BORGWARNER INC (BWA) Fundamental Analysis & Valuation

NYSE:BWA • US0997241064

Current stock price

53.06 USD
+0.23 (+0.44%)
At close:
53.06 USD
0 (0%)
After Hours:

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

  • In the past year BWA was profitable.
  • In the past year BWA had a positive cash flow from operations.
  • In the past 5 years BWA has always 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's Return On Assets of 2.01% is fine compared to the rest of the industry. BWA outperforms 60.98% of its industry peers.
  • Looking at the Return On Equity, with a value of 5.09%, BWA is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
  • The Return On Invested Capital of BWA (9.98%) is better than 87.80% 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 9.26%.
  • The 3 year average ROIC (9.12%) for BWA is below the current ROIC(9.98%), indicating increased profibility in the last year.
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

  • BWA has a Profit Margin of 1.93%. This is in the better half of the industry: BWA outperforms 63.41% of its industry peers.
  • In the last couple of years the Profit Margin of BWA has declined.
  • BWA's Operating Margin of 10.21% is amongst the best of the industry. BWA outperforms 85.37% of its industry peers.
  • BWA's Operating Margin has improved in the last couple of years.
  • The Gross Margin of BWA (19.29%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of BWA has remained more or less at the same level.
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BWA is creating some value.
  • BWA has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for BWA has been reduced compared to 5 years ago.
  • 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 3.16 indicates that BWA is not in any danger for bankruptcy at the moment.
  • BWA has a Altman-Z score of 3.16. This is in the better half of the industry: BWA outperforms 73.17% of its industry peers.
  • BWA has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as BWA would need 3.31 years to pay back of all of its debts.
  • BWA has a better Debt to FCF ratio (3.31) than 80.49% of its industry peers.
  • A Debt/Equity ratio of 0.72 indicates that BWA is somewhat dependend on debt financing.
  • BWA has a Debt to Equity ratio of 0.72. This is comparable to the rest of the industry: BWA outperforms 41.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 3.31
Altman-Z 3.16
ROIC/WACC1.2
WACC8.33%
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.
  • BWA's Current ratio of 2.07 is in line compared to the rest of the industry. BWA outperforms 51.22% of its industry peers.
  • 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.
  • BWA's Quick ratio of 1.70 is fine compared to the rest of the industry. BWA outperforms 70.73% 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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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.
  • BWA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.79% yearly.
  • BWA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
  • The Revenue has been growing slightly by 7.09% on average over the past years.
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

  • Based on estimates for the next years, BWA will show a small growth in Earnings Per Share. The EPS will grow by 6.24% on average per year.
  • The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y7.15%
EPS Next 2Y9.74%
EPS Next 3Y9.85%
EPS Next 5Y6.24%
Revenue Next Year1.1%
Revenue Next 2Y2.31%
Revenue Next 3Y2.37%
Revenue Next 5Y4.36%

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 decreasing.
  • 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 10.81.
  • BWA's Price/Earnings ratio is a bit cheaper when compared to the industry. BWA is cheaper than 78.05% of the companies in the same industry.
  • BWA is valuated cheaply when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 10.09, the valuation of BWA can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, BWA is valued a bit cheaper than 75.61% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.13. BWA is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.81
Fwd PE 10.09
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 cheaply inside the industry as 80.49% of the companies are valued more expensively.
  • 82.93% of the companies in the same industry are more expensive than BWA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.32
EV/EBITDA 5.77
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)1.51
PEG (5Y)0.85
EPS Next 2Y9.74%
EPS Next 3Y9.85%

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

3

5. BWA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.25%, BWA has a reasonable but not impressive dividend return.
  • BWA's Dividend Yield is a higher than the industry average which is at 0.70.
  • Compared to the average S&P500 Dividend Yield of 1.89, BWA is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.25%

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.
  • BWA has decreased its dividend 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

  • BWA pays out 42.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.96%
EPS Next 2Y9.74%
EPS Next 3Y9.85%
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 (4/6/2026, 8:24:04 PM)

After market: 53.06 0 (0%)

53.06

+0.23 (+0.44%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners107.46%
Inst Owner Change0%
Ins Owners1.19%
Ins Owner Change5.29%
Market Cap10.99B
Revenue(TTM)14.32B
Net Income(TTM)277.00M
Analysts73.33
Price Target66.34 (25.03%)
Short Float %3%
Short Ratio1.9
Dividend
Industry RankSector Rank
Dividend Yield 1.25%
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)0.24%
PT rev (3m)33.22%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)0%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-3.58%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)-1.19%
Valuation
Industry RankSector Rank
PE 10.81
Fwd PE 10.09
P/S 0.77
P/FCF 9.32
P/OCF 6.67
P/B 2.02
P/tB 3.67
EV/EBITDA 5.77
EPS(TTM)4.91
EY9.25%
EPS(NY)5.26
Fwd EY9.92%
FCF(TTM)5.69
FCFY10.73%
OCF(TTM)7.96
OCFY15%
SpS69.14
BVpS26.28
TBVpS14.46
PEG (NY)1.51
PEG (5Y)0.85
Graham Number53.89
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 3.16
F-Score7
WACC8.33%
ROIC/WACC1.2
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 Y7.15%
EPS Next 2Y9.74%
EPS Next 3Y9.85%
EPS Next 5Y6.24%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y-3.24%
Revenue growth 5Y7.09%
Sales Q2Q%3.87%
Revenue Next Year1.1%
Revenue Next 2Y2.31%
Revenue Next 3Y2.37%
Revenue Next 5Y4.36%
EBIT growth 1Y12.13%
EBIT growth 3Y-0.65%
EBIT growth 5Y9.57%
EBIT Next Year48.54%
EBIT Next 3Y17.5%
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 10.81 and the Price/Book (PB) ratio is 2.02.


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%.