Is BorgWarner Stock a Good Investment?
BorgWarner Investment Advice | BWA |
- Examine BorgWarner's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research BorgWarner's leadership team and their track record. Good management can help BorgWarner navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Parts & Equipment space and any emerging trends that could impact BorgWarner's business and its evolving consumer preferences.
- Compare BorgWarner's performance and market position to its competitors. Analyze how BorgWarner is positioned in terms of product offerings, innovation, and market share.
- Check if BorgWarner pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about BorgWarner's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in BorgWarner stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if BorgWarner is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine BorgWarner Stock
Researching BorgWarner's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.19. Some equities with similar Price to Book (P/B) outperform the market in the long run. BorgWarner has Price/Earnings To Growth (PEG) ratio of 1.21. The entity last dividend was issued on the 3rd of March 2025. The firm had 1136:1000 split on the 5th of July 2023.
To determine if BorgWarner is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding BorgWarner's research are outlined below:
| BorgWarner generated a negative expected return over the last 90 days | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from simplywall.st: This Insider Has Just Sold Shares In BorgWarner |
BorgWarner Quarterly Good Will |
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BorgWarner uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in BorgWarner. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to BorgWarner's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact BorgWarner's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises BorgWarner's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2002-02-04 | 2001-12-31 | 0.09 | 0.1 | 0.01 | 11 | ||
1996-04-23 | 1996-03-31 | 0.08 | 0.07 | -0.01 | 12 | ||
2003-07-21 | 2003-06-30 | 0.19 | 0.21 | 0.02 | 10 | ||
2000-10-23 | 2000-09-30 | 0.14 | 0.12 | -0.02 | 14 | ||
1997-02-06 | 1996-12-31 | 0.13 | 0.15 | 0.02 | 15 | ||
2009-10-28 | 2009-09-30 | 0.05 | 0.08 | 0.03 | 60 | ||
2006-10-27 | 2006-09-30 | 0.22 | 0.19 | -0.03 | 13 | ||
2010-10-27 | 2010-09-30 | 0.32 | 0.36 | 0.04 | 12 |
BorgWarner Target Price Consensus
BorgWarner target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. BorgWarner's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 18 | Strong Buy |
Most BorgWarner analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand BorgWarner stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of BorgWarner, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationBorgWarner Target Price Projection
BorgWarner's current and average target prices are 30.22 and 39.42, respectively. The current price of BorgWarner is the price at which BorgWarner is currently trading. On the other hand, BorgWarner's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
BorgWarner Market Quote on 17th of February 2025
Target Price
Analyst Consensus On BorgWarner Target Price
BorgWarner Analyst Ratings
BorgWarner's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about BorgWarner stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of BorgWarner's financials, market performance, and future outlook by experienced professionals. BorgWarner's historical ratings below, therefore, can serve as a valuable tool for investors.Know BorgWarner's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as BorgWarner is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading BorgWarner backward and forwards among themselves. BorgWarner's institutional investor refers to the entity that pools money to purchase BorgWarner's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Turtle Creek Asset Management Inc. | 2024-12-31 | 4.1 M | Earnest Partners Llc | 2024-09-30 | 3.9 M | American Century Companies Inc | 2024-12-31 | 3.7 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 3.4 M | Nuveen Asset Management, Llc | 2024-09-30 | 3 M | Hotchkis & Wiley Capital Management Llc | 2024-09-30 | 2.8 M | Sei Investments Co | 2024-12-31 | 2.5 M | Millennium Management Llc | 2024-09-30 | 2.5 M | Silvercrest Asset Management Group Llc | 2024-09-30 | 2.3 M | Vanguard Group Inc | 2024-12-31 | 25.6 M | Blackrock Inc | 2024-09-30 | 15.9 M |
BorgWarner's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 6.61 B.Market Cap |
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BorgWarner's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.05 | |
| Return On Capital Employed | 0.05 | 0.08 | |
| Return On Assets | 0.02 | 0.03 | |
| Return On Equity | 0.06 | 0.08 |
Determining BorgWarner's profitability involves analyzing its financial statements and using various financial metrics to determine if BorgWarner is a good buy. For example, gross profit margin measures BorgWarner's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of BorgWarner's profitability and make more informed investment decisions.
BorgWarner's Earnings Breakdown by Geography
Please note, the presentation of BorgWarner's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, BorgWarner's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of BorgWarner's management manipulating its earnings.
Evaluate BorgWarner's management efficiency
BorgWarner has Return on Asset of 0.0567 % which means that on every $100 spent on assets, it made $0.0567 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0727 %, implying that it generated $0.0727 on every 100 dollars invested. BorgWarner's management efficiency ratios could be used to measure how well BorgWarner manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.05. The current year's Return On Capital Employed is expected to grow to 0.08. At present, BorgWarner's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Total Current Assets is expected to grow to about 6.8 B, whereas Non Current Assets Total are forecasted to decline to about 4.5 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 25.53 | 26.81 | |
| Tangible Book Value Per Share | 12.86 | 13.51 | |
| Enterprise Value Over EBITDA | 7.08 | 5.19 | |
| Price Book Value Ratio | 1.28 | 1.33 | |
| Enterprise Value Multiple | 7.08 | 5.19 | |
| Price Fair Value | 1.28 | 1.33 | |
| Enterprise Value | 9.6 B | 10 B |
Effective management at BorgWarner has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Basic technical analysis of BorgWarner Stock
As of the 17th of February 2025, BorgWarner shows the Mean Deviation of 1.39, standard deviation of 1.69, and Risk Adjusted Performance of (0.06). BorgWarner technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.BorgWarner's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific BorgWarner insiders, such as employees or executives, is commonly permitted as long as it does not rely on BorgWarner's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases BorgWarner insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
BorgWarner's Outstanding Corporate Bonds
BorgWarner issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. BorgWarner uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most BorgWarner bonds can be classified according to their maturity, which is the date when BorgWarner has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| BORGWARNER INC Corp BondUS099724AL02 | View | |
| BORGWARNER INC 3375 Corp BondUS099724AJ55 | View | |
| BORGWARNER INC 4375 Corp BondUS099724AH99 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand BorgWarner's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing BorgWarner's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.32) | |||
| Mean Deviation | 1.39 | |||
| Coefficient Of Variation | (1,082) | |||
| Standard Deviation | 1.69 | |||
| Variance | 2.84 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.17) | |||
| Treynor Ratio | (0.33) | |||
| Maximum Drawdown | 7.0 | |||
| Value At Risk | (2.98) | |||
| Potential Upside | 2.19 | |||
| Skewness | (0.39) | |||
| Kurtosis | (0.61) |
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.32) | |||
| Mean Deviation | 1.39 | |||
| Coefficient Of Variation | (1,082) | |||
| Standard Deviation | 1.69 | |||
| Variance | 2.84 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.17) | |||
| Treynor Ratio | (0.33) | |||
| Maximum Drawdown | 7.0 | |||
| Value At Risk | (2.98) | |||
| Potential Upside | 2.19 | |||
| Skewness | (0.39) | |||
| Kurtosis | (0.61) |
Consider BorgWarner's intraday indicators
BorgWarner intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of BorgWarner stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
BorgWarner Corporate Filings
F4 | 12th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 6th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 23rd of January 2025 Other Reports | ViewVerify | |
13A | 14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
BorgWarner Stock media impact
Far too much social signal, news, headlines, and media speculation about BorgWarner that are available to investors today. That information is available publicly through BorgWarner media outlets and privately through word of mouth or via BorgWarner internal channels. However, regardless of the origin, that massive amount of BorgWarner data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of BorgWarner news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of BorgWarner relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to BorgWarner's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive BorgWarner alpha.
BorgWarner Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards BorgWarner can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
BorgWarner Historical Investor Sentiment
Investor biases related to BorgWarner's public news can be used to forecast risks associated with an investment in BorgWarner. The trend in average sentiment can be used to explain how an investor holding BorgWarner can time the market purely based on public headlines and social activities around BorgWarner. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
BorgWarner's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for BorgWarner and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average BorgWarner news discussions. The higher the estimate score, the more favorable the investor's outlook on BorgWarner.
BorgWarner Maximum Pain Price Across May 16th 2025 Option Contracts
BorgWarner's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of BorgWarner close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of BorgWarner's options.
BorgWarner Corporate Directors
| John McKernan | Independent Director | Profile | |
| Sara Greenstein | Independent Director | Profile | |
| David Haffner | Independent Director | Profile | |
| Deborah McWhinney | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in BorgWarner. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. For information on how to trade BorgWarner Stock refer to our How to Trade BorgWarner Stock guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of BorgWarner. If investors know BorgWarner will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about BorgWarner listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 3.909 | Dividend Share 0.44 | Earnings Share 1.63 | Revenue Per Share | Quarterly Revenue Growth (0.02) |
The market value of BorgWarner is measured differently than its book value, which is the value of BorgWarner that is recorded on the company's balance sheet. Investors also form their own opinion of BorgWarner's value that differs from its market value or its book value, called intrinsic value, which is BorgWarner's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because BorgWarner's market value can be influenced by many factors that don't directly affect BorgWarner's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between BorgWarner's value and its price, as these two are different measures arrived at by various means. Investors typically determine if BorgWarner is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BorgWarner's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.