BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. More Details
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Excellent balance sheet and good value.
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 +/- 4% a week.
Volatility Over Time: BWA's weekly volatility (4%) has been stable over the past year.
7 Day Return
US Auto Components
1 Year Return
US Auto Components
Return vs Industry: BWA underperformed the US Auto Components industry which returned 60.5% over the past year.
Return vs Market: BWA underperformed the US Market which returned 35.1% over the past year.
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
1 week ago | Simply Wall StIs There An Opportunity With BorgWarner Inc.'s (NYSE:BWA) 34% Undervaluation?
3 weeks ago | Simply Wall StDeclining Stock and Decent Financials: Is The Market Wrong About BorgWarner Inc. (NYSE:BWA)?
1 month ago | Simply Wall StIs It Too Late To Consider Buying BorgWarner Inc. (NYSE:BWA)?
Is BorgWarner undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BWA ($46.47) is trading below our estimate of fair value ($71.94)
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 (23.6x) compared to the US Auto Components industry average (26.4x).
PE vs Market: BWA is poor value based on its PE Ratio (23.6x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: BWA is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: BWA is good value based on its PB Ratio (1.8x) compared to the US Auto Components industry average (2.5x).
How is BorgWarner forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BWA's forecast earnings growth (19.3% per year) is above the savings rate (2%).
Earnings vs Market: BWA's earnings (19.3% per year) are forecast to grow faster than the US market (15.1% per year).
High Growth Earnings: BWA's earnings are forecast to grow, but not significantly.
Revenue vs Market: BWA's revenue (7.3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: BWA's revenue (7.3% 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 (15.6%).
How has BorgWarner performed over the past 5 years?
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 (41.8%).
Return on Equity
High ROE: BWA's Return on Equity (7.9%) is considered low.
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 ($5.4B).
Debt to Equity History and Analysis
Debt Level: BWA's debt to equity ratio (56.5%) is considered high.
Reducing Debt: BWA's debt to equity ratio has reduced from 69.1% to 56.5% over the past 5 years.
Debt Coverage: BWA's debt is well covered by operating cash flow (33.6%).
Interest Coverage: BWA's interest payments on its debt are well covered by EBIT (17.2x coverage).
What is BorgWarner current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BWA's dividend (1.46%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: BWA's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (3.52%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, BWA has been paying a dividend for less than 10 years.
Growing Dividend: BWA's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.5%), BWA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BWA's dividends in 3 years are forecast to be thoroughly covered by earnings (13% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Fred Lissalde (54 yo)
Mr. Frederic B. Lissalde, also known as Fred, has been an Independent Director of Autoliv, Inc. since December 8, 2020. Mr. Lissalde has been President, Chief Executive Officer and Director of BorgWarner I...
CEO Compensation Analysis
Compensation vs Market: Fred's total compensation ($USD9.85M) is about average for companies of similar size in the US market ($USD11.26M).
Compensation vs Earnings: Fred's compensation has been consistent with company performance over the past year.
Experienced Management: BWA's management team is considered experienced (2.5 years average tenure).
Experienced Board: BWA's board of directors are considered experienced (3 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.7%.
BorgWarner Inc.'s company bio, employee growth, exchange listings and data sources
- Name: BorgWarner Inc.
- Ticker: BWA
- Exchange: NYSE
- Founded: 1987
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: US$11.146b
- Shares outstanding: 239.85m
- Website: https://www.borgwarner.com
Number of Employees
- BorgWarner Inc.
- 3850 Hamlin Road
- Auburn Hills
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/23 02:02|
|End of Day Share Price||2021/07/22 00:00|
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.