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 28.50%, 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 28.50% in the last 1 year, much higher than market (S&P 500) returns of 14.11%
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.
90.56%
1.02
30.89%
S&P 500
13.68%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.09%
EBIT Growth (5y)
7.49%
EBIT to Interest (avg)
12.14
Debt to EBITDA (avg)
1.32
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
1.50
Tax Ratio
22.87%
Dividend Payout Ratio
43.75%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
14.58%
ROE (avg)
15.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
2.40
EV to EBIT
10.67
EV to EBITDA
7.00
EV to Capital Employed
2.08
EV to Sales
1.02
PEG Ratio
NA
Dividend Yield
111.76%
ROCE (Latest)
19.48%
ROE (Latest)
19.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,648 MM
INTEREST COVERAGE RATIO(Q)
Highest at 2,007.14
RAW MATERIAL COST(Y)
Fallen by -4.25% (YoY
CASH AND EQV(HY)
Highest at USD 4,485 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 32.05 %
INVENTORY TURNOVER RATIO(HY)
Highest at 9.47 times
DEBTORS TURNOVER RATIO(HY)
Highest at 4.91 times
OPERATING PROFIT(Q)
Highest at USD 562 MM
OPERATING PROFIT MARGIN(Q)
Highest at 15.73 %
PRE-TAX PROFIT(Q)
Highest at USD 382 MM
NET PROFIT(Q)
Highest at USD 360 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for BorgWarner, Inc.
Operating Cash Flow
Highest at USD 1,648 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 2,007.14
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at USD 562 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 15.73 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 382 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 360 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 360 MM has Grown at 59.65%
over average net sales of the previous four periods of USD 225.5 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Cash and Eqv
Highest at USD 4,485 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 32.05 %
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 9.47 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 4.91 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -4.25% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise 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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