BorgWarner (BWA) AI Stock Analysis

• Market Cap: $9.55B
• Dividend Yield: 1.25%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 71.6
• Beta (1Y): 0.70
• 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: 2,534,028
• 30 Day Avg. Volume: 2,565,407
• 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: 1.21
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 8.86
• 1Y Price Target: $50.50
• Price Target Upside: 11.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.71
• Revenue Forecast (FY): $14.22B

• Rating: 65 Neutral
• Price Target: $45.00 ▼(-0.35% Downside)

BorgWarner's overall stock score reflects a stable financial position with strong cash flow generation and increased financial guidance. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential bearish momentum. The company's strategic focus on new business awards and shareholder returns is a positive, but challenges in profitability and operational efficiency remain.

Positive Factors

Strong Free Cash Flow

The significant increase in free cash flow indicates strong cash generation ability, enhancing financial flexibility and supporting future investments.

New Business Awards

Securing new business awards demonstrates the company's competitive advantage and strong market position, driving future revenue growth.

Increased Financial Guidance

Raising financial guidance reflects management's confidence in operational performance and strategic initiatives, supporting long-term growth.

Negative Factors

Decline in Battery and Charging Sales

A decline in battery and charging sales indicates challenges in a key growth segment, potentially impacting future revenue and market positioning.

Cyber-Related Shutdown Impact

Cybersecurity issues affecting operations highlight vulnerabilities that could disrupt business continuity and erode customer trust.

Semiconductor Supply Concerns

Persistent semiconductor supply issues pose a risk to production and sales, potentially hindering growth and operational efficiency.

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 its automotive components and systems. Key revenue streams include the supply of turbochargers, electric and hybrid vehicle technologies, and transmission systems to original equipment manufacturers (OEMs) in the automotive industry. The company also earns revenue from aftermarket products and services, which provide maintenance and replacement parts for vehicles. Significant partnerships with major automakers and ongoing investments in research and development for innovative propulsion solutions further enhance its market position and contribute to its earnings. Additionally, the transition towards electrification and sustainability in the automotive sector presents growth opportunities for BorgWarner, allowing it to capitalize on emerging trends and technologies.

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	14.08B	14.20B	12.63B	14.84B	10.16B
Gross Profit	2.62B	2.61B	2.57B	2.37B	2.86B	1.91B
EBITDA	1.30B	1.32B	1.67B	1.56B	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	1.44B	681.00M	477.00M	948.00M	638.00M	723.00M
Operating Cash Flow	1.71B	1.35B	1.31B	1.57B	1.31B	1.22B
Investing Cash Flow	-389.00M	-603.00M	-694.00M	-1.48B	-1.43B	-906.00M
Financing Cash Flow	-1.17B	-167.00M	-419.00M	-511.00M	319.00M	437.00M

BorgWarner Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 45.16 is above the 20-day moving average (MA) of 43.27, above the 50-day MA of 43.37, and above the 200-day MA of 36.78, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 56.63 is Neutral, neither overbought nor oversold. The STOCH value of 78.71 is Neutral, 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	78 Outperform	$9.09B	12.35	31.09%	2.60%	0.84%	26.17%
LEA	75 Outperform	$6.04B	14.27	8.96%	2.63%	-1.90%	-13.86%
ALSN	71 Outperform	$8.18B	12.04	40.38%	1.10%	-4.21%	-0.45%
APTV	70 Outperform	$16.58B	61.61	3.25%	―	2.16%	-85.91%
BWA	65 Neutral	$9.55B	71.56	2.24%	1.25%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	58 Neutral	$2.67B	51.74	-4.82%	1.75%	-18.23%	―

BorgWarner Corporate Events

BorgWarner Declares Quarterly Cash Dividend

On November 12, 2025, BorgWarner‘s Board of Directors declared a quarterly cash dividend of $0.17 per share, payable on December 15, 2025, to stockholders of record as of December 1, 2025. This announcement reflects BorgWarner’s ongoing commitment to returning value to its shareholders, reinforcing its stable financial position and strategic focus in the mobility industry.

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.