BorgWarner
Market Cap
US$10.8b
Last Updated
2021/02/28 00:27 UTC
Data Sources
Company Financials +
Executive Summary
BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. More Details
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Very undervalued with excellent balance sheet.
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
3.3%
BWA
-3.4%
US Auto Components
-3.6%
US Market
1 Year Return
42.4%
BWA
67.5%
US Auto Components
36.4%
US Market
Return vs Industry: BWA underperformed the US Auto Components industry which returned 67.4% over the past year.
Return vs Market: BWA exceeded the US Market which returned 38.5% over the past year.
Shareholder returns
| BWA | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | -3.4% | -3.6% |
| 30 Day | 6.1% | 8.8% | 0.9% |
| 90 Day | 13.9% | 21.3% | 6.7% |
| 1 Year | 44.9%42.4% | 68.3%67.5% | 39.4%36.4% |
| 3 Year | -1.2%-6.3% | 23.5%15.0% | 53.4%43.5% |
| 5 Year | 39.4%28.6% | 77.5%53.6% | 117.3%93.0% |
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 St
Only Four Days Left To Cash In On BorgWarner's (NYSE:BWA) Dividend1 week ago | Simply Wall St
Here's What To Make Of BorgWarner's (NYSE:BWA) Returns On Capital2 weeks ago | Simply Wall St
BorgWarner (NYSE:BWA) Seems To Use Debt Quite SensiblyValuation
Is BorgWarner undervalued compared to its fair value and its price relative to the market?
40.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BWA ($45) is trading below our estimate of fair value ($76.05)
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 (19.2x) compared to the US Auto Components industry average (29.6x).
PE vs Market: BWA is good value based on its PE Ratio (19.2x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: BWA is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: BWA is good value based on its PB Ratio (1.7x) compared to the US Auto Components industry average (2.3x).
Next Steps
Future Growth
How is BorgWarner forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
22.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BWA's forecast earnings growth (22.4% per year) is above the savings rate (2%).
Earnings vs Market: BWA's earnings (22.4% per year) are forecast to grow faster than the US market (20.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BWA's revenue (12.5% per year) is forecast to grow faster than the US market (10.4% per year).
High Growth Revenue: BWA's revenue (12.5% 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 (14.9%).
Next Steps
Past Performance
How has BorgWarner performed over the past 5 years?
5.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BWA has high quality earnings.
Growing Profit Margin: BWA's current net profit margins (4.9%) are lower than last year (7.3%).
Past Earnings Growth Analysis
Earnings Trend: BWA's earnings have grown by 5.4% 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 (-32.9%) over the past year, making it difficult to compare to the Auto Components industry average (8.4%).
Return on Equity
High ROE: BWA's Return on Equity (8.4%) is considered low.
Next Steps
Financial Health
How is BorgWarner's financial position?
Financial Position Analysis
Short Term Liabilities: BWA's short term assets ($6.2B) exceed its short term liabilities ($3.8B).
Long Term Liabilities: BWA's short term assets ($6.2B) exceed its long term liabilities ($5.5B).
Debt to Equity History and Analysis
Debt Level: BWA's debt to equity ratio (56.3%) is considered high.
Reducing Debt: BWA's debt to equity ratio has reduced from 70.3% to 56.3% over the past 5 years.
Debt Coverage: BWA's debt is well covered by operating cash flow (31.3%).
Interest Coverage: BWA's interest payments on its debt are well covered by EBIT (15.9x coverage).
Balance Sheet
Next Steps
Dividend
What is BorgWarner current dividend yield, its reliability and sustainability?
1.51%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BWA's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: BWA's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.76%).
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 (29%), 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 (14.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Fred Lissalde (53 yo)
2.5yrs
Tenure
US$13,947,029
Compensation
Mr. Frederic B. Lissalde, also known as Fred, has been an Independent Director of Autoliv, Inc. since December 8, 2020. Mr. Lissalde has been President, Chief Executive Officer and Director of BorgWarner I...
CEO Compensation Analysis
Compensation vs Market: Fred's total compensation ($USD13.95M) is above average for companies of similar size in the US market ($USD10.54M).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.5yrs | US$13.95m | 0.028% $ 3.1m | |
| Executive VP & CFO | 1.83yrs | US$5.95m | 0.040% $ 4.3m | |
| Executive VP | 0.33yr | US$3.20m | 0.018% $ 2.0m | |
| VP and President | 2.08yrs | US$3.61m | 0.050% $ 5.4m | |
| VP and President & GM of PowerDrive Systems | 6.08yrs | US$3.23m | 0.049% $ 5.2m | |
| VP, Controller & Principal Accounting Officer | no data | no data | 0.0040% $ 427.0k | |
| VP & Chief Technology Officer | 3.08yrs | no data | 0.0036% $ 389.4k | |
| Vice President of Investor Relations | 4.25yrs | no data | no data | |
| Executive VP & Chief Human Resources Officer | 1.83yrs | no data | 0.0065% $ 698.1k | |
| VP and President & GM of Morse Systems | 2.08yrs | US$3.16m | 0.026% $ 2.8m | |
| VP and President & GM of Drivetrain Systems | no data | no data | 0.0043% $ 461.4k | |
| VP & Chief Strategy Officer | 0.33yr | no data | 0.010% $ 1.1m |
2.1yrs
Average Tenure
49yo
Average Age
Experienced Management: BWA's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.5yrs | US$13.95m | 0.028% $ 3.1m | |
| Independent Non-Executive Chairman | 7.83yrs | US$410.90k | 0.035% $ 3.7m | |
| Director | 0.33yr | no data | 0.0024% $ 262.4k | |
| Independent Director | 7yrs | US$264.00k | 0.0083% $ 891.7k | |
| Independent Director | 11.58yrs | US$246.00k | 0.015% $ 1.6m | |
| Independent Director | 2.58yrs | US$249.00k | 0.0042% $ 453.9k | |
| Independent Director | 2.58yrs | US$247.50k | 0.0044% $ 470.0k | |
| Independent Director | 12yrs | US$256.50k | 0.014% $ 1.5m | |
| Director | 0.50yr | no data | no data | |
| Director | 0.33yr | no data | no data | |
| Independent Director | 4.25yrs | US$268.50k | 0.0054% $ 579.7k |
2.6yrs
Average Tenure
64yo
Average Age
Experienced Board: BWA's board of directors are not considered experienced ( 2.6 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 15.8%.
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$10.756b
- Shares outstanding: 239.02m
- Website: https://www.borgwarner.com
Number of Employees
Location
- BorgWarner Inc.
- 3850 Hamlin Road
- Auburn Hills
- Michigan
- 48326
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BWA | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Aug 1993 |
| BGW | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 1993 |
| 0HOU | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Aug 1993 |
| BWA * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Aug 1993 |
| B1WA34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/28 00:27 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.