# BorgWarner Inc. (BWA) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Consumer Cyclical / Auto Parts. Price $51.71, market value $10.4 billion.

## Valuation
- **P/E (trailing): 21.9×** (5-yr avg 18.8×, 3-yr avg 22.9×). BorgWarner Inc. trades at 21.9× trailing earnings, close to its own five-year average of 18.8×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 8.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.8×**. The shares trade at 1.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 10.3×**. Enterprise value is 10.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 11.1%** (5-yr avg 10.0%). Free cash flow equals 11.1% of the market value, in line with its five-year average of 10.0%. Above 5% is generally attractive.
- **Earnings yield: 4.6%**. The inverse of the P/E: 4.6% of the price is earned each year.

## Profitability
- **Gross margin: 19.6%**. BorgWarner Inc. keeps 19.6% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 5.4%**. 5.4% of revenue is left after running the business.
- **Net margin: 1.9%**. 1.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 5.1%**. 5.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.5%**. Return on all capital, debt included, is 6.5%.
- **Return on assets: 3.5%**. Each dollar of assets produces 3.5% of profit.

## Growth
- **Revenue growth (1 yr): 1.6%** (3-yr 4.3%/yr, 5-yr 7.1%/yr). Revenue grew 1.6% over the last year, against 7.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -14.7%** (3-yr -31.5%/yr, 5-yr -11.4%/yr). Earnings per share fell 14.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 7.6%/yr**. Free cash flow has compounded at 7.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.72**. Debt is 0.72 times equity, moderate leverage.
- **Current ratio: 2.07** (quick 2.07). Current assets cover the next year's liabilities 2.07 times.
- **Altman Z-score: 2.79**. A Z-score of 2.79 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.32%** ($0.68 per share, trailing). BorgWarner Inc. yields 1.32%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 43%** (12% of free cash flow). 43% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): -1.3%/yr** (1-yr 27.3%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: buy** (15 analysts). 15 analysts cover BorgWarner Inc.; the consensus is buy, with an average price target of $79.07 (+53% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 21.6%** (YTD 15.5%, 3-mo -18.3%). The shares are up 21.6% over twelve months including dividends.
- **From 52-week high: -34.4%** (27.0% above the low). Trading 34% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 25**. An RSI of 25 is oversold; bounces are common, but oversold can stay oversold in a real decline.
- **Beta (1 yr): 1.27** (volatility 42%). Beta of 1.27 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BWA · Page: https://foliofundamentals.com/stocks/bwa

Not investment advice.