BORGWARNER INC (BWA) Stock Fundamental Analysis
USA - NYSE:BWA - US0997241064 - Common Stock
44.04 USD
+0.64 (+1.47%)
44.04 USD
0 (0%)
BWA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
BWA had positive earnings in each of the past 5 years.
BWA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BWA has a Return On Assets of 1.46%. This is in the lower half of the industry: BWA underperforms 71.60% of its industry peers.
The Return On Equity of BWA (3.55%) is worse than 69.14% of its industry peers.
BWA's Return On Invested Capital of 8.92% is amongst the best of the industry. BWA outperforms 90.12% of its industry peers.
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 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's Profit Margin of 1.50% is on the low side compared to the rest of the industry. BWA is outperformed by 70.37% of its industry peers.
BWA's Profit Margin has declined in the last couple of years.
BWA's Operating Margin of 9.34% is in line compared to the rest of the industry. BWA outperforms 43.21% of its industry peers.
BWA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 18.65%, BWA is doing worse than 75.31% 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 | 9.34% | ||
| 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.
The number of shares outstanding for BWA has been reduced compared to 1 year ago.
BWA has more shares outstanding than it did 5 years ago.
BWA has a worse debt/assets ratio than last year.
2.2 Solvency
BWA has an Altman-Z score of 2.88. 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.
BWA has a better Altman-Z score (2.88) than 64.20% 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 has a better Debt to FCF ratio (3.33) than 90.12% 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.
BWA has a worse Debt to Equity ratio (0.66) than 76.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.01
WACC8.8%
2.3 Liquidity
A Current Ratio of 2.02 indicates that BWA has no problem at all paying its short term obligations.
BWA's Current ratio of 2.02 is fine compared to the rest of the industry. BWA outperforms 75.31% of its industry peers.
A Quick Ratio of 1.66 indicates that BWA should not have too much problems paying its short term obligations.
The Quick ratio of BWA (1.66) is better than 85.19% 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 been growing slightly by 7.80% over the past year.
The Earnings Per Share has been growing slightly by 0.90% on average over the past years.
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 Year0.84%
Revenue Next 2Y1.76%
Revenue Next 3Y2.44%
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.
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
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 77.78% of the companies in the same industry.
BWA is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
BWA is valuated reasonably with a Price/Forward Earnings ratio of 8.89.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BWA indicates a somewhat cheap valuation: BWA is cheaper than 67.90% of the companies listed in the same industry.
BWA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
BWA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BWA is cheaper than 65.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BWA is valued cheaply inside the industry as 87.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 5.6 |
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)11.03
EPS Next 2Y7.08%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
BWA has a Yearly Dividend Yield of 1.57%.
Compared to an average industry Dividend Yield of 3.95, BWA has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, BWA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 2Y7.08%
EPS Next 3Y7.58%
44.04
+0.64 (+1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners103.57%
Inst Owner Change-2.78%
Ins Owners1.03%
Ins Owner Change-3.87%
Market Cap9.53B
Analysts75.45
Price Target44.36 (0.73%)
Short Float %3.29%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)6.53%
PT rev (3m)16.21%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)7.12%
EPS NY rev (1m)0%
EPS NY rev (3m)7.1%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)2.92%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)2.44%
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 | 5.6 |
EPS(TTM)4.42
EY10.04%
EPS(NY)4.95
Fwd EY11.25%
FCF(TTM)5.43
FCFY12.33%
OCF(TTM)7.8
OCFY17.7%
SpS64.89
BVpS27.37
TBVpS13.98
PEG (NY)1.47
PEG (5Y)11.03
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 | 2.88 |
F-Score6
WACC8.8%
ROIC/WACC1.01
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 Year0.84%
Revenue Next 2Y1.76%
Revenue Next 3Y2.44%
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%