BORGWARNER INC (BWA) Fundamental Analysis & Valuation

NYSE:BWA • US0997241064

Current stock price

54.7325 USD
-0.66 (-1.19%)
Last:

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

  • BWA had positive earnings in the past year.
  • 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.
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

  • With a Return On Assets value of 2.01%, BWA perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
  • BWA has a better Return On Equity (5.09%) than 64.29% of its industry peers.
  • The Return On Invested Capital of BWA (9.98%) is better than 85.71% of its industry peers.
  • BWA had an Average Return On Invested Capital over the past 3 years of 9.12%. This is in line with the industry average of 9.70%.
  • 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

  • Looking at the Profit Margin, with a value of 1.93%, BWA is in line with its industry, outperforming 59.52% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BWA has declined.
  • With an excellent Operating Margin value of 10.21%, BWA belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • BWA's Operating Margin has improved in the last couple of years.
  • BWA has a Gross Margin (19.29%) which 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

  • 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 reduced compared to 5 years ago.
  • BWA has a better debt/assets ratio than last year.
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

  • BWA has an Altman-Z score of 3.19. This indicates that BWA is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.19, BWA is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
  • The Debt to FCF ratio of BWA is 3.31, which is a good value as it means it would take BWA, 3.31 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of BWA (3.31) is better than 80.95% of its industry peers.
  • BWA has a Debt/Equity ratio of 0.72. This is a neutral value indicating BWA is somewhat dependend on debt financing.
  • The Debt to Equity ratio of BWA (0.72) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 3.31
Altman-Z 3.19
ROIC/WACC1.03
WACC9.66%
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 52.38% of its industry peers.
  • A Quick Ratio of 1.70 indicates that BWA should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.70, BWA is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
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.
  • The Revenue has been growing slightly by 1.63% in the past year.
  • BWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.09% yearly.
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

  • The Earnings Per Share is expected to grow by 10.20% on average over the next years. This is quite good.
  • BWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
EPS Next Y7.34%
EPS Next 2Y9.64%
EPS Next 3Y9.83%
EPS Next 5Y10.2%
Revenue Next Year1.01%
Revenue Next 2Y2.27%
Revenue Next 3Y2.34%
Revenue Next 5Y4.76%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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

  • The Price/Earnings ratio is 11.15, which indicates a very decent valuation of BWA.
  • Based on the Price/Earnings ratio, BWA is valued cheaper than 80.95% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.15, BWA is valued rather cheaply.
  • The Price/Forward Earnings ratio is 10.39, which indicates a very decent valuation of BWA.
  • BWA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BWA is cheaper than 71.43% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of BWA to the average of the S&P500 Index (22.12), we can say BWA is valued rather cheaply.
Industry RankSector Rank
PE 11.15
Fwd PE 10.39
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

  • 78.57% of the companies in the same industry are more expensive than BWA, based on the Enterprise Value to EBITDA ratio.
  • 85.71% 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 9.57
EV/EBITDA 5.96
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)1.52
PEG (5Y)0.87
EPS Next 2Y9.64%
EPS Next 3Y9.83%

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3

5. BWA Dividend Analysis

5.1 Amount

  • BWA has a Yearly Dividend Yield of 1.21%.
  • Compared to an average industry Dividend Yield of 0.63, BWA pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.82, BWA is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.21%

5.2 History

  • The dividend of BWA decreases each year by -3.16%.
  • BWA has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of BWA decreased 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

  • 42.96% of the earnings are spent on dividend by BWA. This is a bit on the high side, but may be sustainable.
DP42.96%
EPS Next 2Y9.64%
EPS Next 3Y9.83%
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 (4/28/2026, 9:55:43 AM)

54.7325

-0.66 (-1.19%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-11
Earnings (Next)05-06
Inst Owners108.16%
Inst Owner Change-0.04%
Ins Owners0.72%
Ins Owner Change5.29%
Market Cap11.28B
Revenue(TTM)14.32B
Net Income(TTM)277.00M
Analysts73.33
Price Target65.39 (19.47%)
Short Float %3.14%
Short Ratio2.41
Dividend
Industry RankSector Rank
Dividend Yield 1.21%
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)-1.19%
PT rev (3m)31.51%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-3.28%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)-2.06%
Valuation
Industry RankSector Rank
PE 11.15
Fwd PE 10.39
P/S 0.79
P/FCF 9.57
P/OCF 6.84
P/B 2.07
P/tB 3.77
EV/EBITDA 5.96
EPS(TTM)4.91
EY8.97%
EPS(NY)5.27
Fwd EY9.63%
FCF(TTM)5.72
FCFY10.45%
OCF(TTM)8
OCFY14.61%
SpS69.47
BVpS26.41
TBVpS14.52
PEG (NY)1.52
PEG (5Y)0.87
Graham Number54.015 (-1.31%)
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 3.19
F-Score7
WACC9.66%
ROIC/WACC1.03
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 Y7.34%
EPS Next 2Y9.64%
EPS Next 3Y9.83%
EPS Next 5Y10.2%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y-3.24%
Revenue growth 5Y7.09%
Sales Q2Q%3.87%
Revenue Next Year1.01%
Revenue Next 2Y2.27%
Revenue Next 3Y2.34%
Revenue Next 5Y4.76%
EBIT growth 1Y12.13%
EBIT growth 3Y-0.65%
EBIT growth 5Y9.57%
EBIT Next Year51.87%
EBIT Next 3Y18.28%
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 11.15 and the Price/Book (PB) ratio is 2.07.


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%.