We Think BorgWarner's (NYSE:BWA) Healthy Earnings Might Be Conservative
May 09
U.S. Auto Components Industry Analysis
UpdatedMay 09, 2024
DataAggregated Company Financials
Companies55
- 7D6.1%
- 3M3.5%
- 1Y-7.6%
- YTD-9.2%
In the last week, the Auto Components industry is up 6.1%, with Aptiv up 19%. In contrast, the industry has lost 7.6% in the last 12 months. Looking forward, earnings are forecast to grow by 19% annually.
Industry Valuation and Performance
Has the U.S. Auto Components Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | US$118.4b | US$153.7b | US$5.1b | 18.7x | 23.3x | 0.8x |
| Sat, 06 Apr 2024 | US$119.4b | US$153.8b | US$5.1b | 19.7x | 23.6x | 0.8x |
| Mon, 04 Mar 2024 | US$118.9b | US$155.6b | US$5.2b | 19.5x | 22.7x | 0.8x |
| Wed, 31 Jan 2024 | US$120.0b | US$156.8b | US$4.5b | 17x | 26.6x | 0.8x |
| Fri, 29 Dec 2023 | US$136.0b | US$156.2b | US$4.3b | 16.9x | 31.6x | 0.9x |
| Sun, 26 Nov 2023 | US$127.2b | US$156.2b | US$4.3b | 15.2x | 29.6x | 0.8x |
| Tue, 24 Oct 2023 | US$121.8b | US$154.9b | US$3.0b | 19.4x | 40.4x | 0.8x |
| Thu, 21 Sep 2023 | US$135.9b | US$154.6b | US$3.0b | 20.9x | 45.6x | 0.9x |
| Sat, 19 Aug 2023 | US$130.5b | US$154.6b | US$3.0b | 20.6x | 43.8x | 0.8x |
| Mon, 17 Jul 2023 | US$146.3b | US$152.7b | US$3.3b | 18.8x | 44.1x | 1x |
| Wed, 14 Jun 2023 | US$135.9b | US$149.4b | US$3.1b | 18.5x | 44.1x | 0.9x |
| Fri, 12 May 2023 | US$124.8b | US$147.5b | US$2.9b | 18x | 42.7x | 0.8x |
| Sun, 09 Apr 2023 | US$128.3b | US$145.5b | US$3.3b | 17.8x | 38.8x | 0.9x |
| Tue, 07 Mar 2023 | US$143.9b | US$145.7b | US$3.1b | 19.6x | 46x | 1x |
| Thu, 02 Feb 2023 | US$141.8b | US$145.5b | US$3.6b | 18.7x | 39.8x | 1x |
| Sat, 31 Dec 2022 | US$118.5b | US$145.4b | US$3.2b | 15.7x | 36.9x | 0.8x |
| Mon, 28 Nov 2022 | US$123.7b | US$144.9b | US$3.4b | 20x | 35.9x | 0.9x |
| Wed, 26 Oct 2022 | US$92.1b | US$137.7b | US$3.4b | 18.5x | 26.7x | 0.7x |
| Fri, 23 Sep 2022 | US$88.8b | US$137.2b | US$3.4b | 18.7x | 26.1x | 0.6x |
| Sun, 21 Aug 2022 | US$105.7b | US$137.2b | US$3.4b | 22.7x | 31x | 0.8x |
| Tue, 19 Jul 2022 | US$93.0b | US$132.9b | US$3.7b | 13.4x | 24.9x | 0.7x |
| Thu, 16 Jun 2022 | US$94.6b | US$134.2b | US$3.6b | 15x | 26.6x | 0.7x |
| Sat, 14 May 2022 | US$99.2b | US$134.2b | US$3.5b | 16.8x | 28x | 0.7x |
| Mon, 11 Apr 2022 | US$109.0b | US$133.3b | US$3.6b | 18.2x | 30.4x | 0.8x |
| Wed, 09 Mar 2022 | US$105.0b | US$133.6b | US$3.1b | 19.9x | 34.3x | 0.8x |
| Fri, 04 Feb 2022 | US$130.1b | US$132.3b | US$2.2b | 20.5x | 59.8x | 1x |
| Sun, 02 Jan 2022 | US$150.0b | US$132.8b | US$2.4b | 19.9x | 62.2x | 1.1x |
| Tue, 30 Nov 2021 | US$151.7b | US$132.8b | US$2.4b | 20.2x | 62.5x | 1.1x |
| Thu, 28 Oct 2021 | US$146.3b | US$131.2b | US$2.5b | 18.5x | 57.4x | 1.1x |
| Sat, 25 Sep 2021 | US$141.1b | US$131.3b | US$2.2b | 17.9x | 63x | 1.1x |
| Mon, 23 Aug 2021 | US$139.7b | US$131.4b | US$2.2b | 16.8x | 63.3x | 1.1x |
| Sat, 10 Jul 2021 | US$145.2b | US$128.3b | US$1.7b | 20.8x | 83.6x | 1.1x |
Price to Earnings Ratio
-100.4x
Current Industry PE
- Investors are pessimistic on the American Auto Components industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 23.3x which is lower than its 3-year average PE of 37.3x.
- The industry is trading close to its 3-year average PS ratio of 0.89x.
Past Earnings Growth
- Total earnings for the Auto Components industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 10% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Consumer Discretionary industry?
| US Market | 3.30% | |
| Consumer Discretionary | 3.12% | |
| Auto Components | 6.11% | |
| Auto Parts and Equipment | 6.22% | |
| Tires and Rubber | 2.67% | |
Industry PE
- Investors are most optimistic about the Auto Parts and Equipment industry even though it's trading below its 3-year average PE ratio of 38.5x.
- Analysts are expecting annual earnings growth of 17.4%, which is lower than the prior year's growth of 20.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Tires and Rubber industry, expecting annual earnings growth of 67% over the next 5 years.
- In contrast, the Auto Parts and Equipment industry is expected to see its earnings grow by 17% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| APTV Aptiv | US$83.20 | 19.3% +US$3.6b | -12.3% | PE7.6x | |
| BWA BorgWarner | US$37.51 | 14.1% +US$954.7m | -15.3% | PE12.6x | |
| MOD Modine Manufacturing | US$104.68 | 11.2% +US$549.7m | 413.4% | PE24.2x | |
| ALV Autoliv | US$124.44 | 3.3% +US$326.3m | 41.6% | PE18.8x | |
| LEA Lear | US$129.18 | 3.9% +US$273.1m | 4.0% | PE13.6x |
