BORGWARNER INC (BWA) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BWA • US0997241064
50.49 USD
+1.92 (+3.95%)
At close: Feb 4, 2026
50.5 USD
+0.01 (+0.02%)
After Hours: 2/4/2026, 8:06:36 PM
We assign a fundamental rating of 6 out of 10 to BWA. BWA was compared to 42 industry peers in the Automobile Components industry. BWA has only an average score on both its financial health and profitability. BWA is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, BWA could be worth investigating further for value investing!.
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.
- 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 (0.92%) which is comparable to the rest of the industry.
- BWA has a Return On Equity (2.24%) which is comparable to the rest of the industry.
- With an excellent Return On Invested Capital value of 9.21%, BWA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BWA is in line with the industry average of 9.05%.
- The 3 year average ROIC (8.99%) for BWA is below the current ROIC(9.21%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 0.94%, BWA is in line with its industry, outperforming 57.14% of the companies in the same industry.
- In the last couple of years the Profit Margin of BWA has declined.
- BWA's Operating Margin of 9.59% is amongst the best of the industry. BWA outperforms 83.33% of its industry peers.
- In the last couple of years the Operating Margin of BWA has declined.
- With a Gross Margin value of 18.78%, BWA perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
- In the last couple of years the Gross Margin of BWA has declined.
| Industry Rank | Sector 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%
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.
- Compared to 5 years ago, BWA has more shares outstanding
- Compared to 1 year ago, BWA has a worse debt to assets ratio.
2.2 Solvency
- BWA has an Altman-Z score of 2.98. This is not the best score and indicates that BWA is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of BWA (2.98) is better than 64.29% of its industry peers.
- The Debt to FCF ratio of BWA is 3.15, which is a good value as it means it would take BWA, 3.15 years of fcf income to pay off 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.
- With a Debt to Equity ratio value of 0.65, BWA perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.08
WACC8.55%
2.3 Liquidity
- A Current Ratio of 2.05 indicates that BWA has no problem at all paying its short term obligations.
- BWA's Current ratio of 2.05 is fine compared to the rest 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.
- Looking at the Quick ratio, with a value of 1.69, BWA is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.69 |
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%.
- Measured over the past years, BWA shows a small growth in Revenue. The Revenue has been growing by 6.74% on average per year.
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
- The Earnings Per Share is expected to grow by 6.15% on average over the next years.
- BWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
EPS Next Y10.7%
EPS Next 2Y10.02%
EPS Next 3Y10%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.05, the valuation of BWA can be described as reasonable.
- BWA's Price/Earnings ratio is rather cheap when compared to the industry. BWA is cheaper than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.25, BWA is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.66 indicates a reasonable valuation of BWA.
- 83.33% of the companies in the same industry are more expensive than BWA, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BWA to the average of the S&P500 Index (27.50), we can say BWA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BWA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BWA indicates a rather cheap valuation: BWA is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.71 | ||
| EV/EBITDA | 5.79 |
4.3 Compensation for Growth
- BWA's 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)1.03
PEG (5Y)12.23
EPS Next 2Y10.02%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- BWA has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.61, BWA pays a bit more dividend than its industry peers.
- BWA's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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
- 80.60% of the earnings are spent on dividend by BWA. This is not a sustainable payout ratio.
DP80.6%
EPS Next 2Y10.02%
EPS Next 3Y10%
50.49
+1.92 (+3.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners104.12%
Inst Owner Change-2.77%
Ins Owners1.03%
Ins Owner Change-4.06%
Market Cap10.80B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts73
Price Target49.73 (-1.51%)
Short Float %5.49%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)-0.15%
PT rev (3m)5.9%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)3%
EPS NY rev (1m)0.29%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 9.66 | ||
| P/S | 0.76 | ||
| P/FCF | 8.71 | ||
| P/OCF | 6.32 | ||
| P/B | 1.8 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)4.57
EY9.05%
EPS(NY)5.23
Fwd EY10.36%
FCF(TTM)5.8
FCFY11.48%
OCF(TTM)7.98
OCFY15.81%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)1.03
PEG (5Y)12.23
Graham Number53.65
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.98 |
F-Score8
WACC8.55%
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 Y10.7%
EPS Next 2Y10.02%
EPS Next 3Y10%
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 11.05 and the Price/Book (PB) ratio is 1.8.
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%.