ScoreWhy is BorgWarner, Inc. ?
1
High Management Efficiency with a high ROCE of 14.58%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.32 times
3
Poor long term growth as Operating profit has grown by an annual rate 8.34% of over the last 5 years
4
Flat results in Jun 25
- INTEREST(HY) At USD 64 MM has Grown at 48.84%
- ROCE(HY) Lowest at 3.66%
- RAW MATERIAL COST(Y) Grown by 7.27% (YoY)
5
With ROCE of 16.36%, it has a very expensive valuation with a 1.36 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 24.68%, its profits have risen by 27.7% ; the PEG ratio of the company is 0.2
6
Market Beating Performance
- The stock has generated a return of 24.68% in the last 1 year, much higher than market (S&P 500) returns of 13.22%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to BorgWarner, Inc. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is BorgWarner, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
BorgWarner, Inc.
24.68%
0.87
30.40%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.89%
EBIT Growth (5y)
8.34%
EBIT to Interest (avg)
12.14
Debt to EBITDA (avg)
1.32
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
1.49
Tax Ratio
22.87%
Dividend Payout Ratio
29.26%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
14.58%
ROE (avg)
15.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.49
EV to EBIT
8.29
EV to EBITDA
5.44
EV to Capital Employed
1.36
EV to Sales
0.77
PEG Ratio
0.22
Dividend Yield
121.12%
ROCE (Latest)
16.36%
ROE (Latest)
19.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,687 MM
CASH AND EQV(HY)
Highest at USD 3,748 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 34.37 %
INVENTORY TURNOVER RATIO(HY)
Highest at 9.02 times
NET SALES(Q)
Highest at USD 3,638 MM
-7What is not working for the Company
INTEREST(HY)
At USD 64 MM has Grown at 48.84%
ROCE(HY)
Lowest at 3.66%
RAW MATERIAL COST(Y)
Grown by 7.27% (YoY
Here's what is working for BorgWarner, Inc.
Operating Cash Flow
Highest at USD 1,687 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 3,638 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 3,748 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 34.37 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 9.02 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for BorgWarner, Inc.
Interest
At USD 64 MM has Grown at 48.84%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Raw Material Cost
Grown by 7.27% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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