QualityDipStocks / Consumer Discretionary · Auto parts
BorgWarner BWA
Outside our quality screen, so we don’t track its dips. It’s 33% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate.
- Fair value est.
- $95.67+85%
- Market Value
- forming
- Off 52-wk high
- −33%
- Risk vs market
- Above marketbeta 1.34
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $51.63
- 52-wk lowlowest close, 1 year$40.96−20.7%
- PriceFri Oct 30 close$51.63you are here
- 52-wk highhighest close, 1 year$77.03+49.2%
- Fair value est.base case$95.67+85.3%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 4.3% ±2 points. Bear = 10.5% and 2.3%; bull = 8.5% and 6.3% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
What the price implies To be worth today’s price, BWA’s free cash flow would need to shrink about 7% a year for five years; our estimate uses 4%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much BWA moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 3.3× the S&P 500’s.
- Beta vs S&P 500
- 1.34
- Volatility
- 42% vs 13% SPY
- Correlation SPY
- 0.41
- Correlation QQQ
- 0.41
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $95.67, 85% above the price.
ValuationFree-cash-flow yield of 10.9% (price / FCF 9.2×): $1.2B of free cash in the last 12 months.
Cash returnsShare count down 5.5% in a year: $723M of buybacks over 12 months.
ValuationEV/EBITDA of 8.7×: modest for what the business earns before interest, tax and depreciation.
ValuationPrice / book of 1.9×, below the 4.9× median for the 151 Consumer Discretionary companies we cover.
Top bearish points 5 of 5
ProfitabilityOperating margin narrowed to 3.7% in FY2025 from 8.2% in FY2023 (SEC filings).
GrowthDiluted EPS fell 15% to $1.28 in FY2025.
ProfitabilityReturn on equity fell 6 points in two fiscal years, to 5% in FY2025.
GrowthSales grew 0.4% over the last 12 months, below the 7.0% median for the 175 Consumer Discretionary companies we cover.
QualityDoesn’t pass our quality screen: sales down vs the year-ago quarter.
Who’s talking about it
Notable investors, executives, analysts and public figures on BorgWarner in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Auto parts
All fundamentals
P/E 22.1 · FCF yield 10.9% · ROE 8%
Valuation
- P/E
- 22.1×Consumer Discretionary median 20.9×
- Price / FCF
- 9.2×
- FCF yield
- 10.9%
- EV / EBITDA
- 8.7×
- Price / sales
- 0.74×
- Price / book
- 1.86×
- Market cap
- $10.6Bprice × diluted shares
- Enterprise value
- $12.0B
Growth
- Revenue, 12 months
- $14.2B
- Sales growth, 12 months
- +0.4%vs the 12 months before
- Sales growth, 3 yrs
- +4.3%/yrfrom FY2022
- Diluted EPS, 12 months
- $2.39
- EPS growth, last FY
- −14.7%
- Net income, 12 months
- $478M
- Net income growth
- +257%12 months vs before
Profitability
- Gross margin
- 19.6%
- Operating margin
- 5.4%
- Net margin
- 3.4%
- FCF margin
- 8.1%
- Return on equity
- 8%
- Return on invested capital
- 8%
Balance sheet
- Cash & short-term inv.
- $1.6B
- Total debt
- $3.0B
- Net cash
- −$1.4B
- Debt / equity
- 0.53×
- Interest coverage
- 8.7×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $1.2B
- FCF growth, 12 months
- −7%
- Dividend yield
- 1.32%$139M paid
- Payout ratio
- 29%
- Buybacks, 12 months
- $723M6.8% of market cap
- Share count, 1 year
- −5.5%diluted shares vs a year ago
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From BorgWarner’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $95.67 · FCF value $118.42
Assumes 4.3% growth for 5 years (revenue grew 4.3% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $5.63 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 29, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 24 · 5 days −6.1%
The business
FCF $1.0B · Sales −3%
- Free cash flow, 12 months$1.0B
- Free-cash-flow yield9.2%
- Free-cash-flow margin7%
- Gross margin19%
- Operating margin10%
- Return on invested capital15%
- Return on equity9%
- Sales growth (latest quarter vs year-ago quarter)−3%
- Net debt / EBITDA0.8×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
BWA is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.