WACC1.11
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 Y10.24%
EPS Next 2Y9.39%
EPS Next 3Y9.37%
EPS Next 5Y6.15%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
Revenue Next Year0.81%
Revenue Next 2Y1.62%
Revenue Next 3Y2.31%
Revenue Next 5Y3.1%
EBIT growth 1Y7.59%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year51.39%
EBIT Next 3Y17.31%
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 5 / 10 to BWA.
What is the valuation status of BORGWARNER INC (BWA) stock?
ChartMill assigns a valuation rating of 7 / 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 4 / 10.
Can you provide the PE and PB ratios for BWA stock?
The Price/Earnings (PE) ratio for BORGWARNER INC (BWA) is 9.88 and the Price/Book (PB) ratio is 1.61.
Can you provide the dividend sustainability for BWA stock?
The dividend rating of BORGWARNER INC (BWA) is 3 / 10 and the dividend payout ratio is 80.6%.