BORGWARNER INC (BWA) Stock Fundamental Analysis
USA - NYSE:BWA - US0997241064 - Common Stock
44.1 USD
+0.27 (+0.62%)
44.1 USD
0 (0%)
Taking everything into account, BWA scores 5 out of 10 in our fundamental rating. BWA was compared to 82 industry peers in the Automobile Components industry. BWA has an average financial health and profitability rating. BWA has a correct valuation and a medium growth rate.
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.
In the past 5 years BWA always reported a positive cash flow from operatings.
1.2 Ratios
BWA has a worse Return On Assets (0.92%) than 73.17% of its industry peers.
With a Return On Equity value of 2.24%, BWA is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
BWA has a better Return On Invested Capital (9.21%) than 90.24% of its industry peers.
BWA had an Average Return On Invested Capital over the past 3 years of 8.99%. This is in line with the industry average of 8.52%.
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
The Profit Margin of BWA (0.94%) is worse than 70.73% of its industry peers.
BWA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.59%, BWA is in line with its industry, outperforming 43.90% of the companies in the same industry.
In the last couple of years the Operating Margin of BWA has declined.
Looking at the Gross Margin, with a value of 18.78%, BWA is doing worse than 74.39% 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.
BWA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BWA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.92 indicates that BWA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.92, BWA is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.15, BWA belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
BWA has a Debt/Equity ratio of 0.65. This is a neutral value indicating BWA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, BWA is doing worse than 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.17
WACC7.89%
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.
The Current ratio of BWA (2.05) is better than 75.61% of its industry peers.
A Quick Ratio of 1.69 indicates that BWA should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.69, BWA belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.69 |
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.
Measured over the past 5 years, BWA shows a small growth in Earnings Per Share. The EPS has been growing by 0.90% on average per year.
Looking at the last year, BWA shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
The Revenue has been growing slightly by 6.74% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.26% on average over the next years.
Based on estimates for the next years, BWA will show a small growth in Revenue. The Revenue will grow by 4.17% on average per year.
EPS Next Y9.55%
EPS Next 2Y9.41%
EPS Next 3Y8.3%
EPS Next 5Y6.26%
Revenue Next Year1.46%
Revenue Next 2Y2.12%
Revenue Next 3Y2.41%
Revenue Next 5Y4.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 9.65.
BWA's Price/Earnings ratio is a bit cheaper when compared to the industry. BWA is cheaper than 76.83% of the companies in the same industry.
BWA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 8.53, the valuation of BWA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BWA indicates a somewhat cheap valuation: BWA is cheaper than 71.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.53. BWA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BWA is valued a bit cheaper than the industry average as 70.73% 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 91.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.7 | ||
| EV/EBITDA | 5.36 |
4.3 Compensation for Growth
BWA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.01
PEG (5Y)10.68
EPS Next 2Y9.41%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, BWA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.32, BWA has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, BWA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of BWA decreases each year by -8.36%.
BWA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BWA pays out 80.60% of its income as dividend. This is not a sustainable payout ratio.
DP80.6%
EPS Next 2Y9.41%
EPS Next 3Y8.3%
44.1
+0.27 (+0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners103.57%
Inst Owner Change-0.21%
Ins Owners1.03%
Ins Owner Change-5.08%
Market Cap9.54B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts74.29
Price Target46.95 (6.46%)
Short Float %3.48%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)5.86%
PT rev (3m)19.19%
EPS NQ rev (1m)2.49%
EPS NQ rev (3m)9.29%
EPS NY rev (1m)1.33%
EPS NY rev (3m)7.96%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 8.53 | ||
| P/S | 0.67 | ||
| P/FCF | 7.7 | ||
| P/OCF | 5.59 | ||
| P/B | 1.59 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)4.57
EY10.36%
EPS(NY)5.17
Fwd EY11.73%
FCF(TTM)5.73
FCFY12.99%
OCF(TTM)7.89
OCFY17.9%
SpS65.54
BVpS27.68
TBVpS14.4
PEG (NY)1.01
PEG (5Y)10.68
Graham Number53.35
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 | 2.92 |
F-Score8
WACC7.89%
ROIC/WACC1.17
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 Y9.55%
EPS Next 2Y9.41%
EPS Next 3Y8.3%
EPS Next 5Y6.26%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
Revenue Next Year1.46%
Revenue Next 2Y2.12%
Revenue Next 3Y2.41%
Revenue Next 5Y4.17%
EBIT growth 1Y7.59%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year47.4%
EBIT Next 3Y16.81%
EBIT Next 5Y10.65%
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 9.65 and the Price/Book (PB) ratio is 1.59.
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%.