Skip to Content

BorgWarner Inc BWA

Morningstar Rating
$30.83 −0.32 (1.03%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

BorgWarner Earnings: Results and New 2024 Guidance Disappoint

Narrow-moat BorgWarner reported fourth-quarter 2023 EPS before special items of $0.90, $0.05 lower than the $0.95 FactSet consensus and $0.04 shy of the prior year. Revenue, pro forma for the spinoff of Phinia, rose by 6% to $3.5 billion from $3.3 billion a year ago but, excluding currency, acquisitions, and discontinued operations, organic revenue rose 4%, 5 percentage points less than a 9% increase in global light-vehicle production on new business, but offset by the United Auto Workers strike and delayed electric vehicle launches. The 5-star-rated shares of BorgWarner currently trade at a compelling 56% discount to our unchanged $72 fair value estimate.

Price vs Fair Value

BWA is trading at a 57% discount.
Price
$30.83
Fair Value
$67.00
Uncertainty
High
1-Star Price
$144.50
5-Star Price
$86.30
Economic Moat
Tntztgr
Capital Allocation
Sdjxzwl

Bulls Say, Bears Say

Bulls

Global clean air legislation enables BorgWarner's top-line growth to exceed worldwide growth in demand for light vehicles.

Bears

BorgWarner customers possess pricing leverage but may be more restrained in the exercise of that power, given suppliers' greater degree of customer diversity. However, contractual annual price reductions will continue to be the industry norm.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BWA is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$31.15
Day Range
$30.7031.25
52-Week Range
$29.5151.03
Bid/Ask
$30.64 / $31.09
Market Cap
$7.08 Bil
Volume/Avg
3.4 Mil / 2.8 Mil

Key Statistics

Price/Earnings (Normalized)
7.14
Price/Sales
0.51
Dividend Yield (Trailing)
1.62%
Dividend Yield (Forward)
1.43%
Total Yield
4.12%

Company Profile

BorgWarner is a Tier I auto-parts supplier with three operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, and cabin heaters. The drivetrain and battery systems group produces automatic transmission components, torque management products, battery heaters, battery charging, and battery modules. The e-propulsion segment makes e-motors, power electronics, and software and control modules. The company's largest customers are Ford and Volkswagen at 13% and 8% of 2022 revenue, respectively. Geographically, Europe accounted for 34% of 2022 revenue, while Asia and North America were 32% each.
Sector
Consumer Cyclical
Industry
Auto Parts
Stock Style Box
Small Value
Total Number of Employees
39,900

Competitors

Valuation

Metric
BWA
APTV
MGA
Price/Earnings (Normalized)
7.1416.1510.82
Price/Book Value
1.221.901.31
Price/Sales
0.511.110.36
Price/Cash Flow
4.859.925.30
Price/Earnings
BWA
APTV
MGA

Financial Strength

Metric
BWA
APTV
MGA
Quick Ratio
1.241.150.72
Current Ratio
1.651.721.11
Interest Coverage
14.105.309.47
Quick Ratio
BWA
APTV
MGA

Profitability

Metric
BWA
APTV
MGA
Return on Assets (Normalized)
5.84%14.60%4.91%
Return on Equity (Normalized)
13.81%33.67%13.23%
Return on Invested Capital (Normalized)
8.58%20.44%8.76%
Return on Assets
BWA
APTV
MGA
See how this stock stacks up to its competitors with Morningstar Investor

Auto Parts Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
DNZOF
Denso CorpMsnwgs$54.0 Bil
APTV
Aptiv PLCZrrzblh$21.9 Bil
MGA
Magna International IncHjq$15.6 Bil
LKQ
LKQ CorpZjtfv$13.9 Bil
ALV
Autoliv IncThkfy$9.7 Bil
GNTX
Gentex CorpGndtkt$8.6 Bil
LEA
Lear CorpVwpfgzq$7.9 Bil
ALSN
Allison Transmission Holdings IncQcdxst$6.8 Bil
ADNT
Adient PLCZvjndlj$3.0 Bil

Sponsor Center