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. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. 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.