BORGWARNER INC (BWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWA - US0997241064 - Common Stock
47.67 USD
-0.12 (-0.25%)
47.67 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. BWA has only an average score on both its financial health and profitability. BWA may be a bit undervalued, certainly considering the very reasonable score on growth This makes BWA very considerable 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.
In the past 5 years BWA always reported a positive cash flow from operatings.
1.2 Ratios
BWA's Return On Assets of 0.92% is in line compared to the rest of the industry. BWA outperforms 52.38% of its industry peers.
With a Return On Equity value of 2.24%, BWA perfoms like the industry average, outperforming 54.76% of the companies in the same 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.
BWA had an Average Return On Invested Capital over the past 3 years of 8.99%. This is in line with the industry average of 9.10%.
The last Return On Invested Capital (9.21%) for BWA is above the 3 year average (8.99%), which is a sign of increasing profitability.
| 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
BWA has a Profit Margin of 0.94%. This is comparable to the rest of the industry: BWA outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of BWA has declined.
BWA has a Operating Margin of 9.59%. This is amongst the best in the industry. BWA outperforms 83.33% of its industry peers.
BWA's Operating Margin has declined in the last couple of years.
BWA's Gross Margin of 18.78% is in line compared to the rest of the industry. BWA outperforms 45.24% of its industry peers.
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.
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.
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.
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.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.09
WACC8.48%
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 (2.05) which is in line with its industry peers.
A Quick Ratio of 1.69 indicates that BWA should not have too much problems paying 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 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.
BWA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.90% yearly.
Looking at the last year, BWA shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
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
BWA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.15% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BWA is valuated reasonably with a Price/Earnings ratio of 10.43.
Compared to the rest of the industry, the Price/Earnings ratio of BWA indicates a rather cheap valuation: BWA is cheaper than 88.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, BWA is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.18, the valuation of BWA can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BWA is valued cheaper than 85.71% of the companies in the same industry.
BWA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWA indicates a rather cheap valuation: BWA is cheaper than 80.95% of the companies listed in the same industry.
BWA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWA is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.22 | ||
| EV/EBITDA | 5.7 |
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
PEG (5Y)11.54
EPS Next 2Y9.65%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
BWA has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.62, BWA pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.90, BWA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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
BWA pays out 80.60% of its income as dividend. This is not a sustainable payout ratio.
DP80.6%
EPS Next 2Y9.65%
EPS Next 3Y9.44%
47.67
-0.12 (-0.25%)
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 Cap10.20B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts73
Price Target49.8 (4.47%)
Short Float %5.87%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)1.08%
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 | 10.43 | ||
| Fwd PE | 9.18 | ||
| P/S | 0.72 | ||
| P/FCF | 8.22 | ||
| P/OCF | 5.97 | ||
| P/B | 1.7 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 5.7 |
EPS(TTM)4.57
EY9.59%
EPS(NY)5.19
Fwd EY10.9%
FCF(TTM)5.8
FCFY12.16%
OCF(TTM)7.98
OCFY16.75%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)1
PEG (5Y)11.54
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
WACC8.48%
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 10.43 and the Price/Book (PB) ratio is 1.7.
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%.