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Market Cap

US$12.3b

Last Updated

2021/05/17 23:39 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has BorgWarner's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BWA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BWA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.4%

BWA

-0.5%

US Auto Components

-0.6%

US Market


1 Year Return

74.8%

BWA

93.8%

US Auto Components

46.0%

US Market

Return vs Industry: BWA underperformed the US Auto Components industry which returned 93.8% over the past year.

Return vs Market: BWA exceeded the US Market which returned 46% over the past year.


Shareholder returns

BWAIndustryMarket
7 Day-2.4%-0.5%-0.6%
30 Day5.5%0.4%-1.8%
90 Day18.0%-7.8%0.2%
1 Year77.9%74.8%94.9%93.8%48.4%46.0%
3 Year4.0%-1.3%22.6%14.2%60.5%50.4%
5 Year72.5%59.1%91.5%64.8%125.9%100.9%

Long-Term Price Volatility Vs. Market

How volatile is BorgWarner's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BorgWarner undervalued compared to its fair value and its price relative to the market?

26.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWA ($51.65) is trading below our estimate of fair value ($69.99)

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


Price To Earnings Ratio

PE vs Industry: BWA is good value based on its PE Ratio (26.2x) compared to the US Auto Components industry average (31x).

PE vs Market: BWA is poor value based on its PE Ratio (26.2x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: BWA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: BWA is good value based on its PB Ratio (1.9x) compared to the US Auto Components industry average (2.4x).


Future Growth

How is BorgWarner forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWA's forecast earnings growth (17.6% per year) is above the savings rate (2%).

Earnings vs Market: BWA's earnings (17.6% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: BWA's revenue (7.4% per year) is forecast to grow slower than the US market (9% per year).

High Growth Revenue: BWA's revenue (7.4% 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 (15.4%).


Past Performance

How has BorgWarner performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWA has a large one-off loss of $231.0M impacting its March 31 2021 financial results.

Growing Profit Margin: BWA's current net profit margins (3.7%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: BWA's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: BWA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BWA had negative earnings growth (-39%) over the past year, making it difficult to compare to the Auto Components industry average (39.8%).


Return on Equity

High ROE: BWA's Return on Equity (7.9%) is considered low.


Financial Health

How is BorgWarner's financial position?


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 ($5.4B).


Debt to Equity History and Analysis

Debt Level: BWA's debt to equity ratio (56.5%) is considered high.

Reducing Debt: BWA's debt to equity ratio has reduced from 69.1% to 56.5% over the past 5 years.

Debt Coverage: BWA's debt is well covered by operating cash flow (33.6%).

Interest Coverage: BWA's interest payments on its debt are well covered by EBIT (17.2x coverage).


Balance Sheet


Dividend

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

1.32%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 18 2021Ex Dividend DateMay 28 2021Dividend Pay DateJun 15 202118 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BWA's dividend (1.32%) is higher than the bottom 25% of dividend payers in the US market (1.25%).

High Dividend: BWA's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.41%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.5%), BWA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWA's dividends in 3 years are forecast to be thoroughly covered by earnings (13.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Fred Lissalde (53 yo)

2.75yrs

Tenure

US$9,848,772

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 ($USD9.85M) is about average for companies of similar size in the US market ($USD11.19M).

Compensation vs Earnings: Fred's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BWA's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: BWA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 15.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: BorgWarner Inc.
  • Ticker: BWA
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$12.335b
  • Shares outstanding: 239.85m
  • Website: https://www.borgwarner.com

Number of Employees


Location

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

Listings


Biography

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company’s Engine segment offers turbocharger and turbocharger actuators; eBoosters; and timing systems produc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/17 23:39
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.