BORGWARNER INC (BWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWA - US0997241064 - Common Stock
47.89 USD
+0.31 (+0.65%)
47.89 USD
0 (0%)
Overall BWA gets a fundamental rating of 5 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. With these ratings, BWA could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year BWA was profitable.
In the past year BWA had a positive cash flow from operations.
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.
The Return On Equity of BWA (2.24%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.21%, BWA belongs to the top 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 9.10%.
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
With a Profit Margin value of 0.94%, BWA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
BWA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.59%, BWA belongs to the top 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.
BWA has a Gross Margin (18.78%) which is comparable to the rest of the 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.
BWA has less shares outstanding than it did 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
An Altman-Z score of 2.97 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 (2.97) 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.
The Debt to FCF ratio of BWA (3.15) is better than 78.57% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that BWA is somewhat dependend on debt financing.
BWA has a Debt to Equity ratio (0.65) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.09
WACC8.45%
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 in line compared to the rest of the industry. BWA outperforms 59.52% of its industry peers.
A Quick Ratio of 1.69 indicates that BWA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.69, BWA is doing good in 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
BWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.55%, which is quite good.
The Earnings Per Share has been growing slightly by 0.90% on average over the past years.
Looking at the last year, BWA shows a small growth in Revenue. The Revenue has grown by 0.10% in the last 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)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.
Based on estimates for the next years, BWA will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
EPS Next Y10.38%
EPS Next 2Y9.65%
EPS Next 3Y9.44%
EPS Next 5Y6.15%
Revenue Next Year0.77%
Revenue Next 2Y1.65%
Revenue Next 3Y2.28%
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
A Price/Earnings ratio of 10.48 indicates a reasonable valuation of BWA.
Based on the Price/Earnings ratio, BWA is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.17, BWA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.22, the valuation of BWA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BWA indicates a rather cheap valuation: BWA is cheaper than 88.10% of the companies listed 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 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
BWA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BWA is cheaper than 80.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BWA is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.26 | ||
| EV/EBITDA | 5.72 |
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)1.01
PEG (5Y)11.6
EPS Next 2Y9.65%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.51%, BWA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.66, BWA pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.94, BWA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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 2Y9.65%
EPS Next 3Y9.44%
47.89
+0.31 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners104.12%
Inst Owner Change0%
Ins Owners1.03%
Ins Owner Change-4.06%
Market Cap10.25B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts73.33
Price Target49.8 (3.99%)
Short Float %5.87%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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)1.5%
PT rev (3m)9.37%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)0.13%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 9.22 | ||
| P/S | 0.72 | ||
| P/FCF | 8.26 | ||
| P/OCF | 6 | ||
| P/B | 1.71 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 5.72 |
EPS(TTM)4.57
EY9.54%
EPS(NY)5.19
Fwd EY10.85%
FCF(TTM)5.8
FCFY12.1%
OCF(TTM)7.98
OCFY16.67%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)1.01
PEG (5Y)11.6
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 | 2.97 |
F-Score8
WACC8.45%
ROIC/WACC1.09
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 Y10.38%
EPS Next 2Y9.65%
EPS Next 3Y9.44%
EPS Next 5Y6.15%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
Revenue Next Year0.77%
Revenue Next 2Y1.65%
Revenue Next 3Y2.28%
Revenue Next 5Y3.1%
EBIT growth 1Y7.59%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year54.03%
EBIT Next 3Y17.91%
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 5 / 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 10.48 and the Price/Book (PB) ratio is 1.71.
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%.