BorgWarner BWA
United StatesConsumer Cyclical · Auto PartsUSD
81.27 USD (+30.3%)
15 analysts
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BorgWarner is a global supplier of automotive components and systems, focused on propulsion technologies (turbochargers, transmissions) and the transition to electrification (e-motors, inverters, batteries).
Key points
from its scores- ✓Good share-price trend9.4
- ✓Very solid balance sheet7.0
- !Average business quality5.2
- !Modest dividend5.6
- !Risks to watch5.6
AI analysis
bottom line, main risk, context and newsThe forward valuation is reasonable and the balance sheet is solid, but the gross margin and ROE limit the potential for a near-term re-rating.
BorgWarner has a healthy balance sheet (net debt 0.79x EBITDA) and an attractive forward valuation (P/E 10.53, FCF yield 8.40%), with 30.1% earnings growth reflecting the momentum of its electrification portfolio, although its gross margin (19.32%) and ROE (8.06%) are modest for the sector.
The main risk is the execution of its transition to electric vehicles in an environment of increasing competition and potential demand slowdown, which could compress margins and fail to deliver expected growth.
Context and risks
BorgWarner has no material exposure to current macro factors. Its low net debt (0.79x EBITDA) insulates it from the rise in rates, and its auto parts business does not depend on oil or gas as a primary input. The main risk is sectoral: the transition to electric vehicles, which is already reflected in its strategy and valuation.
Is BorgWarner stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 19% above the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 31.2 | 17.8 | +75% |
| EV / EBITDA | 7.1 | 11.2 | −37% |
| Price / book | 2.3 | 2.9 | −21% |
| Price / sales | 0.9 | 1.3 | −29% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.8 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 81.27 USD, +30.3% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 5.2 (sector 5.7), Growth 6.1 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 31.2
- Forward P/E
- 10.5
- EV / EBITDA
- 7.1
- Price / book
- 2.3
- Price / sales
- 0.9
- PEG
- 0.34
- Market cap
- 12.7B USD
- Enterprise value
- 14.5B USD
Profitability
- ROE
- 8.1%
- ROA
- 6.3%
- ROIC (approx.)
- 15.8%
- Gross margin
- 19.3%
- Operating margin
- 10.6%
- Net margin
- 2.9%
- Free cash flow
- 1.1B USD
- FCF yield
- 8.4%
- Cash conversion
- 52%
Solvency
- Total debt
- 4.1B USD
- Net debt
- 1.6B USD
- Cash
- 2.4B USD
- EBITDA
- 2.0B USD
- Net debt / EBITDA
- 0.79
- Debt / equity
- 70.11
- Current ratio
- 2.13
- Quick ratio
- 1.66
Growth
- Revenue growth
- +0.3%
- Earnings growth
- +30.1%
- EPS (TTM)
- 2.00 USD
- EPS (forward)
- 5.92 USD
Dividend
- Dividend yield
- 1.1%
- Payout
- 34.0%
Risk and market
- Beta
- 1.14
- Analyst consensus
- Buy (15)
- Target price
- 81.27 USD
- 52-week range
- 40.50 – 78.82
Recent news
All BWA news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about BorgWarner
Is BorgWarner stock cheap or expensive?
On P/E and EV / EBITDA, it trades 19% above the Consumer Cyclical median on average. Valuation score: 6.8 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 81.27 USD, +30.3% versus the price. This is not investment advice.
What score does BorgWarner get on MeridIAn Screener?
It scores 6.3 out of 10, rank 700 of 2,130 (better than 63% of the companies analysed). Its strongest category is Momentum (9.4) and its weakest, Quality / Moat (5.2). Analysis of 08/10/2026.
What is BorgWarner's P/E ratio?
Its P/E is 31.2: the share price equals 31.2 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 10.5.
How much is BorgWarner worth on the stock market?
Its market capitalisation is 12.7B USD and its enterprise value, debt included, is 14.5B USD.
How much debt does BorgWarner have?
Its net debt (debt minus cash) is 1.6B USD. That is 0.79 times its EBITDA; the Consumer Cyclical median is 1.91.
Does BorgWarner pay a dividend?
Yes: its dividend yield is 1.09% and it pays out 34% of its earnings.
How has BorgWarner stock performed over the last year?
It has risen 53.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 40.50 and 78.82 USD. Past performance does not guarantee future results.
What do analysts think of BorgWarner?
15 analysts cover it; their average recommendation is “Buy” and their average target is 81.27 USD (+30.3% versus the price). It is an estimate, not market data.