| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
BWA Stock Overview
BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide.
BorgWarner Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$38.15 |
| 52 Week High | US$55.55 |
| 52 Week Low | US$34.85 |
| Beta | 1.35 |
| 1 Month Change | -1.57% |
| 3 Month Change | -12.42% |
| 1 Year Change | -24.47% |
| 3 Year Change | 7.04% |
| 5 Year Change | -6.93% |
| Change since IPO | 1,120.80% |
Recent News & Updates
BorgWarner: A Stock Worth Buying Amidst The Automotive Transition
BorgWarner Inc. is a crucial player in the automotive market, providing crucial engine products and solutions, for combustion, hybrid, and electric vehicles. The automotive industry is one that is highly impacted by inflation, however, BWA’s elasticity and energy-efficient products make it a prime investment option during economic uncertainty. The company’s financial figures indicate high growth, following its covid-related dip in 2020, which is also anticipated to rise owing to a number of crucial acquisitions. On the basis of several valuation metrics such as fair value, PE ratio, PEG ratio, PS ratio, and its Price-to-Book ratio, BWA is potentially undervalued by a substantial degree.
BorgWarner (NYSE:BWA) Has Re-Affirmed Its Dividend Of US$0.17
BorgWarner Inc. ( NYSE:BWA ) has announced that it will pay a dividend of US$0.17 per share on the 15th of June. The...
Shareholder Returns
| BWA | US Auto Components | US Market | |
|---|---|---|---|
| 7D | -0.7% | 4.9% | 0.1% |
| 1Y | -24.5% | -32.4% | -12.7% |
Return vs Industry: BWA exceeded the US Auto Components industry which returned -32.4% over the past year.
Return vs Market: BWA underperformed the US Market which returned -12.7% over the past year.
Price Volatility
| BWA volatility | |
|---|---|
| BWA Average Weekly Movement | 6.0% |
| Auto Components Industry Average Movement | 8.8% |
| Market Average Movement | 8.0% |
| 10% most volatile stocks in US Market | 17.0% |
| 10% least volatile stocks in US Market | 3.0% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1987 | 49,300 | Fred Lissalde | https://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
| BWA fundamental statistics | |
|---|---|
| Market Cap | US$9.14b |
| Earnings (TTM) | US$672.00m |
| Revenue (TTM) | US$14.70b |
13.6x
P/E Ratio0.6x
P/S RatioIs BWA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BWA income statement (TTM) | |
|---|---|
| Revenue | US$14.70b |
| Cost of Revenue | US$11.92b |
| Gross Profit | US$2.79b |
| Other Expenses | US$2.12b |
| Earnings | US$672.00m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.80 |
| Gross Margin | 18.96% |
| Net Profit Margin | 4.57% |
| Debt/Equity Ratio | 58.4% |
How did BWA perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield24%
Payout RatioDoes BWA pay a reliable dividends?
See BWA dividend history and benchmarks| BorgWarner dividend dates | |
|---|---|
| Ex Dividend Date | May 31 2022 |
| Dividend Pay Date | Jun 15 2022 |
| Days until Ex dividend | 10 days |
| Days until Dividend pay date | 25 days |
Does BWA pay a reliable dividends?
See BWA dividend history and benchmarksValuation
Is BorgWarner undervalued compared to its fair value and its price relative to the market?
Valuation Score
6/6Valuation Score 6/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BWA ($38.15) is trading below our estimate of fair value ($114.26)
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 (13.6x) compared to the US Auto Components industry average (14.8x).
PE vs Market: BWA is good value based on its PE Ratio (13.6x) compared to the US market (15.5x).
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 (1.3x) compared to the US Auto Components industry average (1.7x).
Future Growth
How is BorgWarner forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
15.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BWA's forecast earnings growth (15.9% per year) is above the savings rate (1.9%).
Earnings vs Market: BWA's earnings (15.9% per year) are forecast to grow faster than the US market (12.5% per year).
High Growth Earnings: BWA's earnings are forecast to grow, but not significantly.
Revenue vs Market: BWA's revenue (8.9% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: BWA's revenue (8.9% 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 (14.4%).
Past Performance
How has BorgWarner performed over the past 5 years?
Past Performance Score
4/6Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
10.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BWA has a large one-off loss of $375.0M impacting its March 31 2022 financial results.
Growing Profit Margin: BWA's current net profit margins (4.6%) are higher than last year (3.7%).
Past Earnings Growth Analysis
Earnings Trend: BWA's earnings have grown by 10.6% per year over the past 5 years.
Accelerating Growth: BWA's earnings growth over the past year (54.1%) exceeds its 5-year average (10.6% per year).
Earnings vs Industry: BWA earnings growth over the past year (54.1%) exceeded the Auto Components industry 24.5%.
Return on Equity
High ROE: BWA's Return on Equity (10.5%) is considered low.
Financial Health
How is BorgWarner's financial position?
Financial Health Score
6/6Financial 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 ($6.6B) exceed its short term liabilities ($3.9B).
Long Term Liabilities: BWA's short term assets ($6.6B) exceed its long term liabilities ($5.5B).
Debt to Equity History and Analysis
Debt Level: BWA's net debt to equity ratio (38%) is considered satisfactory.
Reducing Debt: BWA's debt to equity ratio has reduced from 65.9% to 58.4% over the past 5 years.
Debt Coverage: BWA's debt is well covered by operating cash flow (25.2%).
Interest Coverage: BWA's interest payments on its debt are well covered by EBIT (19.6x coverage).
Balance Sheet
Dividend
What is BorgWarner current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.78%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BWA's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: BWA's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (4.09%).
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 low payout ratio (24.1%), BWA's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (37.7%), 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?
3.3yrs
Average management tenure
CEO
Fred Lissalde (54 yo)
3.75yrs
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 ($USD8.23M).
Compensation vs Earnings: Fred's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: BWA's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: BWA's board of directors are considered experienced (3.8 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$9.140b
- Shares outstanding: 239.57m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/21 00:00 |
| End of Day Share Price | 2022/05/20 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.