BorgWarner Inc (BWA) Quote - XNYS | Morningstar

Skip to Content

Is it the right time to buy or sell?

Find out with Morningstar Premium

Is it the right time to buy or sell?

Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

BorgWarner Q3 Results Take Chip Crunch Hit, Lowers 2021 Guidance; Maintaining $69 FVE

Senior Equity Analyst Richard Hilgert

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert | Nov 3, 2021

Narrow-moat rated BorgWarner reported third-quarter earnings per share before special items of $0.80, beating the $0.72 FactSet consensus estimate by $0.08 but $0.08 lower than the $0.88 reported last year. Consolidated revenue jumped almost 35% to $3.4 billion, compared with $2.5 billion reported in the COVID-19-pummeled year-ago period. Thanks to the chip crunch hit, organic revenue excluding the Delphi acquisition and currency effect declined 7%, outperforming a 22% plunge in global light vehicle production by 15 percentage points. We maintain our investment thesis that BorgWarner will increase revenue at above-market rates as automakers rely on its products that support reduced emissions and vehicle electrification.

Read Full Analysis

Company Profile

Business Description

BorgWarner is a Tier I auto-parts supplier with four operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, cabin heaters, battery heaters, and battery charging. The e-propulsion and drivetrain group produces e-motors, power electronics, control modules, software, automatic transmission components, and torque management products. The two remaining operating segments are the eponymous fuel injector and aftermarket groups. The company's largest customers are Ford and Volkswagen at 13% and 11% of 2020 revenue, respectively. Geographically, Europe accounted for 35% of 2020 revenue, while Asia was 34% and North America was 30%.

Contact

3850 Hamlin Road
Auburn Hills, MI, 48326

T +1 248 754-9200

ir@borgwarner.com

www.borgwarner.com

Sector Consumer Cyclical

Industry Auto Parts

Most Recent Earnings Sep 30, 2021

Fiscal Year End Dec 31, 2020

Stock Type Cyclical

Employees 49,700

Related

Stock Strategist Industry Reports

Demand for Electric Vehicles Accelerates

Cost and performance parity will drive consumer interest.

4 Stocks to Watch in the Electric Vehicle Supply Chain

Automakers aren’t the only ones poised to benefit from EV growth.

15 More Undervalued Stocks with Momentum

These narrow-moat names are all up twice as much as the market this year, yet remain undervalued by our metrics.

Susan Dziubinski

The Winners of the New Definition of Infrastructure

Depending on which broader infrastructure projects take shape, numerous companies could see increased demand.

3 Attractive Electric Vehicle Plays That Aren't Tesla

These firms stand to benefit from increased adoption of electric vehicles--and they're undervalued.

Stock Strategist Industry Reports

What We Expect for the Automotive Industry After COVID-19

A look at the automakers and suppliers that are best positioned to benefit from the industry's recovery.

Richard Hilgert

24 Stocks for 2030

We think these companies are well positioned to benefit from one of five key trends during the next decade.

Susan Dziubinski

Stock Strategist Industry Reports

Auto Demand Hits a Pothole

The damage won't be fixed overnight, but we don't believe it's structural.

Richard Hilgert

Stock Strategist Industry Reports

Moats, Motors, and Markets in 2020

Our analysts offer their annual global auto overview, forecast, and actionable ideas.

Stock Strategist Industry Reports

On the Road to Vehicle Electrification

Here are the auto-parts suppliers that should benefit.

Richard Hilgert

Investment Opportunities Abound in Electric Vehicles

These are our picks in supply chain and ancillary industries.

Advisor Insights

Hitting the Road: A Q&A on Electric Vehicle Adoption

Morningstar’s Seth Goldstein on what’s driving adoption worldwide and which companies stand to benefit.

Investing Insights: Jack Bogle and Earnings Results

Our analysts discuss Netflix, IBM, and Johnson & Johnson earnings, plus electric vehicles and dividend ETFs on this week's episode.

Morningstar.com

Investing Specialists

Morningstar Runs the Numbers

We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended Oct. 19.

Morningstar.com

Where to Find Opportunities in Electric Vehicles

Our top picks for industries that will benefit most from growing electric vehicle adoption are lithium producers and utilities.

Investing Specialists

Morningstar Runs the Numbers

We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended Oct. 12.

Morningstar.com

Stock Strategist Industry Reports

Climate Report Bolsters Our Outlook for Electric Vehicles

We expect EV sales in China and the EU will accelerate, driving above-consensus global adoption rates.

Quarter-End Insights

Industrials: Worldwide Growth Is Resilient, But Valuations Look Full

Despite a general premium to our fair value estimates in the sector, we still see several opportunities for investors.

Stock Strategist

BorgWarner's Moat Propels Growth

The company is both a beneficiary and an enabler of global clean-air regulations.

Richard Hilgert

Hybrid Vehicle Demand Should Drive Growth for BorgWarner

We think the Street is misunderstanding the growth potential of this narrow-moat automotive systems manufacturer.

Richard Hilgert

Transparency is our policy. Learn how it impacts everything we do.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.