BORGWARNER INC (BWA) Stock Fundamental Analysis
NYSE:BWA - US0997241064 - Common Stock
44.03 USD
+0.18 (+0.41%)
44.03 USD
0 (0%)
Overall BWA gets a fundamental rating of 4 out of 10. We evaluated BWA against 80 industry peers in the Automobile Components industry. BWA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BWA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BWA had positive earnings in the past year.
In the past year BWA had a positive cash flow from operations.
BWA had positive earnings in each of the past 5 years.
Each year in the past 5 years BWA had a positive operating cash flow.
1.2 Ratios
BWA's Return On Assets of 1.46% is on the low side compared to the rest of the industry. BWA is outperformed by 72.50% of its industry peers.
The Return On Equity of BWA (3.55%) is worse than 70.00% of its industry peers.
BWA has a better Return On Invested Capital (8.92%) than 90.00% 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 8.51%.
| 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 71.25% of its industry peers.
In the last couple of years the Profit Margin of BWA has declined.
BWA has a Operating Margin (9.34%) which is comparable to the rest of the industry.
BWA's Operating Margin has declined in the last couple of years.
BWA has a Gross Margin of 18.65%. This is in the lower half of the industry: BWA underperforms 76.25% 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
BWA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BWA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BWA has been increased compared to 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.
The Altman-Z score of BWA (2.89) is better than 63.75% of its industry peers.
BWA has a debt to FCF ratio of 3.33. This is a good value and a sign of high solvency as BWA would need 3.33 years to pay back of all of its debts.
BWA's Debt to FCF ratio of 3.33 is amongst the best of the industry. BWA outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that BWA is somewhat dependend on debt financing.
BWA has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: BWA underperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.04
WACC8.61%
2.3 Liquidity
BWA has a Current Ratio of 2.02. This indicates that BWA is financially healthy and has no problem in meeting its short term obligations.
BWA has a Current ratio of 2.02. This is in the better half of the industry: BWA outperforms 75.00% of its industry peers.
A Quick Ratio of 1.66 indicates that BWA should not have too much problems paying its short term obligations.
BWA has a Quick ratio of 1.66. This is amongst the best in the industry. BWA outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
BWA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.80%.
Measured over the past 5 years, BWA shows a small growth in Earnings Per Share. The EPS has been growing by 0.90% on average per year.
The Revenue has decreased by -2.10% in the past year.
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)7.8%
EPS 3Y1.35%
EPS 5Y0.9%
EPS Q2Q%1.68%
Revenue 1Y (TTM)-2.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%0.97%
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.
The Revenue is expected to grow by 4.17% on average over the next years.
EPS Next Y6.76%
EPS Next 2Y7.08%
EPS Next 3Y7.58%
EPS Next 5Y6.26%
Revenue Next Year0.73%
Revenue Next 2Y1.83%
Revenue Next 3Y2.45%
Revenue Next 5Y4.17%
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
With a Price/Earnings ratio of 9.96, the valuation of BWA can be described as very reasonable.
BWA's Price/Earnings ratio is a bit cheaper when compared to the industry. BWA is cheaper than 77.50% of the companies in the same industry.
BWA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
Based on the Price/Forward Earnings ratio of 8.89, the valuation of BWA can be described as reasonable.
68.75% 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 22.69. BWA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than BWA, based on the Enterprise Value to EBITDA ratio.
BWA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWA is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
BWA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.47
PEG (5Y)11.02
EPS Next 2Y7.08%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, BWA has a reasonable but not impressive dividend return.
BWA's Dividend Yield is comparable with the industry average which is at 3.93.
BWA's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
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 2Y7.08%
EPS Next 3Y7.58%
44.03
+0.18 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners103.55%
Inst Owner Change-2.78%
Ins Owners1.06%
Ins Owner Change-4.25%
Market Cap9.53B
Analysts75.45
Price Target43.37 (-1.5%)
Short Float %3.41%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)10.1%
PT rev (3m)21.7%
EPS NQ rev (1m)6.3%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)5.99%
EPS NY rev (3m)6.05%
Revenue NQ rev (1m)1.78%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.89 | ||
| P/S | 0.68 | ||
| P/FCF | 8.11 | ||
| P/OCF | 5.65 | ||
| P/B | 1.61 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)4.42
EY10.04%
EPS(NY)4.95
Fwd EY11.25%
FCF(TTM)5.43
FCFY12.33%
OCF(TTM)7.8
OCFY17.71%
SpS64.89
BVpS27.37
TBVpS13.98
PEG (NY)1.47
PEG (5Y)11.02
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%
ROICexcg growth 3Y-6.79%
ROICexcg 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
WACC8.61%
ROIC/WACC1.04
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)7.8%
EPS 3Y1.35%
EPS 5Y0.9%
EPS Q2Q%1.68%
EPS Next Y6.76%
EPS Next 2Y7.08%
EPS Next 3Y7.58%
EPS Next 5Y6.26%
Revenue 1Y (TTM)-2.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%0.97%
Revenue Next Year0.73%
Revenue Next 2Y1.83%
Revenue Next 3Y2.45%
Revenue Next 5Y4.17%
EBIT growth 1Y1.39%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year44.55%
EBIT Next 3Y16.7%
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%