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BorgWarner Inc BWA

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Stock XNYS Rating as of
$60.52 +0.14 (0.23%)
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As of Delayed Price Post-Trading: $60.52 0.00

Company Report

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Cleverly Leveraging Existing Competencies to Ride the Data Center Growth Wave

Rella Suskin

BorgWarner has a record of foreseeing large, long-lasting, and efficiency-enhancing technological trends in the auto-parts industry and then taking an early leadership share through mergers and acquisitions and capital spending. Technologies that benefit from market growth and increased penetration by automotive original equipment manufacturers create a runway for above-market growth. In a mature industry with limited pricing power, increasing the value of content supplied to an OEM is the primary organic growth driver for a parts supplier. A market-leading position also supports the company’s ability to pass on annual price-downs to its suppliers.

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Price vs Fair Value

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BWA is trading at a LOCK|#@B!ldr premium.
Price
$60.38
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Among a risk-averse customer base, BorgWarner’s decades of trustworthy product delivery has created a strong brand moat source that we believe will carry over into the supply of EV parts.

Bears

Increasing exposure to Chinese OEMs can impair BorgWarner's switching cost moat source over time, given the OEMs' greater efficiency, faster pace of innovation, and shorter contracts.

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News

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Trading Information

Previous Close Price
$60.38
Day Range
$60.19–61.27
52-Week Range
$40.50–78.82
Bid/Ask
$60.40 / $61.50
Shares Outstanding
203.67M
Market Cap
$12.33B
Volume/Avg
2M / 2M

Key Statistics

Price/Earnings (Normalized)
11.52
Price/Sales
0.89
Dividend Yield (Trailing)
1.13%
Dividend Yield (Forward)
1.13%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
6.41%

Company Profile

BorgWarner is a tier one supplier of turbo and thermal management technologies, drivetrain systems, powerdrive systems, and battery and charging systems mostly to automotive original equipment manufacturers. Its products aim to move a vehicle with as few electrons as possible, resulting in cleaner, cost-optimized, and more-efficient vehicles. Foundational products, the combustion vehicle business, contributes more than 80% to group revenue while BorgWarner transitions to becoming an electric vehicle-centric (e-business) and data center energy management parts supplier. In 2024, 23% of the company’s revenue was sourced from Volkswagen and Ford. Revenue is well diversified geographically, with approximately a third each generated in North America, Europe, and Asia.
Sector
Consumer Cyclical
Industry
Auto Parts
Stock Style Box
Small Value
Total Number of Employees
37,500
Website
https://www.borgwarner.com

Competitors

Valuation

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Metric
BWA
LEA
MGA
Price/Earnings (Normalized)
 11.528.469.55
Price/Book Value
 2.201.171.47
Price/Sales
 0.890.270.42
Price/Cash Flow
 7.535.535.24
Price/Earnings
BWA
LEA
MGA

Financial Strength

Metric
BWA
LEA
MGA
Quick Ratio
 1.660.820.83
Current Ratio
 2.131.311.22
Interest Coverage
 7.678.345.89
Quick Ratio
BWA
LEA
MGA

Profitability

Metric
BWA
LEA
MGA
Return on Assets (Normalized)
 10.10%4.17%5.88%
Return on Equity (Normalized)
 24.94%12.50%15.40%
Return on Invested Capital (Normalized)
 14.55%8.90%10.16%
Return on Assets
BWA
LEA
MGA

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LOCK|h#c%rL>$LOCK|&N?$69B
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LOCK|^w!@#!LOCK|Jh$17B
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LOCK|J?gpW#LOCK|Cbm$11B
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LOCK|bd%^%$^LOCK|qD<V$10B
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LOCK|WX^hzjLOCK|$x!w$6B
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LOCK|>hK%v!LOCK|StnJ^$5B
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