BWA:NYE-BorgWarner Inc (USD)

COMMON STOCK | Auto Parts | NYE

Last Closing Price

USD 53.80

Change

0.00 (0.00)%

Market Cap

USD 12.90B

Volume

2.24M

Average Target Price

USD 47.88 (-11.01%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company's Engine segment offers turbocharger and turbocharger actuators; eBoosters; and timing systems products, including timing chains, variable cam timing, crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains, and hybrid power transmission chains. It also provides emissions systems, such as electric air pumps and exhaust gas recirculation (EGR) modules, EGR coolers and valves, glow plugs, and instant starting systems; thermal systems products comprising viscous fan drives, polymer fans, coolant pumps, cabin heaters, battery heaters, and battery charging; and gasoline ignition technologies. The company's Drivetrain segment offers friction and mechanical products that include dual and friction clutch modules, friction and separator plates, transmission bands, torque converter and one-way clutches, and torsional vibration dampers. It also provides electro-hydraulic solenoids, transmission solenoid modules, and dual clutch control modules; rear-wheel drive/all-wheel drive (AWD) transfer case systems, front wheel drive-AWD coupling systems, and cross-axle coupling systems; starters, alternators, and hybrid electric motors; and motor controllers, battery chargers, and uninterrupted power source systems. 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 founded in 1987 and is headquartered in Auburn Hills, Michigan.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-05-09 )

Largest Industry Peers for Auto Parts

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
APTV Aptiv PLC

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USD40.24B 83.48 14.00
MGA Magna International Inc

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USD29.69B 39.09 12.80
LEA Lear Corporation

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ALV Autoliv, Inc

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WBC WABCO Holdings Inc

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USD7.01B 37.59 18.17
ALSN Allison Transmission Holdings,..

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ADNT Adient plc

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DAN Dana Incorporated

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USD3.88B 216.39 10.65
CTB Cooper Tire & Rubber Company

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USD2.99B 16.98 7.03
VNE Veoneer, Inc

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USD2.61B N/A N/A

ETFs Containing BWA

Symbol Name Weight Mer Price(Change) Market Cap
FNK First Trust Mid Cap Value.. 0.00 % 0.70 %

N/A

USD0.11B
FXD First Trust Consumer Disc.. 0.00 % 0.63 %

N/A

USD1.83B
FTXR First Trust Nasdaq Transp.. 0.00 % 0.60 %

N/A

USD1.12B
FSMD Fidelity Small-Mid Multif.. 0.00 % 0.29 %

N/A

USD0.06B
HAIL SPDR S&P Kensho Smart Mob.. 0.00 % 0.45 %

N/A

USD0.25B

Market Performance

  Market Performance vs.
Industry/Classification (Auto Parts)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 39.23% 88% B+ 88% B+
Dividend Return 0.44% 33% F 28% F
Total Return 39.67% 83% B 87% B+
Trailing 12 Months  
Capital Gain 83.06% 45% F 77% C+
Dividend Return 2.31% 70% C- 35% F
Total Return 85.37% 45% F 76% C
Trailing 5 Years  
Capital Gain 57.13% 47% F 63% D
Dividend Return 9.35% 50% F 29% F
Total Return 66.47% 53% F 60% D-
Average Annual (5 Year Horizon)  
Capital Gain 6.42% 39% F 62% D-
Dividend Return 1.63% 73% C 39% F
Total Return 8.05% 39% F 60% D-
Risk Return Profile  
Volatility (Standard Deviation) 31.73% 78% C+ 31% F
Risk Adjusted Return 25.36% 52% F 41% F
Market Capitalization 12.90B 92% A- 84% B
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Auto Parts)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 27.45 43% F 29% F
Price/Book Ratio 1.97 78% C+ 51% F
Price / Cash Flow Ratio 10.90 33% F 43% F
EV/EBITDA 8.96 76% C 73% C
Management Effectiveness  
Return on Equity 9.10% 72% C- 58% F
Return on Invested Capital 6.26% 60% D- 61% D-
Return on Assets 5.84% 88% B+ 82% B-
Debt to Equity Ratio 58.15% 43% F 58% F
Technical Ratios  
Short Ratio 5.47 17% F 13% F
Short Percent 5.95% 27% F 41% F
Beta 1.57 75% C 22% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.