BORGWARNER INC (BWA) Stock Fundamental Analysis

NYSE:BWA • US0997241064

61.125 USD
-0.59 (-0.96%)
Last: Feb 19, 2026, 10:23 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, BWA scores 6 out of 10 in our fundamental rating. BWA was compared to 41 industry peers in the Automobile Components industry. Both the health and profitability get an excellent rating, making BWA a very profitable company, without any liquidiy or solvency issues. BWA is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year BWA was profitable.
  • BWA had a positive operating cash flow in the past year.
  • BWA had positive earnings in each of the past 5 years.
  • 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

  • The Return On Assets of BWA (2.01%) is better than 63.41% of its industry peers.
  • With a decent Return On Equity value of 5.09%, BWA is doing good in the industry, outperforming 65.85% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 9.98%, BWA belongs to the top of the industry, outperforming 85.37% 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 9.03%.
  • 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's Profit Margin of 1.93% is fine compared to the rest of the industry. BWA outperforms 65.85% of its industry peers.
  • In the last couple of years the Profit Margin of BWA has declined.
  • BWA has a Operating Margin of 10.21%. This is amongst the best in the industry. BWA outperforms 87.80% of its industry peers.
  • BWA's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 19.29%, BWA perfoms like the industry average, outperforming 46.34% of the companies in the same 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. 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
  • Compared to 5 years ago, BWA has less shares outstanding
  • 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

  • BWA has an Altman-Z score of 3.32. This indicates that BWA is financially healthy and has little risk of bankruptcy at the moment.
  • BWA has a better Altman-Z score (3.32) than 75.61% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 3.31, BWA is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
  • BWA has a Debt/Equity ratio of 0.72. This is a neutral value indicating BWA is somewhat dependend on debt financing.
  • BWA's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. BWA is outperformed by 63.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 3.31
Altman-Z 3.32
ROIC/WACC1.23
WACC8.13%
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 has a Current ratio (2.07) which is in line with 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.
  • Looking at the Quick ratio, with a value of 1.70, BWA is in the better half of the industry, outperforming 73.17% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 13.66% over the past year.
  • Measured over the past years, BWA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.79% on average per year.
  • The Revenue has been growing slightly by 1.63% in the past year.
  • Measured over the past years, BWA shows a small growth in Revenue. The Revenue has been growing by 7.09% on average per year.
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 3.87% on average over the next years.
EPS Next Y6.48%
EPS Next 2Y8.24%
EPS Next 3Y5.71%
EPS Next 5Y6.24%
Revenue Next Year1.85%
Revenue Next 2Y2.59%
Revenue Next 3Y2.44%
Revenue Next 5Y3.87%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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.
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
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

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6

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.45, BWA is valued correctly.
  • Based on the Price/Earnings ratio, BWA is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
  • BWA is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 11.69, which indicates a very decent valuation of BWA.
  • Based on the Price/Forward Earnings ratio, BWA is valued a bit cheaper than 63.41% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.16, BWA is valued rather cheaply.
Industry RankSector Rank
PE 12.45
Fwd PE 11.69
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWA indicates a somewhat cheap valuation: BWA is cheaper than 75.61% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BWA indicates a somewhat cheap valuation: BWA is cheaper than 78.05% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.09
EV/EBITDA 6.78
BWA Per share dataBWA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • BWA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)0.97
EPS Next 2Y8.24%
EPS Next 3Y5.71%

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

3

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.10%, BWA has a reasonable but not impressive dividend return.
  • BWA's Dividend Yield is a higher than the industry average which is at 0.58.
  • With a Dividend Yield of 1.10, BWA pays less dividend than the S&P500 average, which is at 1.85.
Industry RankSector Rank
Dividend Yield 1.1%

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.
Dividend Growth(5Y)-3.16%
Div Incr Years0
Div Non Decr Years0
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 2Y8.24%
EPS Next 3Y5.71%
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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BORGWARNER INC

NYSE:BWA (2/19/2026, 10:23:08 AM)

61.125

-0.59 (-0.96%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners104.12%
Inst Owner Change-0.33%
Ins Owners1.03%
Ins Owner Change8.31%
Market Cap13.08B
Revenue(TTM)14.32B
Net Income(TTM)277.00M
Analysts72
Price Target49.71 (-18.67%)
Short Float %5.5%
Short Ratio3.42
Dividend
Industry RankSector Rank
Dividend Yield 1.1%
Yearly Dividend0.56
Dividend Growth(5Y)-3.16%
DP42.96%
Div Incr Years0
Div Non Decr Years0
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)-0.19%
PT rev (3m)5.86%
EPS NQ rev (1m)1.99%
EPS NQ rev (3m)4.06%
EPS NY rev (1m)0.5%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 12.45
Fwd PE 11.69
P/S 0.91
P/FCF 11.09
P/OCF 7.93
P/B 2.4
P/tB 4.37
EV/EBITDA 6.78
EPS(TTM)4.91
EY8.03%
EPS(NY)5.23
Fwd EY8.55%
FCF(TTM)5.51
FCFY9.02%
OCF(TTM)7.7
OCFY12.6%
SpS66.92
BVpS25.44
TBVpS13.99
PEG (NY)1.92
PEG (5Y)0.97
Graham Number53.01
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 3.32
F-Score7
WACC8.13%
ROIC/WACC1.23
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 Y6.48%
EPS Next 2Y8.24%
EPS Next 3Y5.71%
EPS Next 5Y6.24%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y-3.24%
Revenue growth 5Y7.09%
Sales Q2Q%3.87%
Revenue Next Year1.85%
Revenue Next 2Y2.59%
Revenue Next 3Y2.44%
Revenue Next 5Y3.87%
EBIT growth 1Y12.13%
EBIT growth 3Y-0.65%
EBIT growth 5Y9.57%
EBIT Next Year50.61%
EBIT Next 3Y11.63%
EBIT Next 5Y8.08%
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 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 6 / 10 to BORGWARNER INC (BWA). This can be considered as Fairly Valued.


Can you provide the profitability details for BORGWARNER INC?

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 12.45 and the Price/Book (PB) ratio is 2.4.


Is the dividend of BORGWARNER INC sustainable?

The dividend rating of BORGWARNER INC (BWA) is 3 / 10 and the dividend payout ratio is 42.96%.