A Business at a Glance
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Item 1. Business BorgWarner Inc. (collectively with its consolidated subsidiaries, the “Company” or “BorgWarner”) is a Delaware corporation incorporated in 1987. The Company is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. BorgWarner’s products help improve vehicle performance, propulsion efficiency, stability and air quality. The Company manufactures and sells these products worldwide, primarily to original equipment manufacturers (“OEMs”) 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.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.3B | 14.3B | 14.1B | 14.2B | 12.6B | 11.8B |
| Net Income | 277M | 277M | 338M | 625M | 944M | 537M |
| EPS | $1.28 | $1.28 | $1.50 | $2.67 | $3.99 | $2.24 |
| Free Cash Flow | 1.2B | 1.2B | 711M | 565M | 947M | 792M |
| ROIC | 4.4% | 4.7% | 5.5% | 9.0% | 8.1% | 8.8% |
| Gross Margin | 18.7% | 18.7% | 18.8% | 18.1% | 18.7% | 18.4% |
| Debt/Equity | 0.74 | 0.74 | 0.77 | 0.66 | 0.59 | 0.64 |
| Dividends/Share | $0.55 | $0.56 | $0.44 | $0.56 | $0.68 | $0.68 |
| Operating Income | 536M | 536M | 546M | 1.2B | 1.0B | 914M |
| Operating Margin | 3.7% | 3.7% | 3.9% | 8.2% | 8.0% | 7.7% |
| ROE | 5.1% | 5.0% | 6.0% | 9.6% | 13.3% | 8.0% |
| Shares Outstanding | 216M | 216M | 225M | 234M | 237M | 240M |
BORGWARNER INC passes 2 of 9 quality checks, indicating weak fundamentals.
BORGWARNER INC trades at 41.8x trailing earnings, compared to its 15-year median P/E of 14.3x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 9.4x vs a median of 10.6x. The company's 5-year average ROIC is 7.2% with a gross margin of 18.5%. Total shareholder yield (dividends + buybacks) is 5.4%. At current prices, the estimated annualized return to fair value is +7.4%.
BORGWARNER INC (BWA) has a current P/E ratio of 41.8, compared to its historical median P/E of 14.3. The stock is currently considered Expensive based on its historical valuation range.
BORGWARNER INC (BWA) has a 5-year average return on invested capital (ROIC) of 7.2%. This is below average and may indicate limited pricing power.
BORGWARNER INC (BWA) has a market capitalization of $11.6B. It is classified as a large-cap stock.
Yes, BORGWARNER INC (BWA) pays a dividend with a trailing twelve-month yield of 1.03%. The company also returns capital through share buybacks, with a buyback yield of 4.38%.
Based on historical P/E analysis, BORGWARNER INC (BWA) appears expensive. The current P/E of 41.8 is 192% above its historical median of 14.3. The estimated fair value CAGR (P/E method) is -7.3%.
BORGWARNER INC (BWA) operates in the Motor Vehicle Parts & Accessories industry, within the Consumer Cyclical sector.
BORGWARNER INC (BWA) reported annual revenue of $14.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
BORGWARNER INC (BWA) has a net profit margin of 1.9%. This is a modest margin.
BORGWARNER INC (BWA) generated $1.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
BORGWARNER INC (BWA) has a debt-to-equity ratio of 0.74. This indicates moderate leverage.
BORGWARNER INC (BWA) reported earnings per share (EPS) of $1.28 in its most recent fiscal year.
BORGWARNER INC (BWA) has a return on equity (ROE) of 5.0%. This indicates moderate shareholder returns.
BORGWARNER INC (BWA) has a 5-year average gross margin of 18.5%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for BORGWARNER INC (BWA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
BORGWARNER INC (BWA) has a book value per share of $25.15, based on its most recent annual SEC filing.