BorgWarner reported a 3% decline in third-quarter sales and a 1% decline in adjusted operating income as it continues to pursue cost efficiencies. The company slightly raised guidance for full-year diluted earnings per share due to share repurchases and a lower effective tax rate.
Among a risk-averse customer base, BorgWarner’s decades of trustworthy product delivery has created a strong brand moat source that we believe will carry over into the supply of EV parts.
Increasing exposure to Chinese OEMs can impair BorgWarner's switching cost moat source over time, given the OEMs' greater efficiency, faster pace of innovation, and shorter contracts.
|
Metric
|
BWA
|
LEA
|
MGA
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.88 | 8.52 | 9.71 |
Price/Book Value | 1.86 | 1.21 | 1.47 |
Price/Sales | 0.76 | 0.26 | 0.43 |
Price/Cash Flow | 6.42 | 5.31 | 5.22 |
|
Metric
|
BWA
|
LEA
|
MGA
|
|---|---|---|---|
Quick Ratio | 1.04 | 0.73 | 0.77 |
Current Ratio | 1.41 | 1.18 | 1.14 |
Interest Coverage | 8.84 | 8.77 | 6.93 |
|
Metric
|
BWA
|
LEA
|
MGA
|
|---|---|---|---|
Return on Assets (Normalized) | 7.63% | 4.32% | 6.31% |
Return on Equity (Normalized) | 18.69% | 12.99% | 16.55% |
Return on Invested Capital (Normalized) | 11.07% | 9.18% | 10.93% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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United States