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BWA

BorgWarner NYSE:BWA Stock Report

Last Price

US$38.43

Market Cap

US$9.1b

7D

-0.6%

1Y

-15.7%

Updated

08 Aug, 2022

Data

Company Financials +
BWA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance1/6
Financial Health6/6
Dividends3/6

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$38.43
52 Week HighUS$50.09
52 Week LowUS$32.28
Beta1.39
1 Month Change11.55%
3 Month Change5.87%
1 Year Change-15.69%
3 Year Change16.38%
5 Year Change-14.92%
Change since IPO1,129.76%

Recent News & Updates

Aug 01
BorgWarner (NYSE:BWA) Will Pay A Dividend Of $0.17

BorgWarner (NYSE:BWA) Will Pay A Dividend Of $0.17

The board of BorgWarner Inc. ( NYSE:BWA ) has announced that it will pay a dividend on the 15th of September, with...

Jul 29

BorgWarner declares $0.17 dividend

BorgWarner (NYSE:BWA) declares $0.17/share quarterly dividend, in line with previous. Forward yield 1.77% Payable Sept. 15; for shareholders of record Sept. 1; ex-div Aug. 31. See BWA Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

BWAUS Auto ComponentsUS Market
7D-0.6%0.6%1.1%
1Y-15.7%-29.2%-13.0%

Return vs Industry: BWA exceeded the US Auto Components industry which returned -30.7% over the past year.

Return vs Market: BWA underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is BWA's price volatile compared to industry and market?
BWA volatility
BWA Average Weekly Movement5.9%
Auto Components Industry Average Movement8.2%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: BWA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BWA's weekly volatility (6%) has been stable 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$9.10b
Earnings (TTM)US$641.00m
Revenue (TTM)US$14.70b

14.2x

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$11.97b
Gross ProfitUS$2.74b
Other ExpensesUS$2.10b
EarningsUS$641.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.71
Gross Margin18.61%
Net Profit Margin4.36%
Debt/Equity Ratio58.8%

How did BWA perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

25%

Payout Ratio

Does BWA pay a reliable dividends?

See BWA dividend history and benchmarks
When do you need to buy BWA by to receive an upcoming dividend?
BorgWarner dividend dates
Ex Dividend DateAug 31 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend22 days
Days until Dividend pay date37 days

Does BWA pay a reliable dividends?

See BWA dividend history and benchmarks
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/EBITDA6.1x
PEG Ratio0.9x

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 Average36x
LEA Lear
77.6x43.0%US$8.8b
ALV Autoliv
21.1x32.2%US$7.1b
GNTX Gentex
20.7x24.6%US$6.5b
FOXF Fox Factory Holding
24.7x16.7%US$4.5b
BWA BorgWarner
14.2x16.6%US$9.1b

Price-To-Earnings vs Peers: BWA is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (36x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: BWA is good value based on its Price-To-Earnings Ratio (14.2x) compared to the US Auto Components industry average (17.2x)


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 Ratio14.2x
Fair PE Ratio14.1x

Price-To-Earnings vs Fair Ratio: BWA is expensive based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).


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 ($38.43) is trading below our estimate of fair value ($152.65)

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: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is BorgWarner forecast to perform in the next 1 to 3 years based on estimates from 19 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


16.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWA's forecast earnings growth (16.6% per year) is above the savings rate (1.9%).

Earnings vs Market: BWA's earnings (16.6% per year) are forecast to grow faster than the US market (12.8% 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 US market (8% 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 (15%).


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Past Performance

How has BorgWarner performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BWA has a large one-off loss of $310.0M impacting its June 30 2022 financial results.

Growing Profit Margin: BWA's current net profit margins (4.4%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: BWA's earnings have grown by 6.7% 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 (-17.9%) over the past year, making it difficult to compare to the Auto Components industry average (4.8%).


Return on Equity

High ROE: BWA's Return on Equity (10.1%) is considered low.


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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 ($6.5B) exceed its short term liabilities ($3.7B).

Long Term Liabilities: BWA's short term assets ($6.5B) exceed its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: BWA's net debt to equity ratio (39.4%) is considered satisfactory.

Reducing Debt: BWA's debt to equity ratio has reduced from 60.1% to 58.8% over the past 5 years.

Debt Coverage: BWA's debt is well covered by operating cash flow (24.1%).

Interest Coverage: BWA's interest payments on its debt are well covered by EBIT (27.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.77%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 09 2022Ex Dividend DateAug 31 2022Dividend Pay DateSep 15 202215 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BWA's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: BWA's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (4.1%).


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 reasonably low payout ratio (25.2%), BWA's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (44.6%), 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?

3.6yrs

Average management tenure


CEO

Fred Lissalde (55 yo)

4yrs

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 ($USD17.59M) is above average for companies of similar size in the US market ($USD8.35M).

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


Leadership Team

Experienced Management: BWA's management team is considered experienced (3.6 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: NYSE
  • Founded: 1987
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: US$9.101b
  • Shares outstanding: 236.83m
  • 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 Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2022/06/30
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.