BorgWarner Adjusts Evaluation Score Amid Mixed Technical Trends and Rising Interest Expenses

BorgWarner, Inc., a small-cap player in the automobiles industry, has recently undergone an adjustment in its evaluation score. This revision reflects a shift in the technical trends associated with the stock. The technical indicators present a mixed picture, with the MACD showing a mildly bearish stance on a weekly basis while maintaining a bullish outlook on a monthly scale. The Bollinger Bands indicate bullish conditions weekly and mildly bullish monthly, suggesting some variability in market sentiment.
In terms of financial metrics, BorgWarner reported flat performance for the quarter ending June 2025. Operating profit growth over the past five years has been modest, with an annual rate of 8.34%. The company has also experienced a significant increase in interest expenses, which rose by 48.84% to USD 64 million. Additionally, the return on capital employed (ROCE) stands at 3.66%, indicating challenges in capital efficiency.

Despite these factors, BorgWarner's stock has generated a return of 30.39% over the past year, with profits rising by 27.7%. The company's PEG ratio is notably low at 0.2, suggesting a potential valuation discrepancy compared to its peers.

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