BORGWARNER INC (BWA)
US0997241064 - Common Stock
Taking everything into account, BWA scores 4 out of 10 in our fundamental rating. BWA was compared to 82 industry peers in the Automobile Components industry. BWA has only an average score on both its financial health and profitability. BWA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BWA was profitable.
In the past year BWA had a positive cash flow from operations.
Each year in the past 5 years BWA has been profitable.
Each year in the past 5 years BWA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.93%, BWA belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
BWA's Return On Equity of 14.57% is amongst the best of the industry. BWA outperforms 91.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.19%, BWA is doing worse than 62.20% of the companies in the same industry.
BWA had an Average Return On Invested Capital over the past 3 years of 8.50%. This is in line with the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 14.57% | ||
| ROIC | 8.19% |
ROA(3y)4.37%
ROA(5y)4.79%
ROE(3y)10.51%
ROE(5y)11.03%
ROIC(3y)8.5%
ROIC(5y)8.66%
1.3 Margins
BWA has a Profit Margin of 6.33%. This is comparable to the rest of the industry: BWA outperforms 41.46% of 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 8.92%, BWA is doing worse than 60.98% of the companies in the same industry.
BWA's Operating Margin has declined in the last couple of years.
The Gross Margin of BWA (18.52%) is worse than 75.61% of its industry peers.
In the last couple of years the Gross Margin of BWA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.92% | ||
| PM (TTM) | 6.33% | ||
| GM | 18.52% |
OM growth 3Y-0.75%
OM growth 5Y-6.17%
PM growth 3Y-3.63%
PM growth 5Y-13.02%
GM growth 3Y-1.26%
GM growth 5Y-3.1%
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.
The number of shares outstanding for BWA has been reduced compared to 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
BWA has an Altman-Z score of 2.56. This is not the best score and indicates that BWA is in the grey zone with still only limited risk for bankruptcy at the moment.
BWA has a Altman-Z score (2.56) which is in line with its industry peers.
BWA has a debt to FCF ratio of 5.58. This is a neutral value as BWA would need 5.58 years to pay back of all of its debts.
BWA has a worse Debt to FCF ratio (5.58) than 67.07% of its industry peers.
BWA has a Debt/Equity ratio of 0.69. This is a neutral value indicating BWA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, BWA is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.58 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.11
WACC7.36%
2.3 Liquidity
A Current Ratio of 1.84 indicates that BWA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.84, BWA is doing good in the industry, outperforming 71.95% of the companies in the same industry.
BWA has a Quick Ratio of 1.48. 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 1.48 is amongst the best of the industry. BWA outperforms 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The earnings per share for BWA have decreased strongly by -10.04% in the last year.
The Earnings Per Share has been decreasing by -0.77% on average over the past years.
BWA shows a decrease in Revenue. In the last year, the revenue decreased by -4.16%.
BWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.16% yearly.
EPS 1Y (TTM)-10.04%
EPS 3Y17.11%
EPS 5Y-0.77%
EPS Q2Q%11.22%
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y11.78%
Revenue growth 5Y6.16%
Sales Q2Q%-4.78%
3.2 Future
BWA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.13% yearly.
BWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.19% yearly.
EPS Next Y-0.67%
EPS Next 2Y3.98%
EPS Next 3Y6.78%
EPS Next 5Y7.13%
Revenue Next Year-3.28%
Revenue Next 2Y0.36%
Revenue Next 3Y1.96%
Revenue Next 5Y4.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.64 indicates a rather cheap valuation of BWA.
Compared to the rest of the industry, the Price/Earnings ratio of BWA indicates a rather cheap valuation: BWA is cheaper than 84.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BWA to the average of the S&P500 Index (27.54), we can say BWA is valued rather cheaply.
A Price/Forward Earnings ratio of 6.89 indicates a rather cheap valuation of BWA.
76.83% of the companies in the same industry are more expensive than BWA, based on the Price/Forward Earnings ratio.
BWA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BWA is valued a bit cheaper than 62.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BWA is valued a bit cheaper than 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | 5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.98%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
BWA has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
BWA's Dividend Yield is slightly below the industry average, which is at 4.24.
Compared to an average S&P500 Dividend Yield of 2.36, BWA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of BWA decreases each year by -3.66%.
BWA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BWA pays out 11.04% of its income as dividend. This is a sustainable payout ratio.
DP11.04%
EPS Next 2Y3.98%
EPS Next 3Y6.78%
BORGWARNER INC
NYSE:BWA (12/24/2024, 7:59:32 PM)
Premarket: 32.19 +0.01 (+0.03%)32.18
+0.18 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners100.07%
Inst Owner Change-4.62%
Ins Owners0.76%
Ins Owner Change-4.67%
Market Cap7.04B
Analysts75.45
Price Target42.24 (31.26%)
Short Float %4.03%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Dividend Growth(5Y)-3.66%
DP11.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.62%
Min EPS beat(2)16.5%
Max EPS beat(2)16.74%
EPS beat(4)3
Avg EPS beat(4)11.21%
Min EPS beat(4)-5.48%
Max EPS beat(4)17.1%
EPS beat(8)6
Avg EPS beat(8)10.64%
EPS beat(12)10
Avg EPS beat(12)15.45%
EPS beat(16)14
Avg EPS beat(16)17.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-3.74%
Max Revenue beat(2)-2.65%
Revenue beat(4)1
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)1.44%
Revenue beat(8)3
Avg Revenue beat(8)0.29%
Revenue beat(12)5
Avg Revenue beat(12)-4.19%
Revenue beat(16)8
Avg Revenue beat(16)-1.66%
PT rev (1m)1.07%
PT rev (3m)1.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.69%
EPS NY rev (1m)0.52%
EPS NY rev (3m)3.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.59%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 6.89 | ||
| P/S | 0.5 | ||
| P/FCF | 8.55 | ||
| P/OCF | 4.57 | ||
| P/B | 1.14 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 5 |
EPS(TTM)4.21
EY13.08%
EPS(NY)4.67
Fwd EY14.51%
FCF(TTM)3.76
FCFY11.69%
OCF(TTM)7.05
OCFY21.9%
SpS64.79
BVpS28.15
TBVpS11.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 14.57% | ||
| ROCE | 11.07% | ||
| ROIC | 8.19% | ||
| ROICexc | 9.91% | ||
| ROICexgc | 15.82% | ||
| OM | 8.92% | ||
| PM (TTM) | 6.33% | ||
| GM | 18.52% | ||
| FCFM | 5.81% |
ROA(3y)4.37%
ROA(5y)4.79%
ROE(3y)10.51%
ROE(5y)11.03%
ROIC(3y)8.5%
ROIC(5y)8.66%
ROICexc(3y)10.83%
ROICexc(5y)11.18%
ROICexgc(3y)19.3%
ROICexgc(5y)19.37%
ROCE(3y)11.5%
ROCE(5y)11.71%
ROICexcg growth 3Y8.21%
ROICexcg growth 5Y-3.99%
ROICexc growth 3Y9.89%
ROICexc growth 5Y-5.76%
OM growth 3Y-0.75%
OM growth 5Y-6.17%
PM growth 3Y-3.63%
PM growth 5Y-13.02%
GM growth 3Y-1.26%
GM growth 5Y-3.1%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.58 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 110.46% | ||
| Cap/Sales | 5.07% | ||
| Interest Coverage | 10.8 | ||
| Cash Conversion | 80.51% | ||
| Profit Quality | 91.75% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 2.56 |
F-Score6
WACC7.36%
ROIC/WACC1.11
Cap/Depr(3y)109.92%
Cap/Depr(5y)104.1%
Cap/Sales(3y)4.98%
Cap/Sales(5y)4.84%
Profit Quality(3y)95.08%
Profit Quality(5y)100.09%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.04%
EPS 3Y17.11%
EPS 5Y-0.77%
EPS Q2Q%11.22%
EPS Next Y-0.67%
EPS Next 2Y3.98%
EPS Next 3Y6.78%
EPS Next 5Y7.13%
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y11.78%
Revenue growth 5Y6.16%
Sales Q2Q%-4.78%
Revenue Next Year-3.28%
Revenue Next 2Y0.36%
Revenue Next 3Y1.96%
Revenue Next 5Y4.19%
EBIT growth 1Y-7.06%
EBIT growth 3Y10.94%
EBIT growth 5Y-0.39%
EBIT Next Year45.45%
EBIT Next 3Y17.6%
EBIT Next 5Y11.05%
FCF growth 1Y32.32%
FCF growth 3Y-12.76%
FCF growth 5Y-3.71%
OCF growth 1Y26.21%
OCF growth 3Y3.48%
OCF growth 5Y3.1%