BORGWARNER INC (BWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWA - US0997241064 - Common Stock
43.06 USD
+0.1 (+0.23%)
42.9 USD
-0.16 (-0.37%)
We assign a fundamental rating of 5 out of 10 to BWA. BWA was compared to 82 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.
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.
In the past 5 years BWA always reported a positive cash flow from operatings.
1.2 Ratios
BWA has a Return On Assets of 0.92%. This is in the lower half of the industry: BWA underperforms 71.95% of its industry peers.
BWA's Return On Equity of 2.24% is on the low side compared to the rest of the industry. BWA is outperformed by 70.73% of its industry peers.
With an excellent Return On Invested Capital value of 9.21%, BWA belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BWA is in line with the industry average of 8.52%.
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's Profit Margin of 0.94% is on the low side compared to the rest of the industry. BWA is outperformed by 69.51% of its industry peers.
BWA's Profit Margin has declined in the last couple of years.
BWA has a Operating Margin of 9.59%. This is comparable to the rest of the industry: BWA outperforms 43.90% of its industry peers.
In the last couple of years the Operating Margin of BWA has declined.
BWA has a worse Gross Margin (18.78%) than 74.39% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BWA is still creating some value.
BWA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BWA has more shares outstanding
BWA has a worse debt/assets ratio than last year.
2.2 Solvency
BWA has an Altman-Z score of 2.90. 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 Altman-Z score of 2.90. This is in the better half of the industry: BWA outperforms 63.41% 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.
With an excellent Debt to FCF ratio value of 3.15, BWA belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that BWA is somewhat dependend on debt financing.
BWA's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. BWA is outperformed by 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.9 |
ROIC/WACC1.18
WACC7.8%
2.3 Liquidity
BWA has a Current Ratio of 2.05. This indicates that BWA is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.05, BWA is doing good in the industry, outperforming 76.83% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that BWA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, BWA belongs to the top of the industry, outperforming 86.59% 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.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y9.55%
EPS Next 2Y9.41%
EPS Next 3Y8.3%
EPS Next 5Y6.15%
Revenue Next Year1.46%
Revenue Next 2Y2.12%
Revenue Next 3Y2.41%
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
With a Price/Earnings ratio of 9.42, the valuation of BWA can be described as very reasonable.
79.27% of the companies in the same industry are more expensive than BWA, based on the Price/Earnings ratio.
BWA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 8.33, the valuation of BWA can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BWA is valued a bit cheaper than 73.17% of the companies in the same industry.
BWA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWA indicates a somewhat cheap valuation: BWA is cheaper than 71.95% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BWA is valued cheaper than 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
BWA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.99
PEG (5Y)10.43
EPS Next 2Y9.41%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
BWA has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
BWA's Dividend Yield is comparable with the industry average which is at 4.32.
BWA's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 2Y9.41%
EPS Next 3Y8.3%
43.06
+0.1 (+0.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners103.57%
Inst Owner Change-0.29%
Ins Owners1.03%
Ins Owner Change-4.06%
Market Cap9.21B
Revenue(TTM)14.18B
Net Income(TTM)134.00M
Analysts74.29
Price Target49.06 (13.93%)
Short Float %4.12%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend0.44
Dividend Growth(5Y)-8.36%
DP80.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)7.75%
PT rev (3m)13.12%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)0.75%
EPS NY rev (3m)2.62%
Revenue NQ rev (1m)-2.33%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 8.33 | ||
| P/S | 0.65 | ||
| P/FCF | 7.43 | ||
| P/OCF | 5.39 | ||
| P/B | 1.54 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)4.57
EY10.61%
EPS(NY)5.17
Fwd EY12.01%
FCF(TTM)5.8
FCFY13.46%
OCF(TTM)7.98
OCFY18.54%
SpS66.3
BVpS28
TBVpS14.57
PEG (NY)0.99
PEG (5Y)10.43
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 | 2.9 |
F-Score8
WACC7.8%
ROIC/WACC1.18
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 Y9.55%
EPS Next 2Y9.41%
EPS Next 3Y8.3%
EPS Next 5Y6.15%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.72%
Revenue growth 5Y6.74%
Sales Q2Q%4.12%
Revenue Next Year1.46%
Revenue Next 2Y2.12%
Revenue Next 3Y2.41%
Revenue Next 5Y3.1%
EBIT growth 1Y7.59%
EBIT growth 3Y-2.46%
EBIT growth 5Y1.39%
EBIT Next Year47.4%
EBIT Next 3Y16.81%
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 of BORGWARNER INC (BWA) stock?
ChartMill assigns a valuation rating of 7 / 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 4 / 10.
Can you provide the PE and PB ratios for BWA stock?
The Price/Earnings (PE) ratio for BORGWARNER INC (BWA) is 9.42 and the Price/Book (PB) ratio is 1.54.
Can you provide the dividend sustainability for BWA stock?
The dividend rating of BORGWARNER INC (BWA) is 3 / 10 and the dividend payout ratio is 80.6%.