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BWA

BorgWarner NYSE:BWA Stock Report

Last Price

US$31.40

Market Cap

US$7.4b

7D

-4.8%

1Y

-28.4%

Updated

30 Sep, 2022

Data

Company Financials +
BWA fundamental analysis
Snowflake Score
Valuation5/6
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$31.40
52 Week HighUS$50.09
52 Week LowUS$31.14
Beta1.38
1 Month Change-16.71%
3 Month Change-7.84%
1 Year Change-28.36%
3 Year Change-10.67%
5 Year Change-39.46%
Change since IPO904.80%

Recent News & Updates

Sep 20

BorgWarner to acquire charging business of Hubei Surpass Sun Electric for RMB410M

BorgWarner (NYSE:BWA) has agreed to acquire the Electric Vehicle Solution, Smart Grid and Smart Energy businesses of Hubei Surpass Sun Electric at an enterprise value of up to RMB410M. Approximately RMB267M would be delivered at or soon after closing and up to RMB143M in the form of contingent payments over approximately two years following the closing. The transaction is expected to close in 1Q23. The acquisition will complement company's existing capabilities in Europe and North America. SSE's 2022 revenues for the electrification business are expected to be approximately RMB180M. "This transaction makes good business sense as we continue to bolster our fast-charging capabilities globally," said Frédéric Lissalde, President and CEO of BorgWarner. "SSE will bring enhanced offerings while supporting Charging Forward, our strategy to accelerate our growth in electrification. We look forward to welcoming their talented team to BorgWarner."

Aug 15
BorgWarner's (NYSE:BWA) Dividend Will Be $0.17

BorgWarner's (NYSE:BWA) Dividend Will Be $0.17

BorgWarner Inc. ( NYSE:BWA ) has announced that it will pay a dividend of $0.17 per share on the 15th of September...

Shareholder Returns

BWAUS Auto ComponentsUS Market
7D-4.8%-4.2%-2.5%
1Y-28.4%-40.6%-23.2%

Return vs Industry: BWA exceeded the US Auto Components industry which returned -38.5% over the past year.

Return vs Market: BWA underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is BWA's price volatile compared to industry and market?
BWA volatility
BWA Average Weekly Movement5.3%
Auto Components Industry Average Movement7.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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.

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$7.44b
Earnings (TTM)US$641.00m
Revenue (TTM)US$14.70b

11.6x

P/E Ratio

0.5x

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

Oct 27, 2022

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

2.2%

Current Dividend Yield

25%

Payout Ratio
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

5/6

Valuation Score 5/6

  • 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/Revenue0.7x
Enterprise Value/EBITDA5.3x
PEG Ratio0.7x

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 Average29.1x
LEA Lear
62.9x34.0%US$7.1b
ALV Autoliv
17.3x26.3%US$5.8b
GNTX Gentex
17.8x17.1%US$5.6b
FOXF Fox Factory Holding
18.3x16.6%US$3.3b
BWA BorgWarner
11.6x16.3%US$7.4b

Price-To-Earnings vs Peers: BWA is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (29.1x).


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 (11.6x) compared to the US Auto Components industry average (17.7x)


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 Ratio11.6x
Fair PE Ratio14.2x

Price-To-Earnings vs Fair Ratio: BWA is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).


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 ($31.4) is trading below our estimate of fair value ($151.15)

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


16.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWA's forecast earnings growth (16.3% per year) is above the savings rate (1.9%).

Earnings vs Market: BWA's earnings (16.3% per year) are forecast to grow faster than the US market (14.7% 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 (7.6% 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 (-17.5%).


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


2.17%

Current Dividend Yield

Dividend Yield vs Market

BorgWarner Dividend Yield vs Market
How does BorgWarner dividend yield compare to the market?
SegmentDividend Yield
Company (BorgWarner)2.2%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Auto Components)2.8%
Analyst forecast in 3 Years (BorgWarner)2.3%

Notable Dividend: BWA's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: BWA's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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?

3.7yrs

Average management tenure


CEO

Fred Lissalde (55 yo)

4.08yrs

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

Fred Lissalde's Compensation vs BorgWarner Earnings
How has Fred Lissalde's remuneration changed compared to BorgWarner's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$641m

Mar 31 2022n/an/a

US$672m

Dec 31 2021US$18mUS$1m

US$537m

Sep 30 2021n/an/a

US$766m

Jun 30 2021n/an/a

US$781m

Mar 31 2021n/an/a

US$436m

Dec 31 2020US$10mUS$1m

US$500m

Sep 30 2020n/an/a

US$362m

Jun 30 2020n/an/a

US$445m

Mar 31 2020n/an/a

US$715m

Dec 31 2019US$14mUS$1m

US$746m

Sep 30 2019n/an/a

US$756m

Jun 30 2019n/an/a

US$766m

Mar 31 2019n/an/a

US$866m

Dec 31 2018US$5mUS$946k

US$931m

Sep 30 2018n/an/a

US$555m

Jun 30 2018n/an/a

US$536m

Mar 31 2018n/an/a

US$476m

Dec 31 2017US$3mUS$673k

US$440m

Sep 30 2017n/an/a

US$293m

Jun 30 2017n/an/a

US$191m

Mar 31 2017n/an/a

US$144m

Dec 31 2016US$3mUS$607k

US$595m

Sep 30 2016n/an/a

US$537m

Jun 30 2016n/an/a

US$611m

Mar 31 2016n/an/a

US$595m

Dec 31 2015US$5mUS$577k

US$610m

Compensation vs Market: Fred's total compensation ($USD17.59M) is above average for companies of similar size in the US market ($USD8.64M).

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 (3.7 years average tenure).


Board Members

Experienced Board: BWA's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:BWA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Jun 22SellUS$706,474Tonit CalawayIndividual17,543US$40.27
17 May 22SellUS$155,016Tonit CalawayIndividual4,000US$38.75
09 Mar 22SellUS$250,489Felecia PryorIndividual6,590US$38.01
16 Nov 21SellUS$147,000Stefan DemmerleIndividual3,000US$49.00
05 Nov 21SellUS$281,717Stefan DemmerleIndividual6,000US$46.95

Ownership Breakdown

What is the ownership structure of BWA?
Owner TypeNumber of SharesOwnership Percentage
State or Government101,0110.04%
Private Companies1,257,6660.5%
Individual Insiders1,422,2580.6%
General Public9,975,0844.2%
Institutions224,075,19494.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 62.26% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.18%
The Vanguard Group, Inc.
26,474,514$831.3m1.31%0.02%
8.37%
BlackRock, Inc.
19,817,637$622.3m-7.96%0.02%
4.92%
Harris Associates L.P.
11,648,608$365.8m15.68%0.52%
4.12%
State Street Global Advisors, Inc.
9,764,701$306.6m-3.69%0.02%
4.12%
Victory Capital Management Inc.
9,752,177$306.2m-3.53%0.37%
2.95%
Diamond Hill Capital Management, Inc.
6,991,429$219.5m2.3%1.08%
2.81%
Dimensional Fund Advisors LP
6,644,734$208.6m2.31%0.06%
2.67%
American Century Investment Management Inc
6,324,609$198.6m5.91%0.16%
2.04%
Geode Capital Management, LLC
4,829,974$151.7m0.97%0.02%
1.89%
Macquarie Investment Management Business Trust
4,466,304$140.2m2.8%0.17%
1.74%
FMR LLC
4,117,619$129.3m-20.91%0.01%
1.73%
Black Creek Investment Management Inc.
4,088,970$128.4m-13.85%2.2%
1.62%
LSV Asset Management
3,830,039$120.3m-1.19%0.27%
1.24%
Turtle Creek Asset Management Inc.
2,932,424$92.1m-0.92%3.64%
1.23%
Invesco Capital Management LLC
2,912,071$91.4m-4.17%0.08%
1.16%
Northern Trust Global Investments
2,738,127$86.0m-2.14%0.02%
1.06%
Grantham Mayo Van Otterloo & Co. LLC
2,515,183$79.0m9.57%0.3%
1.01%
Amundi Asset Management
2,389,895$75.0m-13.67%0.02%
0.99%
Norges Bank Investment Management
2,342,903$73.6m0%0.01%
0.98%
Silvercrest Asset Management Group LLC
2,314,511$72.7m-2.12%0.61%
0.93%
Bank of America Corporation, Asset Management Arm
2,195,221$68.9m19.22%0.03%
0.92%
BNY Mellon Asset Management
2,187,300$68.7m4.38%0.02%
0.89%
Great Lakes Advisors, LLC
2,118,232$66.5m1.14%1.48%
0.87%
EARNEST Partners, LLC
2,070,606$65.0m26.37%0.46%
0.83%
Charles Schwab Investment Management, Inc.
1,972,399$61.9m1.83%0.02%

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$7.437b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWANYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1993
BGWDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1993
0HOULSE (London Stock Exchange)YesCommon StockGBUSDAug 1993
BWA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1993
B1WA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 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.