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BorgWarner

NYSE:BWA
Snowflake Description

Solid track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BWA
NYSE
$9B
Market Cap
  1. Home
  2. US
  3. Automobiles
Company description

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The last earnings update was 59 days ago. More info.


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BWA Share Price and Events
7 Day Returns
-0.5%
NYSE:BWA
2.5%
US Auto Components
0.2%
US Market
1 Year Returns
-16.6%
NYSE:BWA
-16.7%
US Auto Components
6.3%
US Market
BWA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BorgWarner (BWA) -0.5% 18.2% 8.3% -16.6% 14.3% -28.6%
US Auto Components 2.5% 14% 9.2% -16.7% 9.4% 6.9%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • BWA underperformed the Market in United States of America which returned 6.3% over the past year.
Price Volatility
BWA
Industry
5yr Volatility vs Market

BWA Value

 Is BorgWarner undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BorgWarner to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BorgWarner.

NYSE:BWA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BWA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.19
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.193 (1 + (1- 21%) (23.13%))
1.276
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.28
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.276 * 5.96%)
10.33%

Discounted Cash Flow Calculation for NYSE:BWA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for BorgWarner is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:BWA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.33%)
2019 587.74 Analyst x7 532.70
2020 696.41 Analyst x8 572.09
2021 717.23 Est @ 2.99% 534.01
2022 738.12 Est @ 2.91% 498.10
2023 759.21 Est @ 2.86% 464.35
2024 780.61 Est @ 2.82% 432.73
2025 802.41 Est @ 2.79% 403.16
2026 824.66 Est @ 2.77% 375.54
2027 847.43 Est @ 2.76% 349.77
2028 870.75 Est @ 2.75% 325.73
Present value of next 10 years cash flows $4,488.17
NYSE:BWA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $870.75 × (1 + 2.73%) ÷ (10.33% – 2.73%)
$11,766.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,766.30 ÷ (1 + 10.33%)10
$4,401.60
NYSE:BWA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,488.17 + $4,401.60
$8,889.77
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,889.77 / 207.61
$42.82
NYSE:BWA Discount to Share Price
Calculation Result
Value per share (USD) From above. $42.82
Current discount Discount to share price of $44.00
= -1 x ($44.00 - $42.82) / $42.82
-2.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of BorgWarner is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BorgWarner's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BorgWarner's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BWA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $4.47
NYSE:BWA Share Price ** NYSE (2019-04-18) in USD $44
United States of America Auto Components Industry PE Ratio Median Figure of 28 Publicly-Listed Auto Components Companies 15.36x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BorgWarner.

NYSE:BWA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BWA Share Price ÷ EPS (both in USD)

= 44 ÷ 4.47

9.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BorgWarner is good value based on earnings compared to the US Auto Components industry average.
  • BorgWarner is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does BorgWarner's expected growth come at a high price?
Raw Data
NYSE:BWA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
6.4%per year
United States of America Auto Components Industry PEG Ratio Median Figure of 25 Publicly-Listed Auto Components Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:BWA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.84x ÷ 6.4%

1.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BorgWarner is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on BorgWarner's assets?
Raw Data
NYSE:BWA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $20.29
NYSE:BWA Share Price * NYSE (2019-04-18) in USD $44
United States of America Auto Components Industry PB Ratio Median Figure of 40 Publicly-Listed Auto Components Companies 1.5x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NYSE:BWA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BWA Share Price ÷ Book Value per Share (both in USD)

= 44 ÷ 20.29

2.17x

* Primary Listing of BorgWarner.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BorgWarner is overvalued based on assets compared to the US Auto Components industry average.
X
Value checks
We assess BorgWarner's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. BorgWarner has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BWA Future Performance

 How is BorgWarner expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BorgWarner expected to grow at an attractive rate?
  • BorgWarner's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • BorgWarner's earnings growth is positive but not above the United States of America market average.
  • BorgWarner's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BWA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BWA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 6.4%
NYSE:BWA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 4.6%
United States of America Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BWA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BWA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 13,692 1,294 3
2022-12-31 12,419 1,146 4
2021-12-31 11,748 1,067 8
2020-12-31 10,892 1,331 955 18
2019-12-31 10,288 1,228 869 18
NYSE:BWA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 10,530 1,127 931
2018-09-30 10,543 1,113 555
2018-06-30 10,481 1,086 536
2018-03-31 10,177 1,155 476
2017-12-31 9,799 1,180 440
2017-09-30 9,472 1,067 293
2017-06-30 9,270 1,073 191
2017-03-31 9,209 1,062 144
2016-12-31 9,071 1,036 595
2016-09-30 8,935 991 537
2016-06-30 8,605 911 611
2016-03-31 8,308 870 595

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BorgWarner's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
  • BorgWarner's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BWA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from BorgWarner Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BWA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 6.44 6.44 6.44 1.00
2022-12-31 5.60 5.85 5.10 3.00
2021-12-31 5.20 5.41 4.85 3.00
2020-12-31 4.66 4.97 4.45 9.00
2019-12-31 4.20 4.38 4.00 9.00
NYSE:BWA Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 4.47
2018-09-30 2.66
2018-06-30 2.56
2018-03-31 2.27
2017-12-31 2.09
2017-09-30 1.39
2017-06-30 0.90
2017-03-31 0.67
2016-12-31 2.78
2016-09-30 2.48
2016-06-30 2.78
2016-03-31 2.68

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BorgWarner is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BorgWarner's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BorgWarner has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BWA Past Performance

  How has BorgWarner performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BorgWarner's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BorgWarner's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • BorgWarner's 1-year earnings growth exceeds its 5-year average (111.6% vs -6%)
  • BorgWarner's earnings growth has exceeded the US Auto Components industry average in the past year (111.6% vs 15.4%).
Earnings and Revenue History
BorgWarner's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BorgWarner Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BWA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 10,529.60 930.70 936.30
2018-09-30 10,543.20 554.50 955.80
2018-06-30 10,480.90 535.60 951.40
2018-03-31 10,176.60 475.80 931.50
2017-12-31 9,799.30 439.90 894.00
2017-09-30 9,471.90 292.80 872.30
2017-06-30 9,269.90 191.20 1,028.60 -170.30
2017-03-31 9,209.40 143.60 846.90
2016-12-31 9,071.00 595.00 813.10
2016-09-30 8,935.10 537.10 778.80
2016-06-30 8,604.90 611.20 546.80 170.30
2016-03-31 8,307.60 594.90 682.20
2015-12-31 8,023.20 609.70 662.00
2015-09-30 7,892.00 624.30 653.00
2015-06-30 8,040.10 633.50 679.50
2015-03-31 8,205.20 675.60 693.30
2014-12-31 8,305.10 655.80 698.90
2014-09-30 8,198.60 657.30 696.60
2014-06-30 7,972.70 657.50 679.80
2014-03-31 7,669.60 641.40 654.20
2013-12-31 7,436.60 624.30 639.70
2013-09-30 7,270.30 604.10 628.80
2013-06-30 7,159.30 538.40 622.10
2013-03-31 7,121.80 484.90 619.60
2012-12-31 7,183.20 500.90 629.30
2012-09-30 7,237.80 501.70 619.90
2012-06-30 7,334.40 542.20 620.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • BorgWarner has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • BorgWarner used its assets more efficiently than the US Auto Components industry average last year based on Return on Assets.
  • BorgWarner has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess BorgWarner's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BorgWarner has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BWA Health

 How is BorgWarner's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BorgWarner's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BorgWarner is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BorgWarner's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of BorgWarner's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BorgWarner Company Filings, last reported 3 months ago.

NYSE:BWA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,344.80 2,113.30 739.40
2018-09-30 4,170.20 2,136.30 361.80
2018-06-30 4,054.00 2,173.00 361.90
2018-03-31 4,015.80 2,325.50 409.70
2017-12-31 3,825.90 2,188.30 545.30
2017-09-30 3,916.30 2,395.10 414.30
2017-06-30 3,691.90 2,219.70 387.10
2017-03-31 3,479.70 2,295.40 358.40
2016-12-31 3,301.90 2,219.50 443.70
2016-09-30 3,790.70 2,615.30 518.70
2016-06-30 3,756.10 2,634.80 495.00
2016-03-31 3,761.10 2,598.40 392.30
2015-12-31 3,631.50 2,553.00 577.70
2015-09-30 3,787.90 1,809.10 1,033.30
2015-06-30 3,751.50 1,803.80 1,107.90
2015-03-31 3,562.50 1,838.40 1,035.50
2014-12-31 3,690.90 1,340.00 797.80
2014-09-30 3,800.20 1,311.50 782.80
2014-06-30 3,893.70 1,245.30 771.40
2014-03-31 3,737.30 1,366.10 808.10
2013-12-31 3,632.40 1,222.60 939.50
2013-09-30 3,434.70 1,272.30 920.40
2013-06-30 3,256.00 1,230.10 817.00
2013-03-31 3,161.60 1,200.70 695.40
2012-12-31 3,146.10 1,067.20 715.70
2012-09-30 3,105.50 1,102.80 621.50
2012-06-30 2,934.50 1,153.20 481.90
  • BorgWarner's level of debt (48.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (33.7% vs 48.6% today).
  • Debt is well covered by operating cash flow (53.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.3x coverage).
X
Financial health checks
We assess BorgWarner's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BorgWarner has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BWA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.55%
Current annual income from BorgWarner dividends. Estimated to be 1.61% next year.
If you bought $2,000 of BorgWarner shares you are expected to receive $31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • BorgWarner's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • BorgWarner's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BWA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BWA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.79 1.00
2021-12-31 0.76 4.00
2020-12-31 0.71 11.00
2019-12-31 0.68 11.00
NYSE:BWA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-14 0.680 1.691
2018-11-08 0.680 1.793
2018-07-26 0.680 1.604
2018-04-26 0.680 1.424
2018-02-08 0.680 1.326
2017-11-09 0.680 1.263
2017-07-27 0.560 1.150
2017-04-27 0.560 1.308
2016-11-09 0.560 1.407
2016-07-26 0.520 1.506
2016-04-27 0.520 1.588
2016-02-11 0.520 1.466
2015-11-11 0.520 1.418
2015-07-29 0.520 1.185
2015-04-29 0.520 0.896
2015-02-11 0.520 0.857
2014-11-12 0.520 0.943
2014-07-21 0.520 0.887
2014-04-21 0.500 0.789
2014-01-22 0.500 0.847
2013-10-18 0.500 0.933
2013-07-25 0.500 1.012
2011-04-28 0.000 0.000
2011-02-10 0.000 0.000
2010-10-27 0.000 0.000
2010-07-30 0.000 0.000
2010-04-29 0.000 0.000
2010-02-11 0.000 0.000
2009-11-03 0.000 0.000
2009-10-28 0.000 0.000
2009-04-20 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, BorgWarner has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but BorgWarner only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of BorgWarner's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.8x coverage).
X
Income/ dividend checks
We assess BorgWarner's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BorgWarner afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BorgWarner has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BWA Management

 What is the CEO of BorgWarner's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Frederic Lissalde
COMPENSATION $5,008,443
AGE 50
TENURE AS CEO 0.7 years
CEO Bio

Mr. Frederic B. Lissalde has been President, Chief Executive Officer and Director of BorgWarner Inc. since August 01, 2018. He was Executive Vice President and Chief Operating Officer of BorgWarner Inc. since January 2018 until August 01, 2018. He has been employed at BorgWarner Inc. since 1999. Mr. Lissalde served as President of Borgwarner Turbo Systems Inc and General Manager of Borgwarner Turbo Systems Inc from May 2013 to January 2018 and was its Vice President of BorgWarner Inc. from May 2011 to January 2018. He served as President of Borgwarner Turbo Systems Passenger Car and General Manager of Borgwarner Turbo Systems Passenger Car since May 2011 until May 2013. He has held positions of increasingly significant responsibility during his 19 years with BorgWarner Inc. (the “Company”). He most recently served as President and General Manager of Turbo Systems, the Company’s largest business. Prior to that he served as Vice President and General Manager of BorgWarner Transmissions Systems and Vice President of global sales and marketing of BorgWarner Drivetrain Systems (“BorgWarner Drivetrain”). He also served as managing Director of several operations in Europe for BorgWarner Drivetrain. Mr. Lissalde holds a Masters of Engineering degree in 1990 of the ENSAM - Ecole Nationale Superieure des Arts et Metiers - Paris and also an MBA (ISA 1994) from HEC Paris.

CEO Compensation
  • Frederic's compensation has increased by more than 20% in the past year.
  • Frederic's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the BorgWarner management team in years:

5.6
Average Tenure
50.5
Average Age
  • The average tenure for the BorgWarner management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Frederic Lissalde

TITLE
President
COMPENSATION
$5M
AGE
50
TENURE
0.7 yrs

Tonit Calaway

TITLE
Executive VP
COMPENSATION
$2M
AGE
50
TENURE
0.7 yrs

Joseph Fadool

TITLE
Vice President
COMPENSATION
$3M
AGE
51
TENURE
8.8 yrs

Kevin Nowlan

TITLE
Executive VP & CFO
AGE
46

Tom McGill

TITLE
VP, Controller & Principal Accounting Officer
AGE
51

Hakan Yilmaz

TITLE
Chief Technology Officer

Jamal Farhat

TITLE
Chief Information Officer & VP
AGE
59
TENURE
14.7 yrs

Patrick Nolan

TITLE
Vice President of Investor Relations
TENURE
2.4 yrs

Scott Gallett

TITLE
Vice President of Marketing
AGE
52
TENURE
10.7 yrs

Felecia Pryor

TITLE
Executive VP & Chief Human Resources Officer
AGE
43
Board of Directors Tenure

Average tenure and age of the BorgWarner board of directors in years:

5.6
Average Tenure
62
Average Age
  • The tenure for the BorgWarner board of directors is about average.
Board of Directors

Alexis Michas

TITLE
Non-Executive Chairman & Presiding Director
COMPENSATION
$411K
AGE
60
TENURE
6 yrs

Frederic Lissalde

TITLE
President
COMPENSATION
$5M
AGE
50
TENURE
0.7 yrs

Jan Carlson

TITLE
Director
COMPENSATION
$247K
AGE
58
TENURE
8.8 yrs

Vicki Sato

TITLE
Director
COMPENSATION
$252K
AGE
69
TENURE
5.2 yrs

Michael Hanley

TITLE
Director
COMPENSATION
$257K
AGE
62
TENURE
2.4 yrs

Tom Stallkamp

TITLE
Director
COMPENSATION
$244K
AGE
71
TENURE
13.2 yrs

Dennis Cuneo

TITLE
Director
COMPENSATION
$237K
AGE
69
TENURE
10.2 yrs

Jock McKernan

TITLE
Director
COMPENSATION
$234K
AGE
70
TENURE
9.8 yrs

Roger Krone

TITLE
Director
COMPENSATION
$235K
AGE
61
TENURE
2.2 yrs

Debby McWhinney

TITLE
Director
COMPENSATION
$42K
AGE
62
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • BorgWarner insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Mar 19 Sell Joel Wiegert Individual 07. Mar 19 07. Mar 19 -6,000 $38.74 $-232,447
27. Feb 19 Sell Thomas McGill Individual 26. Feb 19 26. Feb 19 -2,400 $41.97 $-100,720
26. Feb 19 Sell Tonit Calaway Individual 25. Feb 19 25. Feb 19 -12,000 $41.93 $-503,185
19. Dec 18 Buy Deborah McWhinney Individual 19. Dec 18 19. Dec 18 1,421 $35.14 $49,927
27. Nov 18 Sell Alexis Michas Individual 26. Nov 18 26. Nov 18 -10,003 $39.99 $-400,018
07. Nov 18 Buy Deborah McWhinney Individual 01. Nov 18 01. Nov 18 1,215 $41.06 $49,882
02. Nov 18 Sell Joel Wiegert Individual 31. Oct 18 31. Oct 18 -4,000 $39.57 $-158,280
01. Nov 18 Sell Thomas Stallkamp Individual 31. Oct 18 31. Oct 18 -7,692 $39.33 $-302,534
01. Nov 18 Buy Paul Mascarenas Individual 31. Oct 18 31. Oct 18 3,000 $39.53 $118,590
30. Oct 18 Sell Brady Ericson Individual 29. Oct 18 29. Oct 18 -16,780 $39.70 $-666,166
03. Aug 18 Sell Thomas McGill Individual 02. Aug 18 02. Aug 18 -3,260 $44.55 $-145,233
31. Jul 18 Sell Tonit Calaway Individual 30. Jul 18 30. Jul 18 -4,590 $46.01 $-211,176
X
Management checks
We assess BorgWarner's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BorgWarner has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BWA News

Simply Wall St News

Here's How P/E Ratios Can Help Us Understand BorgWarner Inc. (NYSE:BWA)

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how BorgWarner Inc.'s (NYSE:BWA) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Are Insiders Selling BorgWarner Inc. (NYSE:BWA) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … But insiders sold 66.73k shares worth US$2.7m. … All up, insiders sold more shares in BorgWarner than they bought, over the last year.

Simply Wall St -

Those Who Purchased BorgWarner (NYSE:BWA) Shares Five Years Ago Have A 40% Loss To Show For It

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the unfortunate half decade during which the share price slipped, BorgWarner actually saw its earnings per share (EPS) improve by 10% per year. … Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock.

Simply Wall St -

Is BorgWarner Inc. (NYSE:BWA) A Great Dividend Stock?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Let's dig deeper into whether BorgWarner should have a place in your portfolio. … Check out our latest analysis for BorgWarner

Simply Wall St -

What You Must Know About BorgWarner Inc.'s (NYSE:BWA) Financial Strength

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like BorgWarner Inc. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … This article will examine BWA’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth.

Simply Wall St -

BorgWarner Inc. (NYSE:BWA) Delivered A Better ROE Than Its Industry

Our data shows BorgWarner has a return on equity of 23% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

BorgWarner Inc. (NYSE:BWA): What Does The Future Look Like?

Help shape the future of investing tools and you could win a $250 gift card! … the consensus outlook from analysts appear highly confident, … with profits predicted to ramp up by an impressive 70% next year,

Simply Wall St -

Does BorgWarner Inc. (NYSE:BWA) Create Value For Shareholders?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Estimating The Fair Value Of BorgWarner Inc. (NYSE:BWA)

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Does The Data Make BorgWarner Inc. (NYSE:BWA) An Attractive Investment?

(NYSE:BWA) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

BWA Company Info

Description

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. It operates in two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; eBoosters; and timing systems products, including timing chains, variable cam timing crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains, and hybrid power transmission chains. It also provides emissions systems, such as electric air pumps and exhaust gas recirculation (EGR) modules, EGR coolers and valves, glow plugs, and instant starting systems; and thermal systems products comprising viscous fan drives, polymer fans, coolant pumps, cabin heaters, battery heaters, and battery charging and gasoline ignition technologies. The Drivetrain segment develops and manufactures friction and mechanical products that include dual and friction clutch modules, friction and separator plates, transmission bands, torque converter and one-way clutches, and torsional vibration dampers. It also provides electro-hydraulic solenoids, transmission solenoid modules, and dual clutch control modules; rear-wheel drive/all-wheel drive (AWD) transfer case systems, front wheel drive-AWD coupling systems, and cross-axle coupling systems; starters, alternators, and hybrid electric motors; and motor controllers, battery chargers, and uninterrupted power source systems. The company sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. BorgWarner Inc. was founded in 1987 and is headquartered in Auburn Hills, Michigan.

Details
Name: BorgWarner Inc.
BWA
Exchange: NYSE
Founded: 1987
$9,134,817,208
207,609,482
Website: http://www.borgwarner.com
Address: BorgWarner Inc.
3850 Hamlin Road,
Auburn Hills,
Michigan, 48326,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BWA Common Stock New York Stock Exchange US USD 13. Aug 1993
DB BGW Common Stock Deutsche Boerse AG DE EUR 13. Aug 1993
LSE 0HOU Common Stock London Stock Exchange GB USD 13. Aug 1993
Number of employees
Current staff
Staff numbers
30,000
BorgWarner employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 23:33
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.