BWA

BorgWarner BMV:BWA * Stock Report

Last Price

Mex$668.00

Market Cap

Mex$178.6b

7D

0%

1Y

n/a

Updated

27 Jul, 2022

Data

Company Financials +
BWA * fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends2/6

BWA * Stock Overview

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide.

BorgWarner Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BorgWarner
Historical stock prices
Current Share PriceUS$668.00
52 Week HighUS$989.00
52 Week LowUS$668.00
Beta1.38
1 Month Change0%
3 Month Changen/a
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-24.32%

Recent News & Updates

Shareholder Returns

BWA *MX Auto ComponentsMX Market
7D0%4.1%0.4%
1Yn/a-20.0%-0.8%

Return vs Industry: Insufficient data to determine how BWA * performed against the MX Auto Components industry.

Return vs Market: Insufficient data to determine how BWA * performed against the MX Market.

Price Volatility

Is BWA *'s price volatile compared to industry and market?
BWA * volatility
BWA * Average Weekly Movementn/a
Auto Components Industry Average Movement6.2%
Market Average Movement4.5%
10% most volatile stocks in MX Market7.6%
10% least volatile stocks in MX Market3.1%

Stable Share Price: Insufficient data to determine BWA *'s volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine BWA *'s volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
198749,300Fred Lissaldehttps://www.borgwarner.com

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through four segments: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, canisters, cabin heaters, battery modules and systems, battery packs, battery heaters, and battery charging.

BorgWarner Fundamentals Summary

How do BorgWarner's earnings and revenue compare to its market cap?
BWA * fundamental statistics
Market CapUS$8.73b
Earnings (TTM)US$672.00m
Revenue (TTM)US$14.70b

13.0x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BWA * income statement (TTM)
RevenueUS$14.70b
Cost of RevenueUS$11.92b
Gross ProfitUS$2.79b
Other ExpensesUS$2.12b
EarningsUS$672.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)2.80
Gross Margin18.96%
Net Profit Margin4.57%
Debt/Equity Ratio58.4%

How did BWA * perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

24%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BWA * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BWA *?

Other financial metrics that can be useful for relative valuation.

BWA * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA5.6x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does BWA *'s PE Ratio compare to its peers?

BWA * PE Ratio vs Peers
The above table shows the PE ratio for BWA * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.2x
GISSA A Grupo Industrial Saltillo. de
65.6x17.0%Mex$9.7b
601799 Changzhou Xingyu Automotive Lighting SystemsLtd
50.7x27.5%CN¥47.3b
5802 Sumitomo Electric Industries
12.3x11.3%JP¥1.2t
7259 Aisin
8.1x8.9%JP¥1.1t
BWA * BorgWarner
13x16.5%Mex$8.7b

Price-To-Earnings vs Peers: BWA * is good value based on its Price-To-Earnings Ratio (13x) compared to the peer average (34.2x).


Price to Earnings Ratio vs Industry

How does BWA *'s PE Ratio compare vs other companies in the Global Auto Components Industry?

Price-To-Earnings vs Industry: BWA * is good value based on its Price-To-Earnings Ratio (13x) compared to the Global Auto Components industry average (20.8x)


Price to Earnings Ratio vs Fair Ratio

What is BWA *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BWA * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BWA *'s Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of BWA * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BWA * (MX$668) is trading below our estimate of fair value (MX$2189.46)

Significantly Below Fair Value: BWA * is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

How is BorgWarner forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWA *'s forecast earnings growth (16.5% per year) is above the savings rate (7.2%).

Earnings vs Market: BWA *'s earnings (16.5% per year) are forecast to grow faster than the MX market (9.7% per year).

High Growth Earnings: BWA *'s earnings are forecast to grow, but not significantly.

Revenue vs Market: BWA *'s revenue (8.5% per year) is forecast to grow faster than the MX market (6.1% per year).

High Growth Revenue: BWA *'s revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWA *'s Return on Equity is forecast to be low in 3 years time (14.5%).


Discover growth companies

Past Performance

How has BorgWarner performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BWA * has a large one-off loss of $375.0M impacting its March 31 2022 financial results.

Growing Profit Margin: BWA *'s current net profit margins (4.6%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: BWA *'s earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: BWA *'s earnings growth over the past year (54.1%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: BWA * earnings growth over the past year (54.1%) exceeded the Auto Components industry 6.8%.


Return on Equity

High ROE: BWA *'s Return on Equity (10.5%) is considered low.


Discover strong past performing companies

Financial Health

How is BorgWarner's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BWA *'s short term assets ($6.6B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: BWA *'s short term assets ($6.6B) exceed its long term liabilities ($5.5B).


Debt to Equity History and Analysis

Debt Level: BWA *'s net debt to equity ratio (38%) is considered satisfactory.

Reducing Debt: BWA *'s debt to equity ratio has reduced from 65.9% to 58.4% over the past 5 years.

Debt Coverage: BWA *'s debt is well covered by operating cash flow (25.2%).

Interest Coverage: BWA *'s interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is BorgWarner current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.87%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BWA *'s dividend (1.87%) isn’t notable compared to the bottom 25% of dividend payers in the MX market (2.09%).

High Dividend: BWA *'s dividend (1.87%) is low compared to the top 25% of dividend payers in the MX market (5.89%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BWA * has been paying a dividend for less than 10 years.

Growing Dividend: BWA *'s dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.1%), BWA *'s dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.7%), BWA *'s dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Fred Lissalde (55 yo)

3.92yrs

Tenure

US$17,592,090

Compensation

Mr. Frederic B. Lissalde, also known as Fred, has been an Independent Director of Autoliv, Inc. since December 8, 2020. Mr. Lissalde has been President, Chief Executive Officer and Director of BorgWarner I...


CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD17.59M) is above average for companies of similar size in the MX market ($USD3.03M).

Compensation vs Earnings: Fred's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BWA *'s management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: BWA *'s board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BWA * insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BorgWarner Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: BorgWarner Inc.
  • Ticker: BWA *
  • Exchange: BMV
  • Founded: 1987
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: US$8.735b
  • Listing Market Cap: US$178.622b
  • Shares outstanding: 239.57m
  • Website: https://www.borgwarner.com

Number of Employees


Location

  • BorgWarner Inc.
  • 3850 Hamlin Road
  • Auburn Hills
  • Michigan
  • 48326
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/27 00:00
End of Day Share Price2022/06/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.