BORGWARNER INC (BWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWA - US0997241064 - Common Stock
48.15 USD
-0.12 (-0.25%)
48.15 USD
0 (0%)
BWA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. BWA has an average financial health and profitability rating. BWA may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, BWA could be worth investigating further 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.
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.
1.2 Ratios
With a Return On Assets value of 0.92%, BWA perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
BWA has a Return On Equity (2.24%) which 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 83.33% 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 9.10%.
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
With a Profit Margin value of 0.94%, BWA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of BWA has declined.
Looking at the Operating Margin, with a value of 9.59%, BWA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of BWA has declined.
BWA has a Gross Margin of 18.78%. This is comparable to the rest of the industry: BWA outperforms 45.24% of its industry peers.
In the last couple of years the Gross Margin of BWA has declined.
| 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
BWA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BWA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BWA has more shares outstanding
The debt/assets ratio for BWA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.98 indicates that BWA is not a great score, but indicates only limited risk for bankruptcy at the moment.
BWA has a Altman-Z score of 2.98. This is in the better half of the industry: BWA outperforms 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 has a Debt to FCF ratio of 3.15. This is in the better half of the industry: BWA outperforms 78.57% 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 (0.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.12
WACC8.2%
2.3 Liquidity
A Current Ratio of 2.05 indicates that BWA has no problem at all paying 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.
With a decent Quick ratio value of 1.69, BWA is doing good in the industry, outperforming 76.19% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 0.90% on average over the past years.
The Revenue has been growing slightly by 0.10% in the past 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 Y10.38%
EPS Next 2Y9.65%
EPS Next 3Y9.44%
EPS Next 5Y6.15%
Revenue Next Year0.77%
Revenue Next 2Y1.65%
Revenue Next 3Y2.28%
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.
4. Valuation
4.1 Price/Earnings Ratio
BWA is valuated reasonably with a Price/Earnings ratio of 10.54.
BWA's Price/Earnings ratio is rather cheap when compared to the industry. BWA is cheaper than 88.10% of the companies in the same industry.
BWA is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.27 indicates a reasonable valuation of BWA.
Based on the Price/Forward Earnings ratio, BWA is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.04. BWA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BWA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BWA indicates a rather cheap valuation: BWA is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.31 | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
The 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)1.01
PEG (5Y)11.66
EPS Next 2Y9.65%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, BWA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.62, BWA pays a bit more dividend than its industry peers.
BWA's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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 2Y9.65%
EPS Next 3Y9.44%
48.15
-0.12 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners104.12%
Inst Owner Change-0.02%
Ins Owners1.03%
Ins Owner Change-4.06%
Market Cap10.30B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts73
Price Target49.8 (3.43%)
Short Float %5.87%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)1.08%
PT rev (3m)9.37%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)0.13%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.27 | ||
| P/S | 0.73 | ||
| P/FCF | 8.31 | ||
| P/OCF | 6.03 | ||
| P/B | 1.72 | ||
| P/tB | 3.3 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)4.57
EY9.49%
EPS(NY)5.19
Fwd EY10.79%
FCF(TTM)5.8
FCFY12.04%
OCF(TTM)7.98
OCFY16.58%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)1.01
PEG (5Y)11.66
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
WACC8.2%
ROIC/WACC1.12
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 Y10.38%
EPS Next 2Y9.65%
EPS Next 3Y9.44%
EPS Next 5Y6.15%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
Revenue Next Year0.77%
Revenue Next 2Y1.65%
Revenue Next 3Y2.28%
Revenue Next 5Y3.1%
EBIT growth 1Y7.59%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year54.03%
EBIT Next 3Y17.91%
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 10.54 and the Price/Book (PB) ratio is 1.72.
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%.