BorgWarner Inc. (BWA) Stock

BorgWarner Inc. trades at a P/E ratio of 23.67, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 8.40 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.21 indicates reasonable value when growth is considered.

With a beta of 1.08, BorgWarner Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 1.29 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

BorgWarner Inc. achieves a profit margin of 2.06%, meaning it retains $2.06 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 9.25% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 6.22% and ROA at 5.87%, the company achieves moderate returns on invested capital.

BorgWarner Inc.'s revenue declined by 2.20% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 19.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against MOTOR VEHICLE PARTS & ACCESSORIES industry averages for proper context.

BorgWarner Inc. offers a dividend yield of 1.31%, paying $0.44 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/2/2025.

The dividend sustainability can be assessed through the payout ratio - BorgWarner Inc. pays $0.44 per share in dividends against earnings of $1.42 per share, resulting in a payout ratio of 30.99%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 6/16/2025.

BorgWarner Inc. has a market capitalization of $7.38B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 219.72M shares outstanding, the company's ownership is relatively concentrated. As a participant in the MOTOR VEHICLE PARTS & ACCESSORIES industry, it competes with other firms in this sector.

BorgWarner Inc.'s book value per share is $26.03, while the current stock price is $36.02, resulting in a price-to-book (P/B) ratio of 1.38. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

18 analysts cover BWA with 61% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $38.15 implies 5.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:7 Strong Buy, 4 Buy, 7 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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