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Borgwarner Inc

Borgwarner Inc

BWA
$66.65USD↑+1.46%+0.96 today

MARKET CAP

13.6B

P/E (TTM)

38.8x

FWD P/E

—

DAY RANGE

$66 – $67

52W RANGE

$41
$79

AI Summary

Stalk
StalkMedium

The stock has formed a Bullish Pivot Point signaling a shift toward upward mean reversion. While long- and medium-term bias remain bullish, short-term timing is neutral as price consolidates around rising short-term EMAs slightly below the pivot resistance zone. We will stalk for either a pullback into the 9/20/50 EMA confluence near 65.50–65.80 or a clear reclaim and acceptance above the pivot zone around 66.50–67.00 before buying.

  • ↑Q2 revenue $3.6B; adjusted EPS rose 17% YoY to $1.43
  • ↑Free cash flow $492M funded $134M in buybacks and dividends
  • ↓Battery energy segment organic sales forecast to decline 1.5%–3.5% YoY
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

BorgWarner Inc. (NYSE: BWA) is a global leader in clean and efficient mobility solutions, specializing in manufacturing technology-driven systems for combustion, hybrid, and electric vehicles. The company operates primarily in the automotive sector, focusing on advanced technologies aimed at enhancing performance and sustainability in powertrains. BorgWarner’s manufacturing capabilities extend from traditional combustion systems to electrified powertrains, positioning it as a crucial player in the industry’s shift towards electrification and sustainable solutions.

Bull says

  • ↑Q2 revenue $3.6B; adjusted EPS rose 17% YoY to $1.43
  • ↑Free cash flow $492M funded $134M in buybacks and dividends
  • ↑Share repurchase authorization increased to $1.35B (~10% of market cap)
  • ↑Operating margin expanded to 11.3%, up 100bps YoY
  • ↑Secured seven strategic eTurbo awards, boosting electrified powertrain pipeline
  • ↑Strong momentum and above-average fundamental scores support investor sentiment

Bear says

  • ↓Battery energy segment organic sales forecast to decline 1.5%–3.5% YoY
  • ↓Adjusted operating margin guidance tight at 10.7%–10.9%, pressured by higher R&D spending
  • ↓Negative earnings yield and low profitability factors heighten valuation risk
  • ↓Weak growth factor signals limited revenue expansion potential
  • ↓Low hedge-fund ownership suggests institutional reluctance
  • ↓Shifting EV incentives and demand dynamics could undermine forecasts

Investment themes with BWA

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q4 2023 · Mgmt. Guidance

Updated 02-06-2025neutral

Transcript signals

Bull points

  • With approximately $14 billion in sales, we delivered more than 12% organic growth in 2023.
  • During the course of '23, we adjusted our eProducts top line to reflect what we saw in the marketplace. It resulted in a slightly lower top line for the Company but higher margins. This is a good example of the product portfolio resilience that exists at BorgWarner.
  • $565 million of free cash flow in 2023. This free cash flow supported the $177 million of share repurchases that we executed during the fourth quarter as well as the closing of the Eldor acquisition.

Bear points

  • Our challenging forward progress continues on multiple fronts.
  • And what we needed to do is make sure we're managing that P&L holistically, pricing cost restructuring to make sure that we would sustain that margin profile over time.
  • reason why our growth wasn't stronger is that we were negatively impacted in the quarter by customer launch and ramp up the BEVs key eProduct programs in China, lower customer volumes on a North American EV program and lost sales due to the UAW strike in North America
Read full transcript analysis ›