BorgWarner Inc.

Valuation Analysis

About the Company

BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through the Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems segments. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, and battery cooling systems. The company also provides chain systems and variable camshaft phasing products; friction and mechanical products for automatic transmissions, including dual clutch modules, friction clutch modules, electromagnetic clutches, friction and separator plates, transmission bands, torque converter clu

BorgWarner Inc. Stock at a Glance

BorgWarner Inc. (BWA) is currently trading at $74.51 with a market capitalization of $15.3B. The trailing P/E ratio stands at 43.32x, with a forward P/E of 12.71x. The 52-week range spans from $32.24 to $78.82; the current price is 5.5% below the yearly high. Year-over-year revenue growth stands at +0.5%. The net profit margin stands at 2.53%.

💰 Dividend

BorgWarner Inc. pays an annual dividend of $0.68 per share, representing a yield of 0.91%. The payout ratio stands at 36.05%.

📊 Analyst Rating

15 analysts rate BorgWarner Inc. (BWA) on consensus: Buy. The average price target is $76.33, implying +2.45% from the current price. Analyst price targets range from $48.00 to $95.00.

BorgWarner Inc.: The Investment Case in Detail

BorgWarner Inc. (BWA) operates in the Consumer Cyclical — specifically Auto Parts — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 61.1% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base.

The Bear Case

Revenue growth has slowed to just 0.5%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 2.53%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.64, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 8.77x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 12.71x is meaningfully below the trailing 43.32x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 90.7% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (5.65%).

Trading Data

💵 Dividend Info

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