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Catalysts
- Are there any products or services that could move sales or earnings meaningfully?
- yes
- Are there any industry tailwinds this stock is benefitting or hindered from?
- Don't know
Assumptions
Where do you think revenue will be in 5 years time? and why?
- Where do you think earnings will be in 5 years time? and why?
- 13.5%
Risks
- Are there any risks that your catalysts won't play out as expected?
- Like most auto-parts suppliers, BorgWarner's operations are capital-intensive with significant fixed costs, so a sudden decline in volume (like that caused by COVID-19) translates into a significant drop in profitability.
- Are there any regulatory or competitor risks that could change the outcomes above?
- Commodity costs can be volatile and, under inflationary conditions, could be a margin headwind.
Valuation
- Where do you think the business will be in 3, 5 or 10 years time?
- What do you think revenue and profit margins will be?
- 13.5%
- What do you think the valuation multiple will bein the future?
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Disclaimer
The user julio holds no position in NYSE:BWA. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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WA
Consensus Narrative from 17 Analysts
Operational Efficiencies Will Support Future Success In Asian EV Markets
Key Takeaways BorgWarner's operational efficiencies and cost controls are improving margins, enhancing financial performance and supporting earnings growth. Entry into Asian electric vehicle markets and capital allocation strategies highlight confidence in future earnings and effective cash management.
View narrativeUS$39.54
FV
23.5% undervalued intrinsic discount5.55%
Revenue growth p.a.
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9 days ago author updated this narrative
