Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Borgwarner Inc

BWA · NYSE · Consumer

Fundamental quality

DEMANDING

50

out of 100

Borgwarner Inc earns a fundamental-quality score of 50 out of 100, profiling it as a company with demanding fundamentals. Its score rests mainly on its financial strength (net debt 1.11× EBITDA). Its weakest area is its growth (revenue +6.5%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

BorgWarner is the specialist in what makes the car move: turbos, transmissions and, increasingly, the electric motors and inverters of the battery vehicle. The supplier trying to cross the bridge between the combustion engine paying the bills and the EV promising the future.

What will shape its future

  • Electrification's real pace: its EV portfolio needs electric cars to truly take off.
  • The combustion business, the cash cow funding the crossing.
  • Global vehicle production and automaker price pressure.

Breakdown by area

I.Growth
35

EPS growth: -2.6% · Revenue growth: 6.5%

II.Profitability
39

Net margin: 2.9% · ROE: 7.4% · ROIC: 6.7%

III.Financial health
77

Net debt/EBITDA: 1.11x · FCF: 7.9%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 36%
ROEbeats 28%
Growthbeats 38%
Cash generationbeats 54%
Less debtbeats 59%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Borgwarner Inc strengths

  • It has cut its net debt over the period.

Borgwarner Inc risks and weaknesses

  • Declining earnings per share (-2.6% annualized).
  • Thin margins (net margin of 2.9%), little cushion for setbacks.
  • Shrinking margins: net margin has fallen from 5% to 2% in recent years.

Borgwarner Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202010,1655007432,092
202111,8035377922,424
202212,6359449472,804
202314,1986252,176
202414,0863382,006
202514,3162771,583

Between 2020 and 2025, revenue went from $10,165M to $14,316M (+41%) and net income went from $500M to $277M (-45%). Meanwhile, its margins have narrowed (from 5% to 2%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+0.4%
  • Net income+36.2%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score4850

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.56

per share, yearly

43% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

Advertising

Invest smart: choose your broker well

Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.

Interactive BrokersGlobal markets

The serious investor's standard

Open free account →
WebullCommission-free

Popular in the U.S.

Open free account →

Investing carries risk of loss.

Is Borgwarner Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Borgwarner Inc a good company to invest in?

In terms of business quality, Borgwarner Inc scores 50 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Borgwarner Inc a profitable company?

Borgwarner Inc is profitable, with a net margin of 2.9%, though a thin one.

Does Borgwarner Inc have a lot of debt?

Not particularly. Its net debt is 1.11 times its EBITDA, a low level.

Is Borgwarner Inc growing?

Its revenue has grown 6.5% annualized in recent years.

Does Borgwarner Inc generate cash?

Yes. It converts about 7.9% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

Was this page helpful?