BorgWarner's net sales were flat in the first quarter, while organic growth fell 4.2% amid lower market production and top-line pressure in the battery energy systems segment. Underlying adjusted operating margin improved by 50 basis points to 10.5%, just below management’s full-year target range.
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
|
MGA
|
|---|---|---|
Price/Earnings (Normalized) | 14.81 | 10.54 |
Price/Book Value | 2.80 | 1.54 |
Price/Sales | 1.11 | 0.44 |
Price/Cash Flow | 9.47 | 5.62 |
|
Metric
|
BWA
|
MGA
|
|---|---|---|
Quick Ratio | 1.65 | 0.82 |
Current Ratio | 2.13 | 1.22 |
Interest Coverage | 6.85 | 5.21 |
|
Metric
|
BWA
|
MGA
|
|---|---|---|
Return on Assets (Normalized) | 9.76% | 5.54% |
Return on Equity (Normalized) | 23.99% | 14.58% |
Return on Invested Capital (Normalized) | 14.05% | 9.57% |
|
1-Day Chart
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Morningstar Rating for Stocks
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United States