BWA
BEARISH
$47.71
Live
BorgWarner Inc. · NYSE
Target $50.54
(+5.9%)
$24.4
52W Range
$48.93
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$10.32B
P/E
67.2
ROE
3.0%
Profit margin
0.9%
Debt/Equity
0.66
Dividend yield
1.42%
AI Analysis
AI-powered fundamental assessment
Confidence
78%
BorgWarner Inc. (BWA) exhibits weak fundamental health with a Piotroski F-Score of 4/9, indicating marginal stability, and lacks an Altman Z-Score, raising concerns about financial distress risk. Despite a bullish analyst recommendation and strong recent price performance (+50.3% 1Y), the company faces declining earnings (YoY EPS -33%), poor profit margins (0.95%), and negative insider sentiment. Valuation metrics are mixed, with a high trailing P/E of 67.20 but a low forward P/E of 9.28, suggesting expectations of recovery. However, deteriorating earnings trends, weak dividend strength, and significant insider selling undermine the bullish case.
Key Strengths
Forward P/E of 9.28 suggests market expects earnings recovery
Current Ratio of 2.05 and Quick Ratio of 1.60 indicate solid short-term liquidity
Debt/Equity of 0.66 is below sector average of 1.64, signaling conservative leverage
Price/Sales of 0.73 is below sector peers, potentially indicating undervaluation on revenue basis
Recent 1-year price return of +50.3% outperforms most peers
Key Risks
Piotroski F-Score of 4/9 indicates weak financial health and poor profitability trends
Earnings growth collapsing: YoY -30.1%, Q/Q -32.5%, with recent EPS surprise of -35.7%
Trailing P/E of 67.20 is extremely high, suggesting overvaluation relative to current earnings
Insider selling: $5.55M sold in last 6 months with zero buys, signaling lack of confidence
Dividend payout ratio of 70.42% is high given earnings volatility, threatening sustainability
AI Fair Value Estimate
Based on comprehensive analysis
$21.15
-55.7% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
34
Weak
30
25
45
32
40
AI Verdict
Overvalued with deteriorating fundamentals and high risk
Key drivers: Weak Piotroski F-Score, Collapsing earnings growth, High trailing P/E, Negative insider activity, Low ROE and profit margin
Confidence
80%
Value
30/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 9.28 is attractive
- Price/Sales of 0.73 is below sector
Watchpoints
- Trailing P/E of 67.20 is extremely elevated
- Graham Number ($21.15) implies current price ($47.71) is overvalued by 126%
- Intrinsic value estimate of $4.97 suggests deep overvaluation
Future
25/100
Ref Growth rates
Positives
- Forward P/E implies expected earnings improvement
Watchpoints
- Earnings growth YoY: -30.1%
- Q/Q Earnings Growth: -32.5%
- PEG Ratio unavailable due to negative growth
Past
45/100
Ref Historical trends
Positives
- Historically beat earnings estimates in 17 of last 25 quarters
- 5-year price return of +34.0% shows long-term appreciation
Watchpoints
- Last 4 quarters beat rate: only 1/4
- Recent EPS surprises deeply negative: -35.7%, -319.4%
- Earnings trend shows sharp deterioration since 2022
Health
32/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current Ratio of 2.05 indicates adequate liquidity
- Debt/Equity of 0.66 is below sector average
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- ROE of 3.04% is far below sector average of 7.56%
- Profit margin of 0.95% is barely above sector average despite higher P/E
Dividend
40/100
Ref Yield, Payout
Positives
- Dividend yield of 1.42% provides modest income
Watchpoints
- Dividend Strength score of 40/100 is weak
- Payout ratio of 70.42% is high given earnings volatility
- No visibility on 5-year average yield or growth
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$47.71
Analyst Target
$50.54
Upside/Downside
+5.9%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for BWA and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
BWA
BorgWarner Inc.
Primary
|
+34.0% | +26.8% | +50.3% | +33.5% | +5.0% | +1.1% |
|
BROS
Dutch Bros Inc.
Peer
|
+66.2% | +78.1% | +0.1% | +2.5% | -4.9% | -1.9% |
|
TXRH
Texas Roadhouse, Inc.
Peer
|
+74.6% | +53.9% | +2.6% | -8.8% | -3.7% | -2.0% |
|
DKNG
DraftKings Inc.
Peer
|
-65.6% | +11.7% | -34.9% | -42.2% | -9.2% | -7.2% |
|
GIL
Gildan Activewear Inc.
Peer
|
+81.8% | +87.9% | +37.4% | -4.8% | +6.3% | -3.1% |
BWA
BorgWarner Inc.
Primary
5Y
+34.0%
3Y
+26.8%
1Y
+50.3%
6M
+33.5%
1M
+5.0%
1W
+1.1%
BRO
Dutch Bros Inc.
Peer
5Y
+66.2%
3Y
+78.1%
1Y
+0.1%
6M
+2.5%
1M
-4.9%
1W
-1.9%
TXR
Texas Roadhouse, Inc.
Peer
5Y
+74.6%
3Y
+53.9%
1Y
+2.6%
6M
-8.8%
1M
-3.7%
1W
-2.0%
DKN
DraftKings Inc.
Peer
5Y
-65.6%
3Y
+11.7%
1Y
-34.9%
6M
-42.2%
1M
-9.2%
1W
-7.2%
GIL
Gildan Activewear Inc.
Peer
5Y
+81.8%
3Y
+87.9%
1Y
+37.4%
6M
-4.8%
1M
+6.3%
1W
-3.1%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
67.2
Forward P/E
9.28
PEG Ratio
N/A
P/B Ratio
1.7
P/S Ratio
0.73
EV/Revenue
0.86
EV/EBITDA
6.37
Market Cap
$10.32B
Profitability
Profit margins and return metrics
Profit Margin
0.95%
Operating Margin
8.41%
Gross Margin
18.37%
ROE
3.04%
ROA
5.44%
Growth
Revenue and earnings growth rates
Revenue Growth
+4.1%
Earnings Growth
-30.1%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-32.5%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.66
Moderate
Current Ratio
2.05
Strong
Quick Ratio
1.6
Excellent
Cash/Share
$10.15
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-11
$N/A
2025-10-30
$0.73
-35.7% surprise
2025-07-31
$1.03
-0.8% surprise
2025-05-07
$1.11
+13.9% surprise
Consumer Cyclical Sector Comparison
Comparing BWA against 386 companies in the Consumer Cyclical sector
(23 bullish, 133 neutral, 230 bearish)
P/E Ratio
67.2
This Stock
vs
33.98
Sector Avg
+97.7%
(Expensive)
Return on Equity (ROE)
3.04%
This Stock
vs
-43.92%
Sector Avg
-106.9%
(Below Avg)
Profit Margin
0.95%
This Stock
vs
-5.4%
Sector Avg
-117.5%
(Weaker)
Debt to Equity
0.66
This Stock
vs
1.51
Sector Avg
-56.4%
(Less Debt)
Revenue Growth
4.1%
This Stock
vs
28.42%
Sector Avg
-85.6%
(Slower)
Current Ratio
2.05
This Stock
vs
2.46
Sector Avg
-16.5%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
BWA
BorgWarner Inc.
|
BEARISH | $10.32B | 67.2 | 3.0% | 0.9% | $47.71 | |
|
BROS
Dutch Bros Inc.
|
NEUTRAL | $10.04B | 124.43 | 11.7% | 4.0% | $60.97 | Compare |
|
TXRH
Texas Roadhouse, Inc.
|
BEARISH | $10.62B | 26.4 | 29.0% | 6.9% | $161.05 | Compare |
|
DKNG
DraftKings Inc.
|
NEUTRAL | $10.72B | - | 0.5% | 0.1% | $21.62 | Compare |
|
GIL
Gildan Activewear Inc.
|
NEUTRAL | $10.72B | 22.51 | 15.7% | 11.0% | $57.86 | Compare |
BWA
BorgWarner Inc.
BEARISH
Mkt Cap
$10.3B
P/E
67.2
ROE
3.0%
Price
$47.71
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-12 | DEMMERLE STEFAN | Officer | Sale | 20,000 | $912,750 |
| 2025-11-04 | MCKENZIE ISABELLE | Officer | Sale | 3,200 | $141,552 |
| 2025-09-11 | MCKENZIE ISABELLE | Officer | Sale | 3,500 | $154,632 |
| 2025-09-05 | WENG VOLKER | Officer | Sale | 10,000 | $439,707 |
| 2025-09-05 | DEMMERLE STEFAN | Officer | Sale | 5,000 | $220,006 |
| 2025-09-04 | MCKENZIE ISABELLE | Officer | Sale | 3,000 | $130,350 |
| 2025-09-02 | MICHAS ALEXIS P | Director | Sale | 8,772 | $371,184 |
| 2025-08-28 | MCKENZIE ISABELLE | Officer | Sale | 2,690 | $115,470 |
| 2025-08-13 | DEMMERLE STEFAN | Officer | Sale | 20,000 | $792,218 |
| 2025-08-12 | MCKENZIE ISABELLE | Officer | Sale | 2,500 | $100,025 |
| 2025-08-04 | AARON CRAIG | Chief Financial Officer | Sale | 21,000 | $790,940 |
| 2025-08-04 | FARRELL PAUL ARTHUR | Officer | Sale | 11,416 | $429,602 |
| 2025-08-04 | MCKENZIE ISABELLE | Officer | Sale | 5,000 | $188,550 |
| 2025-08-04 | DEMMERLE STEFAN | Officer | Sale | 20,000 | $763,384 |
DEMMERLE STEFAN
Officer
2025-11-12
20,000 shares
·
$912,750
MCKENZIE ISABELLE
Officer
2025-11-04
3,200 shares
·
$141,552
MCKENZIE ISABELLE
Officer
2025-09-11
3,500 shares
·
$154,632
WENG VOLKER
Officer
2025-09-05
10,000 shares
·
$439,707
DEMMERLE STEFAN
Officer
2025-09-05
5,000 shares
·
$220,006
MCKENZIE ISABELLE
Officer
2025-09-04
3,000 shares
·
$130,350
MICHAS ALEXIS P
Director
2025-09-02
8,772 shares
·
$371,184
MCKENZIE ISABELLE
Officer
2025-08-28
2,690 shares
·
$115,470
DEMMERLE STEFAN
Officer
2025-08-13
20,000 shares
·
$792,218
MCKENZIE ISABELLE
Officer
2025-08-12
2,500 shares
·
$100,025
AARON CRAIG
Chief Financial Officer
2025-08-04
21,000 shares
·
$790,940
FARRELL PAUL ARTHUR
Officer
2025-08-04
11,416 shares
·
$429,602
MCKENZIE ISABELLE
Officer
2025-08-04
5,000 shares
·
$188,550
DEMMERLE STEFAN
Officer
2025-08-04
20,000 shares
·
$763,384
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
13 analysts
UBS
2026-01-14
Neutral
Neutral
Piper Sandler
2026-01-08
Overweight
Neutral
Wells Fargo
2025-12-09
Overweight
Overweight
Morgan Stanley
2025-12-08
Overweight
Equal-Weight
Evercore ISI Group
2025-11-24
Outperform
Outperform
JP Morgan
2025-10-20
Overweight
Overweight
Evercore ISI Group
2025-10-13
Outperform
Outperform
Barclays
2025-10-10
Overweight
Overweight
UBS
2025-10-06
Neutral
Neutral
Goldman Sachs
2025-09-29
Buy
Buy
Past News Coverage
Recent headlines mentioning BWA from our newsroom.
Newest → oldest
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