BWA
BorgWarner Inc.
BWA's fundamentals are strong, but it looks expensive: trading at 21x earnings, above its usual 13x. Analysts expect earnings growth.
BWA Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| Stable | |
| Healthy |
BWA's profitability and balance sheet are currently healthy, and its revenue and cash flow are stable.
BWA PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 9.1x | $50.99 | — |
| Cheap | 11x | $25.48 | -50% |
| Fair | 13x | $31.93 | -37% |
| Current | 21x | $50.99 | — |
| Expensive | 30x | $71.22 | +40% |
Historical ranges are pointers, not guarantees.
BWA's PE is in its expensive range at 21x. If earnings grow as analysts expect, today's price would be 9.1x next year's earnings, in its cheap range.
BWA Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Growth | |
| Stable | |
| Improving | |
| Limited | |
| Moderate |
Analysts expect BWA's earnings to grow and its profitability to improve, with its revenue holding steady.
BWA Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $5.60 | +135% |
| Q3 2026 | $2.38 | +240% |
| Q2 2026 | $2.03 | +101% |
| Q1 2026 | $1.72 | +30% |
| Q4 2025 | $1.28 | -15% |
| Q3 2025 | $0.70 | -82% |
| Q2 2025 | $1.01 | -68% |
| Q1 2025 | $1.32 | -50% |
| Q4 2024 | $1.50 | -44% |
BWA's earnings per share have fallen from their peak: $2.38 over the past year, against $4.08 in early 2023.
BWA Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $3.5B | -2.9% |
| Q2 2026 | $3.6B | +0.3% |
| Q1 2026 | $3.5B | +0.5% |
| Q4 2025 | $3.6B | +3.9% |
| Q3 2025 | $3.6B | +4.1% |
| Q2 2025 | $3.6B | +1% |
| Q1 2025 | $3.5B | -2.2% |
| Q4 2024 | $3.4B | -2.4% |
BWA's revenue fell from its 2023 peak and has held roughly level since: $3.5B last quarter, down 2.9% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 8.7% | +1.8 points |
| Q2 2026 | 10% | +2.2 points |
| Q1 2026 | 9.5% | +2.8 points |
| Q4 2025 | -6.7% | +2.5 points |
| Q3 2025 | 6.9% | -0.9 points |
| Q2 2025 | 7.9% | -0.3 points |
| Q1 2025 | 6.7% | -1.5 points |
| Q4 2024 | -9.2% | -17 points |
BWA's operating margin was 8.7% last quarter, up 1.8 points from the same quarter a year ago.
BWA Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $195M | -24% |
| Q2 2026 | $490M | -2.4% |
| Q1 2026 | $9M | +$46M |
| Q4 2025 | $457M | -12% |
| Q3 2025 | $257M | +28% |
| Q2 2025 | $502M | +69% |
| Q1 2025 | -$37M | +$271M |
| Q4 2024 | $521M | -23% |
BWA generated $1.2B in free cash flow over the past year, down 7.4% from the year before.
BWA Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.8% | -1.7M shares |
| 1 year | -5.5% | -11.9M shares |
| 3 years | -13% | -30.7M shares |
| 5 years | -15% | -35.2M shares |
| Available history | -1.1% | -2.2M shares |
BWA has 205M diluted shares, down 5.5% from a year ago, with $723M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $175M |
| Q2 2026 | $100M |
| Q1 2026 | $150M |
| Q4 2025 | $298M |
| Q3 2025 | $102M |
| Q2 2025 | $108M |
| Q1 2025 | — |
| Q4 2024 | $1M |
BWA spent $723M buying back its own shares over the past year, about three times what it spent the year before.
BWA Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.0x | Healthy |
| Q4 2025 | 1.3x | Healthy |
| Q4 2024 | 1.7x | Healthy |
| Q3 2024 | 1.4x | Healthy |
| Q2 2024 | 1.4x | Healthy |
| Q1 2024 | 1.5x | Healthy |
| Q4 2023 | 1.2x | Healthy |
| Q3 2023 | 1.4x | Healthy |
BWA's net debt is about a year of its operating earnings (EBITDA), down from 1.4 years a year ago.
BWA Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 36.2 | Neutral |
| Stochastic | 8.4 | Oversold |
BWA's weekly RSI is 36 (neutral) and its Stochastic is 8 (oversold).
BWA PE vs Consumer Cyclical Sector
| Metric | BWA | Sector median | Relative |
|---|---|---|---|
| PE | 21x | 18x | 19% above |
| PE % | 71 | 47 | 24 pts above |
BWA is trading at 21x earnings, a 19% premium to the Consumer Cyclical sector's median of 18x.
BWA Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $56.0 | 8.9% below |
| 20 week MA | $61.7 | 17% below |
| 50 week MA | $58.3 | 13% below |
| 100 week MA | $46.8 | 8.9% above |
| 200 week MA | $41.9 | 22% above |
BWA has pulled back, but its long-term trend is still up: it's below its 8-, 20- and 50-week averages, but 22% above its 200-week average.
BWA Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $38.5 | $34.3 | -11% |
| 2021 | $34.3 | $38.4 | +12% |
| 2022 | $38.4 | $35.2 | -8.3% |
| 2023 | $35.2 | $35.9 | +1.9% |
| 2024 | $35.9 | $32.2 | -10% |
| 2025 | $32.2 | $45.6 | +42% |
| 2026 YTD | $45.6 | $51.0 | +12% |
BWA has finished lower in three of the last six years. It's up 12% so far in 2026.