BorgWarner Inc. (BWA) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

BorgWarner Inc. (BWA) Consumer Business Overview

BorgWarner Inc. delivers diverse automotive solutions across combustion, hybrid, and electric vehicle markets. With a global presence and four operating segments, the company caters to original equipment manufacturers and the aftermarket, positioning itself amid evolving industry trends and technological advancements in vehicle propulsion systems.

What Is the Investment Thesis for BWA?

BorgWarner's focus on electric vehicle (EV) components positions it to capitalize on the growing EV market. While the company maintains a presence in traditional combustion engine technology, its strategic investments in electrification offer long-term growth potential. With a market capitalization of $13.5B and a dividend yield of 1.01%, BorgWarner presents a blend of value and growth prospects. Key catalysts include increasing demand for EVs and advancements in battery technology. Potential risks include the cyclical nature of the automotive industry and competition from other automotive suppliers. The company's ability to innovate and adapt to changing market dynamics will be crucial for sustained success.

Based on FMP financials and quantitative analysis

BWA Key Highlights

Market Cap of $13.5B reflects BorgWarner's significant presence in the automotive industry.

• P/E ratio of 40.43 indicates investor expectations for future earnings growth.
• Profit Margin of 2.5% suggests opportunities for operational efficiency improvements.
• Gross Margin of 18.9% reflects the company's ability to manage production costs.
• Dividend Yield of 1.01% provides a modest return for investors.

Who Are BWA's Competitors?

BWA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are BWA's Key Strengths?

Diversified product portfolio across combustion, hybrid, and electric vehicles.

• Global presence and established relationships with OEMs.
• Technological expertise in key automotive components.
• Strong aftermarket business.

What Are BWA's Weaknesses?

Reliance on the cyclical automotive industry.

• Profit margin lower than some competitors.
• Exposure to raw material price fluctuations.
• Potential impact from changing regulatory requirements.

What Could Drive BWA Stock Higher?

Increased demand for electric vehicle components as EV adoption accelerates.

• Expansion of aftermarket product offerings and distribution channels.
• Strategic partnerships and acquisitions to enhance technological capabilities.
• New product launches in advanced battery technology and e-propulsion systems.

What Are the Key Risks for BWA?

Insider selling — insiders were net sellers of roughly $20.3M recently.

• Cyclical downturns in the automotive industry affecting revenue.
• Intense competition from other automotive suppliers.
• Disruptions in the supply chain impacting production.
• Fluctuations in raw material prices increasing costs.
• Changing regulatory requirements affecting product development and compliance.

What Are the Growth Opportunities for BWA?

• Expansion in the Electric Vehicle Market: The increasing adoption of electric vehicles presents a significant growth opportunity for BorgWarner. As demand for EVs rises, the company can leverage its expertise in e-propulsion systems, battery modules, and power electronics to gain market share.
• Development of Advanced Battery Technology: Investing in the development of advanced battery technology can provide BorgWarner with a competitive edge. Improved battery performance, range, and charging times are critical factors driving EV adoption. By innovating in this area, BorgWarner can attract new customers and strengthen its position in the EV market. This includes battery packs, battery heaters, and battery charging solutions.
• Growth in the Aftermarket Segment: The aftermarket segment offers a stable source of revenue for BorgWarner. As vehicles age, the demand for replacement parts and maintenance services increases. By expanding its aftermarket product offerings and distribution channels, BorgWarner can capitalize on this trend. This segment includes fuel injection, electronics and engine management, maintenance, and test equipment and vehicle diagnostics.
• Strategic Acquisitions and Partnerships: Pursuing strategic acquisitions and partnerships can accelerate BorgWarner's growth. By acquiring companies with complementary technologies or market access, BorgWarner can expand its product portfolio and geographic reach. Collaborating with other industry players can also foster innovation and drive the development of new solutions. These partnerships can focus on areas such as battery technology, electric motors, and charging infrastructure.
• Penetration of Emerging Markets: Emerging markets such as China and India offer significant growth opportunities for BorgWarner. These markets are experiencing rapid economic growth and increasing vehicle ownership. By establishing a strong presence in these regions, BorgWarner can tap into new sources of revenue and expand its global footprint. This includes adapting products and services to meet the specific needs of these markets.

What Are BWA's Competitive Advantages?

• Technological expertise in both combustion engine and electric vehicle solutions.
• Strong relationships with original equipment manufacturers.
• Global presence and established distribution channels.
• Diversified product portfolio across multiple automotive segments.
• Innovation in advanced battery technology and e-propulsion systems.

What Does BWA Do?

BorgWarner Inc., incorporated in 1987 and headquartered in Auburn Hills, Michigan, has evolved into a key player in the automotive industry, providing solutions for combustion, hybrid, and electric vehicles. Originally known as Borg-Warner Automotive, Inc., the company has adapted to the changing demands of the automotive market. BorgWarner operates through four segments: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment offers a range of products including turbochargers, eBoosters, and thermal systems. The E-Propulsion & Drivetrain segment provides rotating electrical components and power electronics. The Fuel Injection segment develops gasoline and diesel fuel injection components. The Aftermarket segment sells products and services to independent aftermarket customers and original equipment service customers. BorgWarner serves original equipment manufacturers of light vehicles (passenger cars, SUVs, vans, and light trucks), commercial vehicles (medium-duty and heavy-duty trucks, and buses), and off-highway vehicles (agricultural and construction machinery, and marine applications), as well as tier one vehicle systems suppliers and the aftermarket.

What Products and Services Does BWA Offer?

• Develops and manufactures turbochargers for improved engine efficiency.
• Produces eBoosters and eTurbos for enhanced vehicle performance.
• Offers timing systems and emissions systems for combustion engines.
• Provides thermal systems for temperature management in vehicles.
• Manufactures gasoline and diesel fuel injection components and systems.
• Supplies rotating electrical components for electric vehicles.
• Offers power electronics and control modules for vehicle systems.
• Sells products and services to the automotive aftermarket.

How Does BWA Make Money?

• Sells automotive components and systems to original equipment manufacturers (OEMs).
• Provides aftermarket products and services to independent customers.
• Generates revenue through the sale of both combustion engine and electric vehicle solutions.
• Focuses on innovation and technological advancements to maintain a competitive edge.

What Industry Does BWA Operate In?

BorgWarner operates in the auto parts industry, which is undergoing a significant transformation driven by the shift towards electric vehicles. The industry is characterized by intense competition and technological advancements. Companies like BorgWarner must adapt to changing consumer preferences and regulatory requirements to remain competitive. The global automotive industry is expected to continue growing, with electric vehicles representing an increasing share of the market. BorgWarner's focus on EV solutions positions it to capitalize on this trend.

Who Are BWA's Key Customers?

• Original equipment manufacturers (OEMs) of light vehicles.
• Commercial vehicle manufacturers.
• Off-highway vehicle manufacturers.
• Tier one vehicle systems suppliers.
• Independent aftermarket customers.

Company Profile

BorgWarner Inc. operates in the Auto - Parts industry within the Consumer Cyclical sector. It is headquartered in Auburn Hills, US. The company is led by CEO Joseph F. Fadool. BWA has traded publicly since 1993.

Return on equity for BorgWarner Inc. stands at 6.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.7%, showing how much profit it generates from its asset base. BWA trades at a trailing price-to-earnings ratio of 40.43, above the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 9.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.13 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.5%, the inverse of the P/E and a quick read on earnings relative to price.

BWA Valuation & Market Position

With a $13.5B market cap, BorgWarner Inc. sits in the large-cap segment of the market. Analyst price targets span from $71.00 to $95.00, with a consensus of $84.33. At the current price of $65.69, that implies approximately 28% upside potential. Relative to its peer group, BWA's quantitative score of 71/100 is roughly in line with the peer average of 66/100.

Quarterly Financial Performance: BorgWarner Inc.

Revenue for BorgWarner Inc. came in at $3.65B during Q2 FY2026, a 3.3% improvement versus the preceding quarter. The company recorded net income of $277.0M, with diluted EPS of $1.34. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Consumer Cyclical. Across the four most recent quarters, BWA averaged $0.50 in diluted EPS.

BorgWarner Inc.'s Piotroski F-Score is 9/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.22 places it in the safe zone, indicating low near-term bankruptcy risk.

BorgWarner Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 11.8% above estimates on average.

Over the past six months, BorgWarner Inc. insiders filed 37 SEC Form 4 transactions — 20 sales and 17 purchases. On net that is roughly 274K shares disposed (about $20.3M), a signal worth weighing alongside the fundamentals.

BWA Financials

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BWA Analyst Consensus

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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