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BorgWarner

BWA
45
Auto - Parts · Consumer Cyclical
Also trades as: 0HOU.L
Price
$69.64
+1.23 (+1.79%)
Market Cap
$14.29B
Winston Score
45
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 10, 2026 · filings through Jun 30, 2026

Share count falling — buybacks

9.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 239.5M (2021) → 216.4M (2025)

BorgWarner makes parts that go inside cars and trucks. It specializes in components that control how engines run and how power moves through a vehicle — things like turbochargers, transmission parts, and electric motor systems. Its customers are major automakers around the world, including Ford, Stellantis, Volkswagen, and BMW.

The company earns revenue by selling these parts directly to automakers during vehicle production, as well as through the aftermarket for repairs. BorgWarner operates globally, with significant manufacturing in North America, Europe, and Asia, and generates roughly $14 billion in annual revenue. It has been actively shifting its product lineup toward electric vehicle components, which is both its main growth opportunity and its biggest risk — if EV adoption slows or automakers consolidate their supplier relationships, BorgWarner could face pressure on both its legacy business and its newer electric investments.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+0.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+26.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

1.0%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$2.4B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

BorgWarner is growing revenue at 0% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
19.8%
Thin — 19.8% gross margin
Operating Margin
9.8%
Modest — 9.8% operating margin
ROCE
3.8%
Weak — 3.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+2.2%
Nearly flat sales (+2.2% YoY)
EPS YoY
+108.3%
Earnings growing fast (+108.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
416%
Turns 416% of profit into real cash
FCF Margin
8.1%
Modest free cash flow (8.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.69
Moderate — manageable debt (0.69)
Interest Cover
17.81x
Comfortably covers interest (17.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
34.8x
Pricey — P/E 34.8

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+25.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (34.8 → 9.5)

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Dividends

Dividend Yield
1.06%
Small dividend — 1.06% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+54.5%
Dividend growing fast (54.5% YoY)

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