BORGWARNER INC (BWA) Stock Fundamental Analysis
USA - NYSE:BWA - US0997241064 - Common Stock
42.96 USD
-1.18 (-2.67%)
43.18 USD
+0.22 (+0.51%)
We assign a fundamental rating of 5 out of 10 to BWA. BWA was compared to 83 industry peers in the Automobile Components industry. The financial health of BWA is average, but there are quite some concerns on its profitability. BWA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BWA was profitable.
BWA had a positive operating cash flow in the past year.
Each year in the past 5 years BWA has been profitable.
Each year in the past 5 years BWA had a positive operating cash flow.
1.2 Ratios
BWA has a Return On Assets of 1.46%. This is in the lower half of the industry: BWA underperforms 72.29% of its industry peers.
Looking at the Return On Equity, with a value of 3.55%, BWA is doing worse than 68.67% of the companies in the same industry.
BWA has a Return On Invested Capital of 8.92%. This is amongst the best in the industry. BWA outperforms 90.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BWA is in line with the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 3.55% | ||
| ROIC | 8.92% |
ROA(3y)4.1%
ROA(5y)3.73%
ROE(3y)9.97%
ROE(5y)9.08%
ROIC(3y)8.99%
ROIC(5y)8.17%
1.3 Margins
BWA has a Profit Margin of 1.50%. This is in the lower half of the industry: BWA underperforms 68.67% of its industry peers.
BWA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.34%, BWA is in line with its industry, outperforming 44.58% of the companies in the same industry.
BWA's Operating Margin has declined in the last couple of years.
BWA has a worse Gross Margin (18.65%) than 73.49% of its industry peers.
BWA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.34% | ||
| PM (TTM) | 1.5% | ||
| GM | 18.65% |
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%
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.
Compared to 1 year ago, BWA has less shares outstanding
BWA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BWA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.89 indicates that BWA is not a great score, but indicates only limited risk for bankruptcy at the moment.
BWA has a better Altman-Z score (2.89) than 65.06% of its industry peers.
The Debt to FCF ratio of BWA is 3.33, which is a good value as it means it would take BWA, 3.33 years of fcf income to pay off all of its debts.
BWA's Debt to FCF ratio of 3.33 is amongst the best of the industry. BWA outperforms 90.36% of its industry peers.
BWA has a Debt/Equity ratio of 0.66. This is a neutral value indicating BWA is somewhat dependend on debt financing.
The Debt to Equity ratio of BWA (0.66) is worse than 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.12
WACC7.95%
2.3 Liquidity
A Current Ratio of 2.02 indicates that BWA has no problem at all paying its short term obligations.
BWA has a better Current ratio (2.02) than 77.11% of its industry peers.
BWA has a Quick Ratio of 1.66. This is a normal value and indicates that BWA is financially healthy and should not expect problems in meeting its short term obligations.
BWA's Quick ratio of 1.66 is amongst the best of the industry. BWA outperforms 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.66 |
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 decrease in Revenue. In the last year, the revenue decreased by -0.79%.
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)-0.79%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
3.2 Future
BWA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.26% yearly.
BWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y8.74%
EPS Next 2Y8.73%
EPS Next 3Y7.81%
EPS Next 5Y6.26%
Revenue Next Year1.95%
Revenue Next 2Y2.54%
Revenue Next 3Y2.73%
Revenue Next 5Y4.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BWA is valuated reasonably with a Price/Earnings ratio of 9.40.
Based on the Price/Earnings ratio, BWA is valued a bit cheaper than 78.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.10, BWA is valued rather cheaply.
BWA is valuated reasonably with a Price/Forward Earnings ratio of 8.41.
Based on the Price/Forward Earnings ratio, BWA is valued a bit cheaper than 73.49% of the companies in the same industry.
BWA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWA indicates a somewhat cheap valuation: BWA is cheaper than 66.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BWA is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 5.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.08
PEG (5Y)10.4
EPS Next 2Y8.73%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
BWA has a Yearly Dividend Yield of 1.54%.
BWA's Dividend Yield is comparable with the industry average which is at 4.40.
Compared to the average S&P500 Dividend Yield of 2.35, BWA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of BWA decreases each year by -8.36%.
BWA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.71% of the earnings are spent on dividend by BWA. This is a bit on the high side, but may be sustainable.
DP45.71%
EPS Next 2Y8.73%
EPS Next 3Y7.81%
42.96
-1.18 (-2.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners103.57%
Inst Owner Change0.21%
Ins Owners1.03%
Ins Owner Change-3.87%
Market Cap9.30B
Revenue(TTM)14.09B
Net Income(TTM)210.00M
Analysts74.29
Price Target46.95 (9.29%)
Short Float %3.48%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.44
Dividend Growth(5Y)-8.36%
DP45.71%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.58%
Min EPS beat(2)10.59%
Max EPS beat(2)12.56%
EPS beat(4)4
Avg EPS beat(4)11.14%
Min EPS beat(4)4.66%
Max EPS beat(4)16.74%
EPS beat(8)7
Avg EPS beat(8)9.53%
EPS beat(12)10
Avg EPS beat(12)10.93%
EPS beat(16)14
Avg EPS beat(16)13.96%
Revenue beat(2)1
Avg Revenue beat(2)1.04%
Min Revenue beat(2)-0.22%
Max Revenue beat(2)2.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-1.36%
Revenue beat(12)4
Avg Revenue beat(12)-1.39%
Revenue beat(16)6
Avg Revenue beat(16)-3.17%
PT rev (1m)2.65%
PT rev (3m)15.58%
EPS NQ rev (1m)3.49%
EPS NQ rev (3m)10.36%
EPS NY rev (1m)1.33%
EPS NY rev (3m)7.96%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 8.41 | ||
| P/S | 0.66 | ||
| P/FCF | 7.91 | ||
| P/OCF | 5.51 | ||
| P/B | 1.57 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 5.68 |
EPS(TTM)4.57
EY10.64%
EPS(NY)5.11
Fwd EY11.89%
FCF(TTM)5.43
FCFY12.64%
OCF(TTM)7.8
OCFY18.15%
SpS64.89
BVpS27.37
TBVpS13.98
PEG (NY)1.08
PEG (5Y)10.4
Graham Number53.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 3.55% | ||
| ROCE | 11.88% | ||
| ROIC | 8.92% | ||
| ROICexc | 10.94% | ||
| ROICexgc | 16.13% | ||
| OM | 9.34% | ||
| PM (TTM) | 1.5% | ||
| GM | 18.65% | ||
| FCFM | 8.37% |
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-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.33 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 73.46% | ||
| Cap/Sales | 3.65% | ||
| Interest Coverage | 11.71 | ||
| Cash Conversion | 83.97% | ||
| Profit Quality | 559.52% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 2.89 |
F-Score6
WACC7.95%
ROIC/WACC1.12
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 Y8.74%
EPS Next 2Y8.73%
EPS Next 3Y7.81%
EPS Next 5Y6.26%
Revenue 1Y (TTM)-0.79%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
Revenue Next Year1.95%
Revenue Next 2Y2.54%
Revenue Next 3Y2.73%
Revenue Next 5Y4.17%
EBIT growth 1Y1.39%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year47.4%
EBIT Next 3Y16.81%
EBIT Next 5Y10.65%
FCF growth 1Y98.15%
FCF growth 3Y2.2%
FCF growth 5Y5.26%
OCF growth 1Y12.09%
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 5 / 10 to BWA.
What is the valuation status of BORGWARNER INC (BWA) stock?
ChartMill assigns a valuation rating of 6 / 10 to BORGWARNER INC (BWA). This can be considered as Fairly Valued.
Can you provide the profitability details for BORGWARNER INC?
BORGWARNER INC (BWA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for BWA stock?
The Price/Earnings (PE) ratio for BORGWARNER INC (BWA) is 9.4 and the Price/Book (PB) ratio is 1.57.
Can you provide the dividend sustainability for BWA stock?
The dividend rating of BORGWARNER INC (BWA) is 3 / 10 and the dividend payout ratio is 45.71%.