Borgwarner Inc

Consumer Discretionary
Auto Parts:O.E.M.
www.borgwarner.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.50B
PE 8
Debt $4.93B
Cash $2.00B
EV $10.43B
FCF $869.00M

Earnings

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Sales & Net Margins

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Earnings	$897.00M
EBIT	$1.14B
ROE	14%
ROA	8%
FCF	$869.00M
Equity	$6.35B
Growth Stability	71%
PE	8.36
PEG	0.88
PB	1.18
P/FCF	8.63
P/S	0.53
Price/Cash	0.27
Debt/Equity	0.78
Debt/FCF	5.67
Net Margins	7%
Gross Margins	19%
Op. Margins	8%
Earnings CAGR	10%
Sales Growth YoY	75%
Sales Growth QoQ	-4%
Sales CAGR	8%
FCF CAGR	5%
Equity CAGR	9%
Earnings Stability	0.27
Earnings Growth YoY	368%
Earnings Growth QoQ	-23%
Earnings CAGR 5Y	10%

Sales CAGR 5Y	10%
FCF CAGR 5Y	2%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	-4%
Sales CAGR 3Y	-4%
FCF CAGR 3Y	14%
Equity CAGR 3Y	-7%
Market Cap	$7.50B
Revenue	$14.17B
Dividend Yield	1%
Payout Ratio	11%
Assets	$15.14B
Total Debt	$4.93B
Cash	$2.00B
Shares Outstanding	217.89M
EV	10.43B
Earnings Score	14%
Moat Score	88%
Safety Score	80%
Final Score	60%
Working Capital	3.14B
Current Ratio	1.84
Gross Profit	$2.62B
Shares Growth 3y	-3%
Equity Growth QoQ	1%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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BorgWarner is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products help improve vehicle performance, propulsion efficiency, stability and air quality. The Company manufactures and sells these products worldwide, primarily to original equipment manufacturers of light vehicles (passenger cars, sport-utility vehicles, vans and light trucks). The Company's products are also sold to OEMs of commercial vehicles (medium-duty trucks, heavy-duty trucks and buses) and off-highway vehicles (agricultural and construction machinery and marine applications). The Company also manufactures and sells its products to certain tier one vehicle systems suppliers and into the aftermarket for light, commercial and off-highway vehicles. The Company operates manufacturing facilities serving customers in Europe, the Americas and Asia and is an original equipment supplier to nearly every major automotive OEM in the world.

SEC Filings

Direct access to Borgwarner Inc (BWA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Borgwarner Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Borgwarner Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 27%

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Borgwarner Inc Discounted Cash Flow

Fully customizable DCF calculator online for Borgwarner Inc.

Years

Calculation mode

= $12B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$869M	$909M	$950M	$993M	$1B	$1.1B	$1.1B	$1.2B	$1.2B	$1.3B	$1.4B	$14B
DCF		$826M	$785M	$746M	$710M	$674M	$641M	$609M	$579M	$551M	$523M	$5.2B
Value	$12B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	8%	8%	1%	4%	9%	7%	5%	4%	6%	4%	7%
ROA	-	11%	3%	12%	12%	14%	6%	7%	8%	8%	8%
ROE	-	17%	4%	11%	21%	15%	7%	7%	13%	10%	14%

Bad Net Margins (6.98%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	9.38	4.18	3.55	3.89	4.2	5.1	6.77	5	6.7	5.67
Debt over Equity	0.37	0.75	0.68	0.58	0.52	0.46	0.56	0.6	0.56	0.62	0.78
Growth Stability	-	-	-	95%	100%	100%	71%	74%	100%	95%	71%

Bad Debt/FCF ratio (5.67)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.78)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (71%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-3%	13%	8%	7%	-3%	-0%	46%	6%	-10%	10%
Earnings YoY growth	-	-7%	-81%	271%	112%	-20%	-33%	7%	76%	-34%	10%
Equity YoY growth	-	-2%	-9%	16%	14%	11%	39%	8%	3%	-19%	5%
FCF YoY growth	-	22%	84%	16%	-7%	-9%	41%	-14%	32%	-33%	2%