BORGWARNER INC (BWA) Stock Fundamental Analysis

NYSE:BWA • US0997241064

66.55 USD
+0.45 (+0.68%)
At close: Feb 12, 2026
66.92 USD
+0.37 (+0.56%)
Pre-Market: 2/13/2026, 8:00:53 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

BWA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. Both the profitability and the financial health of BWA get a neutral evaluation. Nothing too spectacular is happening here. BWA has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • BWA had positive earnings in the past year.
  • In the past year BWA had a positive cash flow from operations.
  • Of the past 5 years BWA 4 years were profitable.
  • Of the past 5 years BWA 4 years 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 500M 1B 1.5B

1.2 Ratios

  • The Return On Assets of BWA (0.92%) is comparable to the rest of the industry.
  • BWA has a Return On Equity (2.24%) which is in line with its industry peers.
  • The Return On Invested Capital of BWA (9.21%) is better than 85.71% 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 9.03%.
  • 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 RankSector 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%
BWA Yearly ROA, ROE, ROICBWA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

  • BWA has a Profit Margin (0.94%) which is in line with its industry peers.
  • 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.
  • BWA's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
BWA Yearly Profit, Operating, Gross MarginsBWA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • There is no outstanding debt for BWA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
BWA Yearly Shares OutstandingBWA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

2.2 Solvency

  • BWA has an Altman-Z score of 3.25. 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 3.25, BWA is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
  • The Debt to FCF ratio of BWA is 3.15, which is a good value as it means it would take BWA, 3.15 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 3.15, BWA is doing good in the industry, outperforming 76.19% 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.
  • BWA has a Debt to Equity ratio (0.65) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 3.15
Altman-Z 3.25
ROIC/WACC1.06
WACC8.71%
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 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 2.05 indicates that BWA has no problem at all paying its short term obligations.
  • BWA has a better Current ratio (2.05) than 61.90% of its industry peers.
  • BWA has a Quick Ratio of 1.69. 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 1.69 is fine compared to the rest of the industry. BWA outperforms 76.19% of its industry peers.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 1.69
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 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 13.66% over the past year.
  • The Earnings Per Share has been growing by 12.79% on average over the past years. This is quite good.
EPS 1Y (TTM)13.66%
EPS 3Y2.2%
EPS 5Y12.79%
EPS Q2Q%33.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
  • Based on estimates for the next years, BWA will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
EPS Next Y6.48%
EPS Next 2Y8.24%
EPS Next 3Y5.71%
EPS Next 5Y6.24%
Revenue Next Year3.13%
Revenue Next 2Y2.84%
Revenue Next 3Y4.21%
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.
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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • BWA is valuated correctly with a Price/Earnings ratio of 13.55.
  • Compared to the rest of the industry, the Price/Earnings ratio of BWA indicates a somewhat cheap valuation: BWA is cheaper than 71.43% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.67. BWA is valued rather cheaply when compared to this.
  • BWA is valuated correctly with a Price/Forward Earnings ratio of 12.73.
  • The rest of the industry has a similar Price/Forward Earnings ratio as BWA.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.69, BWA is valued rather cheaply.
Industry RankSector Rank
PE 13.55
Fwd PE 12.73
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

  • 69.05% of the companies in the same industry are more expensive than BWA, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, BWA is valued a bit cheaper than 76.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.48
EV/EBITDA 7.63
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.
PEG (NY)2.09
PEG (5Y)1.06
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

  • BWA has a Yearly Dividend Yield of 1.02%.
  • Compared to an average industry Dividend Yield of 0.59, BWA pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, BWA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.02%

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
BWA Yearly Dividends per shareBWA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

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 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 200M 400M 600M 800M
BWA Dividend Payout.BWA Dividend Payout, showing the Payout Ratio.BWA Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

BORGWARNER INC

NYSE:BWA (2/12/2026, 8:04:00 PM)

Premarket: 66.92 +0.37 (+0.56%)

66.55

+0.45 (+0.68%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners104.12%
Inst Owner Change-2.82%
Ins Owners1.03%
Ins Owner Change7.7%
Market Cap14.24B
Revenue(TTM)N/A
Net Income(TTM)134.00M
Analysts72
Price Target49.71 (-25.3%)
Short Float %5.49%
Short Ratio3.92
Dividend
Industry RankSector Rank
Dividend Yield 1.02%
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)-0.19%
PT rev (3m)5.86%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)4.06%
EPS NY rev (1m)0.5%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 13.55
Fwd PE 12.73
P/S 1
P/FCF 11.48
P/OCF 8.34
P/B 2.38
P/tB 4.57
EV/EBITDA 7.63
EPS(TTM)4.91
EY7.38%
EPS(NY)5.23
Fwd EY7.86%
FCF(TTM)5.8
FCFY8.71%
OCF(TTM)7.98
OCFY12%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)2.09
PEG (5Y)1.06
Graham Number55.61
Profitability
Industry RankSector 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 RankSector 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 3.25
F-Score8
WACC8.71%
ROIC/WACC1.06
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.87%
Revenue Next Year3.13%
Revenue Next 2Y2.84%
Revenue Next 3Y4.21%
Revenue Next 5Y3.87%
EBIT growth 1Y7.59%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year54.95%
EBIT Next 3Y18.12%
EBIT Next 5Y8.53%
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 for BWA stock?

ChartMill assigns a valuation rating of 5 / 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 5 / 10.


What are the PE and PB ratios of BORGWARNER INC (BWA) stock?

The Price/Earnings (PE) ratio for BORGWARNER INC (BWA) is 13.55 and the Price/Book (PB) ratio is 2.38.


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%.