BORGWARNER INC (BWA) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:BWA • US0997241064

52.1 USD
+1.74 (+3.46%)
Last: Feb 6, 2026, 02:20 PM
Fundamental Rating

6

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 only an average score on both its financial health and profitability. BWA is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, BWA could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

6

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.
  • 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.
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 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.92%, BWA is in line with its industry, outperforming 54.76% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 2.24%, BWA is in line with its industry, outperforming 57.14% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 9.21%, BWA belongs to the best of the industry, outperforming 85.71% 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 8.99%.
  • 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 RankSector 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%
BWA Yearly ROA, ROE, ROICBWA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 0.94%, 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 9.59% is amongst the best of the industry. BWA outperforms 83.33% of its industry peers.
  • BWA's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 18.78%, BWA is in line with its industry, outperforming 45.24% of the companies in the same industry.
  • BWA's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
BWA Yearly Profit, Operating, Gross MarginsBWA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • Compared to 1 year ago, BWA has less shares outstanding
  • BWA has more shares outstanding than it did 5 years ago.
  • BWA has a worse debt/assets ratio than last year.
BWA Yearly Shares OutstandingBWA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 3.01 indicates that BWA is not in any danger for bankruptcy at the moment.
  • BWA has a better Altman-Z score (3.01) than 64.29% of its industry peers.
  • BWA has a debt to FCF ratio of 3.15. This is a good value and a sign of high solvency as BWA would need 3.15 years to pay back of all of its debts.
  • BWA's Debt to FCF ratio of 3.15 is fine compared to the rest of the industry. BWA outperforms 76.19% of its industry peers.
  • BWA has a Debt/Equity ratio of 0.65. This is a neutral value indicating BWA is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.65, BWA perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 3.15
Altman-Z 3.01
ROIC/WACC1.07
WACC8.57%
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 2B 4B 6B

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.
  • Looking at the Current ratio, with a value of 2.05, BWA is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
  • A Quick Ratio of 1.69 indicates that BWA should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.69, BWA is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 1.69
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 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

  • BWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.55%, which is quite good.
  • The Earnings Per Share has been growing slightly by 0.90% on average over the past years.
  • Looking at the last year, BWA shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
  • BWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.74% yearly.
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

  • BWA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.15% yearly.
  • Based on estimates for the next years, BWA will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
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.
  • 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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8

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.40, 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.
  • When comparing the Price/Earnings ratio of BWA to the average of the S&P500 Index (27.67), we can say BWA is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 9.96, the valuation of BWA can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, BWA is valued cheaper than 80.95% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of BWA to the average of the S&P500 Index (27.20), we can say BWA is valued rather cheaply.
Industry RankSector Rank
PE 11.4
Fwd PE 9.96
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

  • Based on the Enterprise Value to EBITDA ratio, BWA is valued cheaper than 83.33% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, BWA is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.99
EV/EBITDA 5.98
BWA Per share dataBWA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of BWA may justify a higher PE ratio.
PEG (NY)1.07
PEG (5Y)12.62
EPS Next 2Y10.02%
EPS Next 3Y10%

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

3

5. Dividend

5.1 Amount

  • BWA has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.61, BWA pays a better dividend. On top of this BWA pays more dividend than 80.95% of the companies listed in the same industry.
  • BWA's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector 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
BWA Yearly Dividends per shareBWA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

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%
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 200M 400M 600M 800M
BWA Dividend Payout.BWA Dividend Payout, showing the Payout Ratio.BWA Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

BORGWARNER INC

NYSE:BWA (2/6/2026, 2:20:32 PM)

52.1

+1.74 (+3.46%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)10-30
Earnings (Next)02-11
Inst Owners104.12%
Inst Owner Change-2.77%
Ins Owners1.03%
Ins Owner Change-4.06%
Market Cap11.15B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts73
Price Target49.73 (-4.55%)
Short Float %5.49%
Short Ratio3.92
Dividend
Industry RankSector 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 RankSector Rank
PE 11.4
Fwd PE 9.96
P/S 0.79
P/FCF 8.99
P/OCF 6.53
P/B 1.86
P/tB 3.58
EV/EBITDA 5.98
EPS(TTM)4.57
EY8.77%
EPS(NY)5.23
Fwd EY10.04%
FCF(TTM)5.8
FCFY11.13%
OCF(TTM)7.98
OCFY15.32%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)1.07
PEG (5Y)12.62
Graham Number53.65
Profitability
Industry RankSector 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 RankSector 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 3.01
F-Score8
WACC8.57%
ROIC/WACC1.07
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 11.4 and the Price/Book (PB) ratio is 1.86.


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%.