BORGWARNER INC (BWA)
US0997241064 - Common Stock
Taking everything into account, BWA scores 3 out of 10 in our fundamental rating. BWA was compared to 81 industry peers in the Automobile Components industry. BWA has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
With a Return On Assets value of 4.35%, BWA is not doing good in the industry: 61.73% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 10.51%, BWA is doing worse than 62.96% of the companies in the same industry.
With a Return On Invested Capital value of 8.72%, BWA is not doing good in the industry: 61.73% of the companies in the same industry are doing better.
BWA had an Average Return On Invested Capital over the past 3 years of 8.50%. This is in line with the industry average of 9.44%.
The 3 year average ROIC (8.50%) for BWA is below the current ROIC(8.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 10.51% | ||
| ROIC | 8.72% |
ROA(3y)4.37%
ROA(5y)4.79%
ROE(3y)10.51%
ROE(5y)11.03%
ROIC(3y)8.5%
ROIC(5y)8.66%
1.3 Margins
BWA has a Profit Margin of 4.51%. This is in the lower half of the industry: BWA underperforms 61.73% of its industry peers.
In the last couple of years the Profit Margin of BWA has declined.
With a Operating Margin value of 8.89%, BWA is not doing good in the industry: 61.73% of the companies in the same industry are doing better.
BWA's Operating Margin has declined in the last couple of years.
BWA's Gross Margin of 18.09% is on the low side compared to the rest of the industry. BWA is outperformed by 77.78% of its industry peers.
In the last couple of years the Gross Margin of BWA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.89% | ||
| PM (TTM) | 4.51% | ||
| GM | 18.09% |
OM growth 3Y-0.75%
OM growth 5Y-6.17%
PM growth 3Y-3.63%
PM growth 5Y-13.02%
GM growth 3Y-1.26%
GM growth 5Y-3.1%
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.
Compared to 5 years ago, BWA has more shares outstanding
The debt/assets ratio for BWA is higher compared to a year ago.
2.2 Solvency
BWA has an Altman-Z score of 2.58. 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.
With a Altman-Z score value of 2.58, BWA perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
BWA has a debt to FCF ratio of 8.27. This is a slightly negative value and a sign of low solvency as BWA would need 8.27 years to pay back of all of its debts.
BWA's Debt to FCF ratio of 8.27 is on the low side compared to the rest of the industry. BWA is outperformed by 74.07% of its industry peers.
BWA has a Debt/Equity ratio of 0.57. This is a neutral value indicating BWA is somewhat dependend on debt financing.
BWA has a Debt to Equity ratio of 0.57. This is amonst the worse of the industry: BWA underperforms 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.08
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.54 indicates that BWA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.54, BWA is doing worse than 82.72% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that BWA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, BWA is in the better half of the industry, outperforming 76.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for BWA have decreased by -8.19% in the last year.
Measured over the past years, BWA shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.77% on average per year.
Looking at the last year, BWA shows a decrease in Revenue. The Revenue has decreased by -0.87% in the last year.
BWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.16% yearly.
EPS 1Y (TTM)-8.19%
EPS 3Y17.11%
EPS 5Y-0.77%
EPS Q2Q%-5.5%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y11.78%
Revenue growth 5Y6.16%
Sales Q2Q%-14%
3.2 Future
The Earnings Per Share is expected to grow by 7.34% 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 4.95% yearly.
EPS Next Y-4.03%
EPS Next 2Y3.91%
EPS Next 3Y6.8%
EPS Next 5Y7.34%
Revenue Next Year1.5%
Revenue Next 2Y4.01%
Revenue Next 3Y4.87%
Revenue Next 5Y4.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.70, the valuation of BWA can be described as very cheap.
80.25% of the companies in the same industry are more expensive than BWA, based on the Price/Earnings ratio.
BWA is valuated cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
BWA is valuated cheaply with a Price/Forward Earnings ratio of 7.03.
BWA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BWA is cheaper than 72.84% of the companies 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 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, BWA is valued a bit more expensive than 60.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.54 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.91%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, BWA has a reasonable but not impressive dividend return.
BWA's Dividend Yield is slightly below the industry average, which is at 3.65.
With a Dividend Yield of 1.30, BWA pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of BWA decreases each year by -3.66%.
BWA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-3.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BWA pays out 18.89% of its income as dividend. This is a sustainable payout ratio.
DP18.89%
EPS Next 2Y3.91%
EPS Next 3Y6.8%
BORGWARNER INC
NYSE:BWA (7/26/2024, 3:15:01 PM)
After market: 32.81 0 (0%)32.81
+0.63 (+1.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 10.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.89% | ||
| PM (TTM) | 4.51% | ||
| GM | 18.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-8.19%
EPS 3Y17.11%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y11.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y