BorgWarner (BWA) AI Stock Analysis

• Market Cap: $9.49B
• Dividend Yield: 1.14%
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 46.8
• Beta (1Y): 0.58
• Revenue Growth: -2.12%
• EPS Growth: -69.42%
• Country: US
• Employees: 38,300
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 1.21
• Shares Outstanding: 216,392,880
• 10 Day Avg. Volume: 2,045,228
• 30 Day Avg. Volume: 2,291,394
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 7.41
• 1Y Price Target: $43.09
• Price Target Upside: -2.13% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 67 Neutral
• Price Target: $45.00 ▲(2.20% Upside)

BorgWarner's overall stock score reflects strong financial performance and positive earnings call highlights, particularly in eProduct growth and shareholder returns. However, technical indicators suggest the stock is overbought, and the high P/E ratio indicates potential overvaluation. Challenges in certain segments and tariff impacts also weigh on the score.

Positive Factors

Business Stability

New business wins support stability across combustion, hybrid, and EV.

Market Performance

BWA is highlighted as one of the best auto suppliers based on growth, margins, balance sheet, and valuation.

Product Strategy

BWA's strategy includes a strong ICE portfolio and a significant content opportunity on BEV, with inverter and eHeater products leading the market.

Negative Factors

Capital Allocation

Investors criticize BWA for being a poor capital allocator, citing overpayments for technology acquisitions.

Financial Outlook

Soft 2025 outlook slightly below 2024 and consensus.

Growth Prospects

Delayed launch of North American EV programs dampened growth prospects.

BorgWarner Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

BorgWarner generates revenue primarily through the sale of automotive components and systems to original equipment manufacturers (OEMs) and the aftermarket. Key revenue streams include the production of turbochargers, which improve engine efficiency, and advanced transmission systems that enhance vehicle performance. The company also earns money from its electrification products, which are increasingly in demand as the automotive market shifts towards electric vehicles. Significant partnerships with major automotive manufacturers, along with ongoing investments in research and development, enable BorgWarner to stay competitive and capitalize on emerging market trends, thus contributing to its overall earnings.

BorgWarner Financial Statement Overview

Summary

BorgWarner demonstrates stable financial health with strong cash flows and a well-managed balance sheet. While profitability margins are modest, the company maintains operational efficiency and effective leverage management. The cash flow strength supports ongoing investments, positioning BorgWarner well for future growth in the auto-parts industry.

Income Statement

BorgWarner's income statement reveals moderate profitability and stable revenue levels. The TTM gross profit margin is approximately 18.5%, and the net profit margin stands around 1.5%, indicating limited profitability. However, the EBITDA margin of 7.7% suggests operational efficiency. The revenue shows a slight decline compared to previous years, but the company maintains consistent gross profits.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.66, suggesting a balanced capital structure. The equity ratio is approximately 41.1%, indicating a solid asset base funded by equity. While total debt has decreased over the years, stockholders' equity has increased, signifying controlled leverage and improved equity strength.

Cash Flow

The cash flow statement shows strong cash generation capabilities, with the TTM free cash flow reaching $1.4 billion, a significant increase from the previous year. The operating cash flow to net income ratio is robust, highlighting efficient cash conversion. The free cash flow to net income ratio is impressive, reflecting sound liquidity management despite capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.04B	14.09B	14.20B	15.80B	14.84B	10.16B
Gross Profit	2.60B	2.65B	2.57B	3.10B	2.85B	1.91B
EBITDA	1.28B	1.32B	1.67B	1.64B	1.69B	1.58B
Net Income	210.00M	338.00M	625.00M	944.00M	537.00M	500.00M
Balance Sheet
Total Assets	14.40B	13.99B	14.45B	16.99B	16.57B	16.03B
Cash, Cash Equivalents and Short-Term Investments	2.04B	2.09B	1.53B	1.08B	1.84B	1.65B
Total Debt	4.08B	4.34B	3.93B	4.31B	4.52B	4.01B
Total Liabilities	8.33B	8.29B	8.39B	9.49B	9.31B	9.30B
Stockholders Equity	5.92B	5.53B	5.83B	7.22B	6.95B	6.43B
Cash Flow
Free Cash Flow	1.40B	729.00M	565.00M	846.00M	638.00M	723.00M
Operating Cash Flow	1.70B	1.38B	1.40B	1.57B	1.31B	1.22B
Investing Cash Flow	-282.00M	-603.00M	-593.00M	-1.42B	-1.40B	-906.00M
Financing Cash Flow	75.00M	-167.00M	-521.00M	-567.00M	286.00M	437.00M

BorgWarner Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWA, the sentiment is Positive. The current price of 44.03 is above the 20-day moving average (MA) of 41.98, above the 50-day MA of 38.12, and above the 200-day MA of 32.62, indicating a bullish trend. The MACD of 1.65 indicates Positive momentum. The RSI at 77.51 is Negative, neither overbought nor oversold. The STOCH value of 83.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWA.

BorgWarner Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	79 Outperform	$9.63B	13.62	29.99%	2.35%	-0.98%	21.64%
APTV	79 Outperform	$17.07B	13.19	15.52%	―	-2.47%	-43.12%
LEA	76 Outperform	$5.87B	12.67	9.51%	2.84%	-3.12%	-8.23%
ALSN	74 Outperform	$7.34B	9.96	47.08%	1.19%	2.70%	15.17%
BWA	67 Neutral	$9.49B	46.82	3.66%	1.14%	-2.12%	-69.42%
GNTX	66 Neutral	$6.17B	15.68	16.38%	1.71%	2.43%	-1.25%
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%

BorgWarner Corporate Events

BorgWarner Increases Dividend Amid Strong Q2 Growth

On July 30, 2025, BorgWarner‘s Board of Directors declared a quarterly cash dividend of $0.17 per share, payable on September 15, 2025. The company reported a 1% increase in U.S. GAAP net sales for the second quarter of 2025 compared to the previous year, with significant growth in light vehicle eProduct sales. BorgWarner also announced an increase in its share repurchase program to $1 billion and a 55% increase in its quarterly cash dividend per share. The company secured multiple new business awards, including turbocharger and eProduct contracts, expected to support long-term profitable growth.