BORGWARNER INC (BWA)
US0997241064 - Common Stock
BWA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 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.
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 better Return On Assets (5.93%) than 88.89% of its industry peers.
BWA has a Return On Equity of 14.57%. This is amongst the best in the industry. BWA outperforms 90.12% of its industry peers.
The Return On Invested Capital of BWA (8.19%) is worse than 62.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BWA is in line with the industry average of 9.39%.
| 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 comparable to the rest of the industry.
BWA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.92%, BWA is doing worse than 61.73% of the companies in the same industry.
BWA's Operating Margin has declined in the last couple of years.
BWA's Gross Margin of 18.52% is on the low side compared to the rest of the industry. BWA is outperformed by 76.54% of its industry peers.
In the last couple of years the Gross Margin of BWA has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BWA is still creating some value.
Compared to 1 year ago, BWA has less shares outstanding
The number of shares outstanding for BWA has been increased compared to 5 years ago.
The debt/assets ratio for BWA is higher compared to a year ago.
2.2 Solvency
BWA has an Altman-Z score of 2.59. 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.
BWA has a Altman-Z score of 2.59. This is comparable to the rest of the industry: BWA outperforms 59.26% of its industry peers.
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 worse Debt to FCF ratio (5.58) than 69.14% of its industry peers.
BWA has a Debt/Equity ratio of 0.69. This is a neutral value indicating 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 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.11
WACC7.38%
2.3 Liquidity
A Current Ratio of 1.84 indicates that BWA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.84, BWA is doing good in the industry, outperforming 72.84% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that BWA should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.48, BWA belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
| 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%.
BWA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.77% yearly.
The Revenue has decreased by -4.16% in the past year.
BWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.16% yearly.
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 7.34% on average per year.
BWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y-1.19%
EPS Next 2Y4.4%
EPS Next 3Y6.67%
EPS Next 5Y7.34%
Revenue Next Year-3.05%
Revenue Next 2Y0.8%
Revenue Next 3Y2.09%
Revenue Next 5Y4.95%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.02, the valuation of BWA can be described as very reasonable.
Based on the Price/Earnings ratio, BWA is valued cheaper than 81.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. BWA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.17, which indicates a rather cheap valuation of BWA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BWA indicates a somewhat cheap valuation: BWA is cheaper than 72.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, BWA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 7.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BWA is valued a bit cheaper than 64.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BWA is valued a bit cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.4%
EPS Next 3Y6.67%
5. Dividend
5.1 Amount
BWA has a Yearly Dividend Yield of 1.28%.
Compared to an average industry Dividend Yield of 4.30, BWA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.23, BWA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of BWA decreases each year by -3.66%.
BWA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BWA pays out 11.04% of its income as dividend. This is a sustainable payout ratio.
DP11.04%
EPS Next 2Y4.4%
EPS Next 3Y6.67%
BORGWARNER INC
NYSE:BWA (11/21/2024, 8:16:35 PM)
Premarket: 33.75 -0.01 (-0.03%)33.76
+0.45 (+1.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 7.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 14.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.92% | ||
| PM (TTM) | 6.33% | ||
| GM | 18.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-10.04%
EPS 3Y17.11%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y11.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y