BorgWarner (BWA) AI Stock Analysis

• Market Cap: $9.60B
• Dividend Yield: 1.11%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 71.9
• Beta (1Y): 0.77
• Revenue Growth: 0.08%
• EPS Growth: -83.69%
• Country: US
• Employees: 38,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.24
• Shares Outstanding: 213,928,120
• 10 Day Avg. Volume: 2,438,338
• 30 Day Avg. Volume: 2,112,911
• PEG Ratio: -0.47
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 9.75
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 8.95
• 1Y Price Target: $49.70
• Price Target Upside: 10.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.7
• Revenue Forecast (FY): $14.26B

• Rating: 72 Outperform
• Price Target: $49.00 ▲(8.86% Upside)

BorgWarner's overall stock score is driven by strong earnings call performance and stable financials, despite high valuation concerns. The company's strategic focus on eProducts and shareholder returns, along with positive technical indicators, supports a favorable outlook. However, profitability challenges and a high P/E ratio suggest caution.

Positive Factors

Strong Growth in eProduct Sales

The significant growth in eProduct sales indicates BorgWarner's strong position in the electrification trend, supporting long-term revenue growth.

New Business Awards

Winning new contracts enhances BorgWarner's market position and ensures future revenue streams, contributing to sustainable growth.

Improved Financial Guidance

Raising financial guidance reflects management's confidence in operational execution and market demand, indicating robust future performance.

Negative Factors

Challenges in Battery and Charging Systems

Declines in this segment suggest difficulties in adapting to market demands, potentially hindering growth in a key area of electrification.

Tariff Headwinds

Tariff costs can erode margins and profitability, posing a risk to financial performance if trade tensions persist.

Flat Organic Sales

Flat organic sales growth indicates challenges in expanding market share or product adoption, potentially impacting long-term revenue growth.

BorgWarner Business Overview & Revenue Model

Company Description

BorgWarner Inc. is a global leader in advanced technologies for combustion, hybrid, and electric vehicles. The company operates through two main segments: Engine and Motion. BorgWarner's core products include turbochargers, emissions systems, and transmission systems, which enhance vehicle performance and efficiency. With a strong focus on innovation and sustainability, BorgWarner is committed to supporting the automotive industry's transition towards cleaner energy solutions.

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 performance with moderate revenue growth and strong cash flow generation. However, profitability metrics have weakened, and operational efficiency needs improvement. The balance sheet remains solid with manageable leverage, supporting long-term stability.

Income Statement

BorgWarner's income statement shows a modest revenue growth of 1.1% in the TTM period, recovering from a slight decline in the previous year. The gross profit margin remains stable at around 18.5%, but the net profit margin has decreased to 0.94%, indicating pressure on profitability. The EBIT and EBITDA margins have also declined, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.65, indicating moderate leverage. The return on equity has decreased to 2.31% in the TTM period, showing reduced profitability. However, the equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis shows a strong free cash flow growth of 11.92% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.50, reflecting efficient cash conversion. The free cash flow to net income ratio is high at 0.92, highlighting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.18B	14.09B	14.20B	15.80B	14.84B	10.16B
Gross Profit	2.63B	2.65B	2.57B	3.10B	2.85B	1.91B
EBITDA	1.29B	1.32B	1.67B	1.64B	1.69B	1.58B
Net Income	134.00M	338.00M	625.00M	944.00M	537.00M	500.00M
Balance Sheet
Total Assets	14.50B	13.99B	14.45B	16.99B	16.57B	16.03B
Cash, Cash Equivalents and Short-Term Investments	2.17B	2.09B	1.53B	1.08B	1.84B	1.65B
Total Debt	4.06B	4.34B	3.93B	4.31B	4.52B	4.01B
Total Liabilities	8.35B	8.29B	8.39B	9.49B	9.31B	9.30B
Stockholders Equity	5.99B	5.53B	5.83B	7.22B	6.95B	6.43B
Cash Flow
Free Cash Flow	1.46B	729.00M	565.00M	846.00M	638.00M	723.00M
Operating Cash Flow	1.71B	1.35B	1.40B	1.57B	1.31B	1.22B
Investing Cash Flow	-389.00M	-603.00M	-593.00M	-1.42B	-1.40B	-906.00M
Financing Cash Flow	-1.17B	-167.00M	-521.00M	-567.00M	286.00M	437.00M

BorgWarner Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 45.01 is above the 20-day moving average (MA) of 43.22, above the 50-day MA of 43.47, and above the 200-day MA of 35.01, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 60.67 is Neutral, neither overbought nor oversold. The STOCH value of 90.76 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
LEA	75 Outperform	$5.66B	13.36	8.96%	2.84%	-1.90%	-13.86%
ALV	74 Outperform	$9.09B	12.37	31.09%	2.46%	0.84%	26.17%
APTV	73 Outperform	$18.07B	65.19	3.25%	―	2.16%	-85.91%
BWA	72 Outperform	$9.60B	71.91	2.24%	1.11%	0.08%	-83.69%
ALSN	68 Neutral	$6.72B	9.89	40.38%	1.30%	-4.21%	-0.45%
GNTX	66 Neutral	$5.18B	13.97	15.29%	2.08%	2.99%	-9.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

BorgWarner Corporate Events

BorgWarner Inc. Reports Strong Q3 2025 Results

BorgWarner Inc. is a global leader in providing innovative and sustainable mobility solutions, primarily operating in the automotive industry with a focus on propulsion systems for combustion, hybrid, and electric vehicles.

BorgWarner Settles VAT Refund Lawsuit with PHINIA

BorgWarner Inc. settled a lawsuit with PHINIA Inc. on October 15, 2025, regarding VAT refunds, resulting in a $78 million payment agreement. The settlement led to a net $38 million charge for BorgWarner in Q3 2025, impacting its financials but not reflective of ongoing operations.

The most recent analyst rating on (BWA) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on BorgWarner stock, see the BWA Stock Forecast page.

BorgWarner Reports Strong Q2 2025 and Raises Guidance

BorgWarner Inc. is a global leader in providing innovative mobility solutions, primarily in the automotive sector, with a focus on accelerating the transition to eMobility. In its latest earnings report, BorgWarner announced a modest increase in net sales for the second quarter of 2025, alongside a significant rise in light vehicle eProduct sales. The company also reported an improved operating margin and increased its guidance for the full year. Key financial highlights include a 1% increase in net sales to $3.638 billion and adjusted net earnings per diluted share of $1.21. BorgWarner has also expanded its share repurchase program and increased its quarterly dividend by 55%. The company secured several new business awards, including contracts for turbochargers and electric vehicle components, which are expected to support long-term growth. Looking ahead, BorgWarner has raised its 2025 sales guidance, anticipating net sales between $14.0 billion and $14.4 billion, driven by higher industry production expectations and favorable foreign exchange impacts.

BorgWarner’s Earnings Call: Strong Growth Amid Challenges

BorgWarner Inc. recently held its earnings call, revealing a generally positive sentiment driven by strong performance in eProduct sales, robust margins, and significant shareholder returns. Despite facing challenges in the CV battery segment and tariff headwinds, the company’s achievements suggest a promising growth trajectory.

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.

The most recent analyst rating on (BWA) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on BorgWarner stock, see the BWA Stock Forecast page.