📊 BWA Key Takeaways
Investment Thesis
BorgWarner exhibits deteriorating profitability with net income declining 17.3% YoY despite flat revenue, indicating margin compression and operational challenges in the automotive parts sector. The company's negative free cash flow of -201M combined with modest interest coverage of 5.4x raises concerns about capital allocation efficiency and financial sustainability, particularly given significant debt levels relative to equity.
BWA Strengths
- Solid liquidity position with current ratio of 2.07x and $2.3B in cash reserves
- Manageable leverage at 0.72x debt-to-equity with adequate interest coverage of 5.4x
- Substantial asset base of $13.8B providing operational foundation in established market
BWA Risks
- Negative free cash flow of -201M indicates capital expenditures ($469M) exceed operating cash generation ($268M), raising funding sustainability concerns
- Deteriorating profitability with net income down 17.3% YoY and net margin compressed to 1.9%, suggesting operational challenges or market headwinds
- Stagnant revenue growth at 0.0% YoY combined with declining earnings indicates the company faces competitive pressure or cyclical automotive industry weakness
- Low return metrics (ROE 5.1%, ROA 2.0%) suggest inefficient capital utilization relative to equity base
Key Metrics to Watch
- Operating cash flow trends and path to positive free cash flow
- Gross margin sustainability amid potential input cost or pricing pressures
- Capital expenditure efficiency and ROI on major projects
BWA Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.07x current ratio provides a solid financial cushion.
BWA Profitability Ratios
BWA vs Default Sector
How BORGWARNER INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BWA Balance Sheet & Liquidity
BWA 5-Year Financial Trend
5-Year Trend Summary: BORGWARNER INC's revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $2.67 reflects profitable operations.
BWA Growth Metrics (YoY)
BWA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.4B | $158.0M | $0.73 |
| Q2 2025 | $3.6B | $224.0M | $1.03 |
| Q1 2025 | $3.5B | $157.0M | $0.72 |
| Q3 2024 | $3.4B | $50.0M | $0.21 |
| Q2 2024 | $3.6B | $204.0M | $0.87 |
| Q1 2024 | $3.4B | $206.0M | $0.90 |
| Q3 2023 | $3.2B | $50.0M | $0.21 |
| Q2 2023 | $3.8B | $204.0M | $0.87 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BWA Capital Allocation
BWA SEC Filings
Access official SEC EDGAR filings for BORGWARNER INC (CIK: 0000908255)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BWA
What is the AI rating for BWA?
BORGWARNER INC (BWA) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BWA's key strengths?
Solid liquidity position with current ratio of 2.07x and $2.3B in cash reserves. Manageable leverage at 0.72x debt-to-equity with adequate interest coverage of 5.4x.
What are the risks of investing in BWA?
Negative free cash flow of -201M indicates capital expenditures ($469M) exceed operating cash generation ($268M), raising funding sustainability concerns. Deteriorating profitability with net income down 17.3% YoY and net margin compressed to 1.9%, suggesting operational challenges or market headwinds.
What is BWA's revenue and growth?
BORGWARNER INC reported revenue of $14.3B.
Does BWA pay dividends?
BORGWARNER INC pays dividends, with $119.0M distributed to shareholders in the trailing twelve months.
Where can I find BWA SEC filings?
Official SEC filings for BORGWARNER INC (CIK: 0000908255) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BWA's EPS?
BORGWARNER INC has a diluted EPS of $1.28.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.