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BorgWarner (BWA) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Auto Parts
C
AverageMetricSide Score: 57/100
ProfitabilityProfit15/30
GrowthGrowth20/25
Balance SheetBalance11/25
Cash QualityCash11/20
Price & Volume
Market Cap $13.04B

BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through the Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems segments. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, and battery cooling systems. The company also provides chain systems and variable camshaft phasing products; friction and mechanical products for automatic transmissions, including dual clutch modules, friction clutch modules, electromagnetic clutches, friction and separator plates, transmission bands, torque converter clutches, one-way clutches, and torsional vibration dampers; hydraulic controls products for automatic transmissions, such as electro-hydraulic solenoids for standard and hydraulic systems, transmission solenoid modules and dual clutch hydraulic control modules; and torque management products comprising transfer cases and couplings; electronic limited slip differentials, electric torque vectoring products, and axle disconnect systems. In addition, it offers power electronics, including inverters, onboard chargers, DC/DC converters, and combination boxes; rotating electric machines comprising eMotors and generators; fully integrated drive modules consisting of inverters and gear reducers; and electronic controls, such as engine control units, transmission control units, battery management systems, propulsion controllers, and domain controllers. Further, the company provides battery and charging systems, including nickel manganese cobalt battery packs and lithium iron phosphate battery packs. BorgWarner Inc. was formerly known as Borg-Warner Automotive, Inc. The company was founded in 1928 and is headquartered in Auburn Hills, Michigan.

Moat Signals

Competitive analysis based on 64 quarters of fundamental data

Pricing Power

Weak Moat

Operating margins are under pressure, averaging 3.9%. The business may lack pricing power or face rising costs.'

Competitive Advantage

Moderate Moat

ROE is positive at ~6.7% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Moderate Moat

Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.

Risk Signals

Data-driven red flags and warnings across 64 quarters

Some Concerns

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

D/E ratio is 0.7 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Shares decreased 9.2% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$14.33B
2.3%
Q. Revenue
$3.53B
TTM EBITDA
$1.34B
15.3%
TTM Op. Income
$635.00M
30.1%
Q. Op. Income
$336.00M
TTM Net Income
$362.00M
25.3%
Q. Net Income
$242.00M
EPS
$1.18
Shares Out.
$205.30M
5.5%
$14.33B in TTM revenue grew 2.3% YoY, reaching $3.53B last quarter. TTM EBITDA of $1.34B and TTM operating income of $635.00M shows growth is flowing through. Net income of $362.00M TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
19.2%
5.4%
EBITDA Margin
13.6%
Op. Margin
9.5%
41.0%
Net Margin
6.8%
53.4%
Op. margin of 9.5% is up 2.8% YoY — cost efficiency is improving. Net margin at 6.8% and gross margin of 19.2% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
36.0x
P/S Ratio
0.9x
P/B Ratio
2.3x
At 36.0x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 0.9x and P/B of 2.3x provide additional context. The premium P/E is not backed by strong revenue growth — the stock may be overvalued.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$13.65B
Cash
N/A
Long-Term Debt
$3.88B
Book Value
$5.64B
D/E Ratio
0.7
Debt/EBITDA
8.1
With $13.65B in assets and $3.88B in long-term debt, the D/E of 0.7and book value of $5.64B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$152.00M
Free Cash Flow
$9.00M
124.3%
FCF Margin
0.1%
FCF / Net Income
0.0
FCF of $9.00M on $152.00M in operating cash flow. The FCF / Net Income ratio of 0.0x indicates partial cash conversion — earnings quality needs attention.

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