BORGWARNER INC (BWA) Fundamental Analysis & Valuation

NYSE:BWA • US0997241064

Current stock price

54.48 USD
-0.49 (-0.89%)
At close:
54.1087 USD
-0.37 (-0.68%)
After Hours:

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.
  • In the past year BWA had a positive cash flow from operations.
  • 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

  • BWA's Return On Assets of 2.01% is fine compared to the rest of the industry. BWA outperforms 61.90% of its industry peers.
  • BWA has a better Return On Equity (5.09%) than 64.29% of its industry peers.
  • BWA has a Return On Invested Capital of 9.98%. This is amongst the best in the industry. BWA outperforms 88.10% 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 9.26%.
  • The last Return On Invested Capital (9.98%) for BWA is above the 3 year average (9.12%), which is a sign of increasing profitability.
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 has a Profit Margin of 1.93%. This is in the better half of the industry: BWA outperforms 64.29% of its industry peers.
  • BWA's Profit Margin has declined in the last couple of years.
  • The Operating Margin of BWA (10.21%) is better than 85.71% 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 52.38% of the companies in the same industry.
  • BWA's Gross Margin has been stable in the last couple of years.
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

  • BWA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, BWA has less shares outstanding
  • BWA has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, BWA has an improved debt to assets ratio.
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 3.17. This indicates that BWA is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of BWA (3.17) is better than 73.81% 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.
  • With an excellent Debt to FCF ratio value of 3.31, BWA belongs to the best of the industry, outperforming 80.95% 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.
  • 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 3.17
ROIC/WACC1.19
WACC8.38%
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

  • BWA has a Current Ratio of 2.07. This indicates that BWA is financially healthy and has no problem in meeting its short term obligations.
  • BWA has a Current ratio (2.07) which is comparable to the rest of the industry.
  • 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 71.43% 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.
  • The Earnings Per Share has been growing by 12.79% on average over the past years. This is quite good.
  • 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

  • The Earnings Per Share is expected to grow by 6.24% 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 4.36% on average per year.
EPS Next Y7.34%
EPS Next 2Y9.64%
EPS Next 3Y9.83%
EPS Next 5Y6.24%
Revenue Next Year1.1%
Revenue Next 2Y2.31%
Revenue Next 3Y2.37%
Revenue Next 5Y4.36%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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

  • A Price/Earnings ratio of 11.10 indicates a reasonable 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 80.95% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.86, BWA is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 10.34, the valuation of BWA can be described as very reasonable.
  • 78.57% of the companies in the same industry are more expensive than BWA, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 37.39. BWA is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.1
Fwd PE 10.34
BWA Price Earnings VS Forward Price EarningsBWA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, BWA is valued a bit cheaper than 78.57% of the companies in the same industry.
  • BWA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWA is cheaper than 83.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.52
EV/EBITDA 5.88
BWA Per share dataBWA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • BWA's 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)1.51
PEG (5Y)0.87
EPS Next 2Y9.64%
EPS Next 3Y9.83%

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

3

5. BWA Dividend Analysis

5.1 Amount

  • BWA has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.64, BWA pays a bit more dividend than its industry peers.
  • BWA's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.24%

5.2 History

  • The dividend of BWA decreases each year by -3.16%.
  • BWA has been paying a dividend for at least 10 years, so it has a reliable track record.
  • BWA has decreased its dividend 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 (4/10/2026, 8:09:13 PM)

After market: 54.1087 -0.37 (-0.68%)

54.48

-0.49 (-0.89%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-11
Earnings (Next)05-06
Inst Owners108.16%
Inst Owner Change-0.03%
Ins Owners0.72%
Ins Owner Change5.29%
Market Cap11.23B
Revenue(TTM)14.32B
Net Income(TTM)277.00M
Analysts73.33
Price Target65.39 (20.03%)
Short Float %3%
Short Ratio1.9
Dividend
Industry RankSector Rank
Dividend Yield 1.24%
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)31.32%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-3.52%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)-1.19%
Valuation
Industry RankSector Rank
PE 11.1
Fwd PE 10.34
P/S 0.78
P/FCF 9.52
P/OCF 6.81
P/B 2.06
P/tB 3.75
EV/EBITDA 5.88
EPS(TTM)4.91
EY9.01%
EPS(NY)5.27
Fwd EY9.67%
FCF(TTM)5.72
FCFY10.5%
OCF(TTM)8
OCFY14.68%
SpS69.47
BVpS26.41
TBVpS14.52
PEG (NY)1.51
PEG (5Y)0.87
Graham Number54.02
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 3.17
F-Score7
WACC8.38%
ROIC/WACC1.19
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 5Y6.24%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y-3.24%
Revenue growth 5Y7.09%
Sales Q2Q%3.87%
Revenue Next Year1.1%
Revenue Next 2Y2.31%
Revenue Next 3Y2.37%
Revenue Next 5Y4.36%
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 11.1 and the Price/Book (PB) ratio is 2.06.


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%.