BORGWARNER INC (BWA) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:BWA • US0997241064

52.23 USD
+1.87 (+3.71%)
At close: Feb 6, 2026
51.5 USD
-0.73 (-1.4%)
After Hours: 2/6/2026, 8:20:52 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall BWA gets a fundamental rating of 6 out of 10. We evaluated BWA against 42 industry peers in the Automobile Components industry. Both the profitability and the financial health of BWA get a neutral evaluation. Nothing too spectacular is happening here. BWA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make BWA a good candidate for value investing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • BWA had positive earnings in the past year.
  • BWA had a positive operating cash flow in the past year.
  • In the past 5 years BWA has always been profitable.
  • BWA had a positive operating cash flow in each of the past 5 years.
BWA Yearly Net Income VS EBIT VS OCF VS FCFBWA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.92%, BWA is in line with its industry, outperforming 54.76% of the companies in the same industry.
  • BWA has a Return On Equity of 2.24%. This is comparable to the rest of the industry: BWA outperforms 57.14% of its industry peers.
  • BWA has a better Return On Invested Capital (9.21%) than 85.71% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for BWA is in line with the industry average of 8.99%.
  • The 3 year average ROIC (8.99%) for BWA is below the current ROIC(9.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.92%
ROE 2.24%
ROIC 9.21%
ROA(3y)4.1%
ROA(5y)3.73%
ROE(3y)9.97%
ROE(5y)9.08%
ROIC(3y)8.99%
ROIC(5y)8.17%
BWA Yearly ROA, ROE, ROICBWA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

  • BWA has a Profit Margin (0.94%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of BWA has declined.
  • With an excellent Operating Margin value of 9.59%, BWA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • BWA's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 18.78%, BWA is in line with its industry, outperforming 45.24% of the companies in the same industry.
  • BWA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.59%
PM (TTM) 0.94%
GM 18.78%
OM growth 3Y-0.75%
OM growth 5Y-5.01%
PM growth 3Y-12.8%
PM growth 5Y-20.03%
GM growth 3Y-0.77%
GM growth 5Y-1.87%
BWA Yearly Profit, Operating, Gross MarginsBWA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BWA is creating some value.
  • The number of shares outstanding for BWA has been reduced compared to 1 year ago.
  • The number of shares outstanding for BWA has been increased compared to 5 years ago.
  • The debt/assets ratio for BWA is higher compared to a year ago.
BWA Yearly Shares OutstandingBWA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
BWA Yearly Total Debt VS Total AssetsBWA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 3.04 indicates that BWA is not in any danger for bankruptcy at the moment.
  • BWA has a better Altman-Z score (3.04) than 64.29% of its industry peers.
  • BWA has a debt to FCF ratio of 3.15. This is a good value and a sign of high solvency as BWA would need 3.15 years to pay back of all of its debts.
  • BWA has a better Debt to FCF ratio (3.15) than 76.19% of its industry peers.
  • BWA has a Debt/Equity ratio of 0.65. This is a neutral value indicating BWA is somewhat dependend on debt financing.
  • BWA's Debt to Equity ratio of 0.65 is in line compared to the rest of the industry. BWA outperforms 47.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 3.15
Altman-Z 3.04
ROIC/WACC1.08
WACC8.51%
BWA Yearly LT Debt VS Equity VS FCFBWA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 2.05 indicates that BWA has no problem at all paying its short term obligations.
  • BWA has a Current ratio of 2.05. This is in the better half of the industry: BWA outperforms 61.90% of its industry peers.
  • BWA has a Quick Ratio of 1.69. This is a normal value and indicates that BWA is financially healthy and should not expect problems in meeting its short term obligations.
  • BWA has a Quick ratio of 1.69. This is in the better half of the industry: BWA outperforms 76.19% of its industry peers.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 1.69
BWA Yearly Current Assets VS Current LiabilitesBWA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 8.55% over the past year.
  • BWA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.90% yearly.
  • BWA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
  • BWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.74% yearly.
EPS 1Y (TTM)8.55%
EPS 3Y1.35%
EPS 5Y0.9%
EPS Q2Q%13.76%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%

3.2 Future

  • Based on estimates for the next years, BWA will show a small growth in Earnings Per Share. The EPS will grow by 6.15% on average per year.
  • The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y10.93%
EPS Next 2Y10.01%
EPS Next 3Y10.02%
EPS Next 5Y6.15%
Revenue Next Year0.98%
Revenue Next 2Y2.05%
Revenue Next 3Y2.22%
Revenue Next 5Y3.1%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
BWA Yearly Revenue VS EstimatesBWA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
BWA Yearly EPS VS EstimatesBWA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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8

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.43 indicates a reasonable valuation of BWA.
  • Based on the Price/Earnings ratio, BWA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.93. BWA is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 9.99, the valuation of BWA can be described as very reasonable.
  • 78.57% of the companies in the same industry are more expensive than BWA, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.77. BWA is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.43
Fwd PE 9.99
BWA Price Earnings VS Forward Price EarningsBWA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, BWA is valued cheaper than 83.33% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, BWA is valued cheaper than 88.10% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.01
EV/EBITDA 6.17
BWA Per share dataBWA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • BWA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.05
PEG (5Y)12.65
EPS Next 2Y10.01%
EPS Next 3Y10.02%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.35%, BWA has a reasonable but not impressive dividend return.
  • BWA's Dividend Yield is rather good when compared to the industry average which is at 0.60. BWA pays more dividend than 80.95% of the companies in the same industry.
  • BWA's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.35%

5.2 History

  • The dividend of BWA decreases each year by -8.36%.
  • BWA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.36%
Div Incr Years0
Div Non Decr Years0
BWA Yearly Dividends per shareBWA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

  • 80.60% of the earnings are spent on dividend by BWA. This is not a sustainable payout ratio.
DP80.6%
EPS Next 2Y10.01%
EPS Next 3Y10.02%
BWA Yearly Income VS Free CF VS DividendBWA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
BWA Dividend Payout.BWA Dividend Payout, showing the Payout Ratio.BWA Dividend Payout.PayoutRetained Earnings

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BORGWARNER INC

NYSE:BWA (2/6/2026, 8:20:52 PM)

After market: 51.5 -0.73 (-1.4%)

52.23

+1.87 (+3.71%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)10-30
Earnings (Next)02-11
Inst Owners104.12%
Inst Owner Change-2.82%
Ins Owners1.03%
Ins Owner Change7.7%
Market Cap11.17B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts73
Price Target49.71 (-4.82%)
Short Float %5.49%
Short Ratio3.92
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
Yearly Dividend0.44
Dividend Growth(5Y)-8.36%
DP80.6%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.19%
Min EPS beat(2)5.8%
Max EPS beat(2)10.59%
EPS beat(4)4
Avg EPS beat(4)8.4%
Min EPS beat(4)4.66%
Max EPS beat(4)12.56%
EPS beat(8)7
Avg EPS beat(8)9.81%
EPS beat(12)10
Avg EPS beat(12)9.9%
EPS beat(16)14
Avg EPS beat(16)13.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-1.19%
Revenue beat(12)4
Avg Revenue beat(12)0.18%
Revenue beat(16)6
Avg Revenue beat(16)-3.15%
PT rev (1m)-0.19%
PT rev (3m)5.86%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)4.06%
EPS NY rev (1m)0.5%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 11.43
Fwd PE 9.99
P/S 0.79
P/FCF 9.01
P/OCF 6.54
P/B 1.87
P/tB 3.58
EV/EBITDA 6.17
EPS(TTM)4.57
EY8.75%
EPS(NY)5.23
Fwd EY10.01%
FCF(TTM)5.8
FCFY11.1%
OCF(TTM)7.98
OCFY15.29%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)1.05
PEG (5Y)12.65
Graham Number53.65
Profitability
Industry RankSector Rank
ROA 0.92%
ROE 2.24%
ROCE 12.26%
ROIC 9.21%
ROICexc 11.45%
ROICexgc 16.88%
OM 9.59%
PM (TTM) 0.94%
GM 18.78%
FCFM 8.74%
ROA(3y)4.1%
ROA(5y)3.73%
ROE(3y)9.97%
ROE(5y)9.08%
ROIC(3y)8.99%
ROIC(5y)8.17%
ROICexc(3y)11.03%
ROICexc(5y)10.47%
ROICexgc(3y)18.11%
ROICexgc(5y)17.92%
ROCE(3y)12.03%
ROCE(5y)10.93%
ROICexgc growth 3Y-6.79%
ROICexgc growth 5Y-7.32%
ROICexc growth 3Y0.73%
ROICexc growth 5Y-5.84%
OM growth 3Y-0.75%
OM growth 5Y-5.01%
PM growth 3Y-12.8%
PM growth 5Y-20.03%
GM growth 3Y-0.77%
GM growth 5Y-1.87%
F-Score8
Asset Turnover0.98
Health
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 3.15
Debt/EBITDA 1.86
Cap/Depr 64.02%
Cap/Sales 3.3%
Interest Coverage 9.51
Cash Conversion 81.68%
Profit Quality 925.37%
Current Ratio 2.05
Quick Ratio 1.69
Altman-Z 3.04
F-Score8
WACC8.51%
ROIC/WACC1.08
Cap/Depr(3y)114.31%
Cap/Depr(5y)102.13%
Cap/Sales(3y)5.07%
Cap/Sales(5y)4.85%
Profit Quality(3y)122.63%
Profit Quality(5y)126.26%
High Growth Momentum
Growth
EPS 1Y (TTM)8.55%
EPS 3Y1.35%
EPS 5Y0.9%
EPS Q2Q%13.76%
EPS Next Y10.93%
EPS Next 2Y10.01%
EPS Next 3Y10.02%
EPS Next 5Y6.15%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
Revenue Next Year0.98%
Revenue Next 2Y2.05%
Revenue Next 3Y2.22%
Revenue Next 5Y3.1%
EBIT growth 1Y7.59%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year54.95%
EBIT Next 3Y18.12%
EBIT Next 5Y8.49%
FCF growth 1Y199.52%
FCF growth 3Y2.2%
FCF growth 5Y5.26%
OCF growth 1Y28.04%
OCF growth 3Y1.16%
OCF growth 5Y6.05%

BORGWARNER INC / BWA FAQ

Can you provide the ChartMill fundamental rating for BORGWARNER INC?

ChartMill assigns a fundamental rating of 6 / 10 to BWA.


What is the valuation status for BWA stock?

ChartMill assigns a valuation rating of 8 / 10 to BORGWARNER INC (BWA). This can be considered as Undervalued.


Can you provide the profitability details for BORGWARNER INC?

BORGWARNER INC (BWA) has a profitability rating of 6 / 10.


What are the PE and PB ratios of BORGWARNER INC (BWA) stock?

The Price/Earnings (PE) ratio for BORGWARNER INC (BWA) is 11.43 and the Price/Book (PB) ratio is 1.87.


Is the dividend of BORGWARNER INC sustainable?

The dividend rating of BORGWARNER INC (BWA) is 3 / 10 and the dividend payout ratio is 80.6%.