# BorgWarner Inc. (BWA) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Auto Components. Price $67.54, market value $13.8 billion.

## Valuation
- **P/E (trailing): 33.3×** (5-yr avg 18.8×, 3-yr avg 22.9×). BorgWarner Inc. trades at 33.3× trailing earnings, well above its own five-year average of 18.8×: investors are paying up relative to the company's past. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 11.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.4×**. The shares trade at 2.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 12.7×**. Enterprise value is 12.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 8.8%** (5-yr avg 10.0%). Free cash flow equals 8.8% of the market value, in line with its five-year average of 10.0%. Above 5% is generally attractive.
- **Earnings yield: 3.0%**. The inverse of the P/E: 3.0% of the price is earned each year.

## Profitability
- **Gross margin: 19.5%**. BorgWarner Inc. keeps 19.5% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 5.0%**. 5.0% of revenue is left after running the business, which leaves little cushion in a downturn.
- **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: 6.1%**. Return on all capital, debt included, is 6.1%.
- **Return on assets: 3.0%**. Each dollar of assets produces 3.0% 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: 3.04**. A Z-score of 3.04 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.01%** ($0.68 per share, trailing). BorgWarner Inc. yields 1.01%, 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 $79.67 (+18% 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): 55.5%** (YTD 50.7%, 3-mo -7.0%). The shares are up 55.5% over twelve months including dividends.
- **From 52-week high: -14.3%** (66.8% above the low). Trading 14% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 56**. An RSI of 56 is neutral.
- **Beta (1 yr): 1.21** (volatility 41%). Beta of 1.21 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.