BorgWarner Inc.

BorgWarner Inc.

BWAยทNYSE

$76.55

+3.3%
Consumer CyclicalAuto - Parts

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through four segments: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, canisters, cabin heaters, battery modules and systems, battery packs, battery heaters, and battery charging. The E-Propulsion & Drivetrain segment provides rotating electrical components, power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products. The Fuel Injection segment develops and manufactures gasoline and diesel fuel injection components and systems. The Aftermarket segment sells products and services to independent aftermarket customers and original equipment service customers. This segment provides a range of solutions, including fuel injection, electronics and engine management, maintenance, and test equipment and vehicle diagnostics. The company sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was incorporated in 1987 and is headquartered in Auburn Hills, Michigan.

At a Glance

Live Snapshot
Market Cap$15.70B
EPS1.2800
P/E Ratio59.80
Earnings Date07/30/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 59.8).

Valuation inputs: P/E 59.8, earnings yield +1.7%, momentum +3.3%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +5.1%, ROIC +8.0%).

Profitability stack: net margin +1.9%, ROE +5.1%, ROIC +8.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +59.2%, momentum +3.3%, net margin +1.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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BorgWarner Inc. Market vs Earnings Trajectory

BWA ยท NYSE

Loading price and EPS data...

BorgWarner Inc.

BorgWarner Inc. Fair Value Envelope

BWA ยท NYSE

Our analysis suggests that BWA has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $76.55, this represents a potential HIDDEN relative to our calculated worth for BorgWarner Inc..

Intrinsic Value
Current Price: $76.55
3Y-68.0%
5Y-46.0%
10Y-54.0%
3Y+13.0%
5Y+41.0%
10Y+58.0%
3Y-71.0%
5Y-45.0%
10Y+134.0%
3Y+5.0%
5Y+35.0%
10Y+59.0%
3Y+24.0%
5Y+63.0%
10Y+120.0%
3Y-19.0%
5Y-14.0%
10Y+56.0%
BorgWarner Inc.

BorgWarner Inc. Profit Bridge

BWA ยท NYSE
Revenue14.32B
Cost of Goods Sold (11.64B)
Gross Profit2.67B
Operating Expenses (1.35B)
Operating Income1.32B
Interest Expense (99.00M)
Other Income/Expense-799.00M
Pretax Income524.00M
Income Tax (189.00M)
Net Income277.00M
Net Income
277.00M

Profitability Analysis

Gross Margin

18.7%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

9.2%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

1.9%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

36.1%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

18.68%
Gross Profit Margin
1%
3Y-
5Y-1.0%
10Y-12.0%
9.24%
Operating Profit Margin
3%
3Y+11.0%
5Y-2.0%
10Y+271.0%
1.93%
Net Profit Margin
-19%
3Y-74.0%
5Y-61.0%
10Y+48.0%
5.09%
Return on Equity
-17%
3Y-61.0%
5Y-35.0%
10Y+38.0%
2.01%
Return on Assets
-17%
3Y-64.0%
5Y-35.0%
10Y+50.0%
8.03%
Return on Invested Capital
-13%
3Y+24.0%
5Y+76.0%
10Y+193.0%
BWA

BorgWarner Inc. Cash Conversion Engine

BWA ยท NYSE
Net Income277.00M
Depreciation & Amortization719.00M
Stock-Based Compensation0.00
Change in Working Capital-58.00M
Others843.00M
Capital Expenditures-469.00M
Free Cash Flow1.18B

Cash Flow Quality Analysis

FCF Conversion Rate

425.6%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

28.5%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+73.1%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$58.00M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

bwa

BorgWarner Inc. Funding & Solvency Profile

BWA ยท NYSE
Cash & Cash Equivalents2.11B
Net Receivables3.09B
Inventory1.20B
Other Current Assets344.00M
Total Current Assets7 B
Property, Plant & Equipment3.26B
Goodwill & Intangible Assets2.42B
Long-Term Investments0.00
Other Non-Current Assets1.23B
Total Non-Current Assets4 B
Total Assets
13.65B

Financial Health Analysis

Current Ratio

2.13x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

1.42x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

4 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

49% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

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BorgWarner Inc. Street Expectations Map

BWA ยท NYSE

Wall Street analysts project that BWA stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 71.30, with estimates ranging from a low of 51.00 to a high of 83.00.

Lowest Target
51.00
-33.38%
Consensus Target
71.30
-6.86%
Highest Target
83.00
8.43%

The consensus 1-year price target stands at 71.30, with estimates ranging from a low of 51.00 to a high of 83.00.

Analyst Consensus Analysis

Upside Potential

-6.9%

Downside risk. Current price above analyst targets indicates potential overvaluation. Exercise caution and review catalysts.

Analyst Agreement

44.9% spread

Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.

Risk-Reward Profile

0.25x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Low

Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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BorgWarner Inc. Insider Positioning

BWA ยท NYSE

During the last 12 months, insiders have sold $15.66M worth of BWA shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

111.6K

6.84M

Net Activity

-6.8M

-$6.84M

3-6 Months

Bought

0

0.00

Sold

54.5K

3.47M

Net Activity

-3.5M

-$3.47M

6-9 Months

Bought

0

0.00

Sold

26.7K

1.21M

Net Activity

-1.2M

-$1.21M

9-12 Months

Bought

0

0.00

Sold

104.4K

4.14M

Net Activity

-4.1M

-$4.14M

Top Buyers

No buying activity

Top Sellers

1
DS

Demmerle Stefan

Officer: Vice President

92.5K sharesโ€ข10 transactions

$4.44M

2
CTM

Calaway Tonit M

Officer: Evp, Cao, Gen Counsel & Sec

39.7K sharesโ€ข3 transactions

$2.37M

3
FJF

Fadool Joseph F.

Director, Officer: President And Ceo

29.0K sharesโ€ข1 transactions

$1.95M

4
WV

Weng Volker

Officer: Vice President

30.6K sharesโ€ข5 transactions

$1.80M

5
WT

Wingfield Tania

Officer: Evp & Chro

22.9K sharesโ€ข2 transactions

$1.45M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $15.66M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$6.84M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.31%
Dividend Yield
-14%
3Y-19.0%
5Y-24.0%
10Y-37.0%
ย 

bwa Dividend History

BWA
10Y CAGR +4%
Latest $0.17
Annual $0.79
5 year growth trend
Last Period: +0%