BorgWarner (BWA) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

BorgWarner

NYSE•Consumer Cyclical•Auto Parts

$55.59+0.47(0.01%)Market open

Market Cap

$10.73B

P/E

22.5x

P/S

0.8x

P/B

1.8x

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.

How this company scores

GoodMetricSide Score: 66/100

Strongest: Balance Sheet & Red Flags (20/25); weakest: Cash & Earnings Quality (13/25).

Profitability14/25

Growth19/25

Balance Sheet & Red Flags20/25

Cash & Earnings Quality13/25

Strengths

Rising earningsLow leverageProfit converts from growthImproving leverage

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 22.5x5y range 8.1x – 69.9x

Currently above its 20-quarter median.

P/S · 0.8x5y range 0.4x – 0.9x

Currently above its 20-quarter median.

P/B · 1.8x5y range 1.0x – 2.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

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.

Price & Volume

Market Cap $10.73B

Metrics at a Glance

as of September 2026

Revenue & Profit

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

TTM Revenue: $14.24B
Q. Revenue: $3.49B
TTM EBITDA: $1.38B
TTM Op. Income: $770.00M
Q. Op. Income: $302.00M
TTM Net Income: $478.00M
Q. Net Income: $221.00M
EPS: $1.1
Shares Out.: $201.40M

$14.24B in TTM revenue grew 0.4% YoY, reaching $3.49B last quarter. TTM EBITDA of $1.38B and TTM operating income of $770.00M show growth is flowing through to the bottom line. TTM net income of $478.00M means revenue is converting into profit. Over the past year, TTM revenue is up 0% — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 19.0%
EBITDA Margin: 13.0%
Op. Margin: 8.7%
Net Margin: 6.3%

Op. margin of 8.7% is up 1.8% YoY — cost efficiency is improving. Net margin at 6.3% and gross margin of 19.0% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 25% — a weakening trend.

Price Ratios

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

P/E Ratio: 22.5x
P/S Ratio: 0.8x
P/B Ratio: 1.8x

At 22.5x P/E, the stock trades within typical market levels. P/S of 0.8x and P/B of 1.8x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 68% — an improving trend.

Assets & Liabilities

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

Total Assets: $13.22B
Cash: $1.58B
Long-Term Debt: $1.90B
Book Value: $5.87B
D/E Ratio: 0.3
Debt/EBITDA: 4.2

With $13.22B in assets and $1.90B in long-term debt, D/E is 0.3and book value is $5.87B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

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

Op. Cash Flow: $320.00M
TTM Free Cash Flow: $1.15B
FCF Margin: 8.1%
FCF / Net Income: 2.4

TTM FCF of $1.15B on $320.00M in operating cash flow. The FCF / Net Income ratio of 2.4x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.