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Borgwarner Inc
BWA
Motor Vehicle Parts & Accessories
Mkt Cap
$8.184BPE
13.33Debt
$4.127BCash
$1.037BEV
$11.27BFCF
$476MP/E Ratio
13.33Debt
$4.127BCash
$1.037BEV
$11.27BFCF
$476MCharts data: {"Earnings":[{"time":"2014-12-30","value":655800000},{"time":"2015-12-30","value":609700000},{"time":"2016-12-30","value":118500000},{"time":"2017-12-30","value":439900000},{"time":"2018-12-30","value":930700000},{"time":"2019-12-30","value":746000000},{"time":"2020-12-30","value":500000000},{"time":"2021-12-30","value":537000000},{"time":"2022-12-30","value":944000000},{"time":"2023-12-30","value":625000000}],"Sales":[{"time":"2014-12-30","value":8305100000},{"time":"2015-12-30","value":8023200000},{"time":"2016-12-30","value":9071000000},{"time":"2017-12-30","value":9799300000},{"time":"2018-12-30","value":10529600000},{"time":"2019-12-30","value":10168000000},{"time":"2020-12-30","value":10165000000},{"time":"2021-12-30","value":14838000000},{"time":"2022-12-30","value":15801000000},{"time":"2023-12-30","value":14198000000}],"Net Margins":[{"time":"2014-12-30","value":0.07896352843433553},{"time":"2015-12-30","value":0.07599212284375312},{"time":"2016-12-30","value":0.013063609304376585},{"time":"2017-12-30","value":0.04489096159929791},{"time":"2018-12-30","value":0.08838892265613128},{"time":"2019-12-30","value":0.07336742722265932},{"time":"2020-12-30","value":0.04918839153959666},{"time":"2021-12-30","value":0.036190861302062276},{"time":"2022-12-30","value":0.0597430542370736},{"time":"2023-12-30","value":0.044020284547119315}],"Assets":[{"time":"2014-12-30","value":7228000000},{"time":"2015-12-30","value":8841500000},{"time":"2016-12-30","value":8834700000},{"time":"2017-12-30","value":9787600000},{"time":"2018-12-30","value":10095300000},{"time":"2019-12-30","value":9702000000},{"time":"2020-12-30","value":16029000000},{"time":"2021-12-30","value":16575000000},{"time":"2022-12-30","value":16994000000},{"time":"2023-12-30","value":14453000000}],"Stockholders Equity":[{"time":"2014-12-30","value":3690900000},{"time":"2015-12-30","value":3631500000},{"time":"2016-12-30","value":3301900000},{"time":"2017-12-30","value":3825900000},{"time":"2018-12-30","value":4344800000},{"time":"2019-12-30","value":4844000000},{"time":"2020-12-30","value":6724000000},{"time":"2021-12-30","value":7262000000},{"time":"2022-12-30","value":7508000000},{"time":"2023-12-30","value":6066000000}],"ROE":[{"time":"2014-12-30","value":0.1776802405917256},{"time":"2015-12-30","value":0.16789205562439763},{"time":"2016-12-30","value":0.03588842787485993},{"time":"2017-12-30","value":0.11497948195195902},{"time":"2018-12-30","value":0.21421009022279505},{"time":"2019-12-30","value":0.15400495458298927},{"time":"2020-12-30","value":0.074360499702558},{"time":"2021-12-30","value":0.07394657119250896},{"time":"2022-12-30","value":0.12573255194459243},{"time":"2023-12-30","value":0.10303330036267722}],"ROA":[{"time":"2014-12-30","value":0.14063364692861097},{"time":"2015-12-30","value":0.11165526211615676},{"time":"2016-12-30","value":0.031138578559543616},{"time":"2017-12-30","value":0.11587110221096081},{"time":"2018-12-30","value":0.12427565302665597},{"time":"2019-12-30","value":0.1360544217687075},{"time":"2020-12-30","value":0.06469523987772163},{"time":"2021-12-30","value":0.0694419306184012},{"time":"2022-12-30","value":0.08214663999058491},{"time":"2023-12-30","value":0.08026015360132845}]}
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.
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DCF
Discounted Cash Flow Valuation of Borgwarner Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $476M | $511.5M | $548.2M | $586M | $624.9M | $664.6M | $705.1M | $746.1M | $787.5M | $829M | $870.5M | $8.705B |
| DCF | $444.7M | $414.5M | $385.3M | $357.3M | $330.4M | $304.8M | $280.5M | $257.4M | $235.7M | $215.2M | $2.152B | |
| Value | $5.377B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 8.3%
Earnings Stability 19%
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 7.6% | 1.3% | 4.5% | 8.8% | 7.3% | 4.9% | 3.6% | 6% | 4.4% | 4.5% |
| ROA | 11% | 3.1% | 12% | 12% | 14% | 6.5% | 6.9% | 8.2% | 8% | 7.9% |
| ROE | 17% | 3.6% | 11% | 21% | 15% | 7.4% | 7.4% | 13% | 10% | 10% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +5.85%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.79%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +9.28%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -1.08%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +12.42%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -1.83%.
Safety & Stabiliy
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 9.38 | 4.18 | 3.55 | 3.89 | 4.20 | 5.10 | 6.77 | 5.00 | 6.70 | 8.67 |
| Debt Equity | 0.75 | 0.68 | 0.58 | 0.52 | 0.46 | 0.56 | 0.60 | 0.56 | 0.62 | 0.68 |
| MIN | ||||||||||
| Graham Stability | - | - | 95% | 100% | 100% | 71% | 74% | 100% | 95% | 71% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 8.67.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.52.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.71.
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 | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 6.6% | 6.2% | 12% | -10% | 0.36% |
| Net Income | 27% | -7.7% | 7.7% | -34% | -5.2% |
| Stockholders Equity | 9.1% | 6.9% | -3.4% | -19% | -0.39% |
| FCF | 0.78% | -0.52% | -8.7% | -33% | -6.5% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +6.16%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.36%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -7.65%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -5.17%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +6.9%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -0.39%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -0.52%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -6.46%.