BWA

Consumer Cyclical

BorgWarner Inc. · Auto - Parts · $14B

UQS Score — Balanced Preset
47.0
Below Average

BorgWarner Inc. scores 47.0/100 using the Balanced preset.

UQS vs Consumer Cyclical Sector
BWA
47.0
Sector avg
37.7
Quality
Neutral
Moat
Weak
Growth
Weak
Risk
Good
Valuation
Attractive

What is BorgWarner Inc.?

BorgWarner Inc. is a global automotive supplier delivering powertrain and electrification solutions across combustion, hybrid, and electric vehicle platforms. Headquartered in Auburn Hills, Michigan, the company serves automakers and aftermarket customers worldwide.

BorgWarner generates revenue by supplying critical components to original equipment manufacturers of light, commercial, and off-highway vehicles. Its four operating segments — Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket — cover everything from turbochargers and battery systems to fuel injection and vehicle diagnostics. The company also sells directly to independent aftermarket customers, creating a secondary revenue channel beyond OEM relationships.

BorgWarner was founded in 1993 and is headquartered in Auburn Hills, US.

  • Turbochargers, eBoosters, and eTurbos for air management
  • Battery modules, packs, and charging systems for EVs
  • Gasoline and diesel fuel injection components and systems
  • Power electronics, control modules, and drivetrain friction products
  • Aftermarket diagnostics, maintenance tools, and engine management solutions

Is BWA a Good Stock to Buy?

UQS Score rates BWA as Below Average overall, reflecting meaningful headwinds across several key quality dimensions.

Among the brighter spots in BorgWarner's profile, the Risk pillar earns a Good label, suggesting the company maintains a relatively manageable financial risk posture compared to sector peers. The Valuation pillar is rated Attractive, indicating the stock may not be pricing in an optimistic scenario — a potential point of interest for value-oriented investors.

The Moat and Growth pillars both register as Weak, pointing to limited competitive differentiation and constrained near-term expansion prospects in a rapidly shifting automotive landscape.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does BWA pay dividends?

Yes — BorgWarner Inc. pays a dividend.

BorgWarner pays a regular dividend, which is relatively uncommon among automotive suppliers navigating heavy electrification investment cycles. The dividend reflects management's intent to return capital to shareholders even as the company funds its EV transition. Income-focused investors may find the payout cadence appealing, though the Growth and Moat pillar ratings warrant consideration alongside any yield assessment.

When does BWA report earnings?

BorgWarner reports earnings on a quarterly cadence, consistent with standard practice for US-listed large-cap equities.

The company's recent results reflect the dual pressures of legacy combustion exposure and accelerating investment in electrification. Revenue mix is shifting as EV-related segments grow, while traditional fuel injection and air management volumes face longer-term structural headwinds.

For the most recent quarter's results and guidance, visit BorgWarner's official investor relations page.

BWA Price History

+30.0% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in BorgWarner Inc.?

$
Today it would be worth
$13,954
That's a +39.5% total return, or +6.9% annualized.

Based on BorgWarner Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

BWA Long-term Outlook

BorgWarner's fundamental outlook is shaped by a Weak Growth pillar alongside a Good Risk profile — a combination that suggests the company is navigating transition carefully but has not yet demonstrated a clear acceleration path. The Attractive Valuation label implies the market has already discounted significant uncertainty. The pace of EV adoption and the company's ability to grow its electrification revenue relative to declining combustion volumes will be central to any re-rating.

Growth drivers

  • Expanding EV and hybrid component portfolio across battery and e-propulsion segments
  • Aftermarket segment providing more stable, recurring revenue independent of new vehicle cycles
  • Broadening customer base across commercial and off-highway vehicle markets

Key risks

  • Weak Moat rating signals limited pricing power as OEMs consolidate supplier relationships
  • Structural decline in combustion vehicle demand pressuring legacy segment volumes
  • Elevated capital requirements for EV transition could weigh on free cash flow generation

BWA vs Peers

BorgWarner competes in the automotive components space alongside several large-cap and mid-cap suppliers, each with distinct strategic positioning.

ALSNBWA scores lower
Allison Transmission Holdings, Inc.

Allison focuses narrowly on fully automatic transmissions for commercial and defense vehicles, giving it a more concentrated but defensible product niche than BorgWarner's diversified portfolio.

APTVBWA scores higher
Aptiv PLC

Aptiv has pivoted aggressively toward vehicle intelligence and electrical architecture, competing with BorgWarner primarily in the electrification and software-defined vehicle space.

MODBWA scores higher
Modine Manufacturing Company

Modine specializes in thermal management solutions and has been expanding into data center cooling, giving it a different end-market diversification profile compared to BorgWarner's vehicle-centric focus.

Frequently Asked Questions

What does BorgWarner do?

BorgWarner supplies powertrain and electrification components to automakers and aftermarket customers globally. Its products span turbochargers, battery systems, fuel injection, drivetrain components, and vehicle diagnostics — serving light vehicles, commercial trucks, and off-highway equipment.

Does BWA pay dividends?

Yes, BorgWarner pays a regular dividend. The company has maintained shareholder distributions even while investing heavily in its electrification transition, making it one of the fewer automotive suppliers with an active dividend program.

When does BWA report earnings?

BorgWarner reports on a quarterly cadence, standard for US-listed large-cap companies. For confirmed dates and the most recent results, check BorgWarner's investor relations page directly.

Is BWA a good stock to buy?

UQS Score rates BWA as Below Average overall. The Valuation pillar is Attractive and Risk is Good, but Moat and Growth are both Weak. Whether that profile fits your investment criteria depends on your own risk tolerance and time horizon — the full pillar breakdown is available to Pro members.

Is BWA overvalued?

Based on the UQS Valuation pillar, BWA is rated Attractive, suggesting the current price may already reflect considerable uncertainty about the company's transition. This does not constitute a price target or recommendation — see the full analysis for context.

How does BWA compare to its competitors?

Compared to peers like Aptiv, Allison Transmission, and Modine, BorgWarner stands out for its breadth across combustion, hybrid, and EV platforms. However, its Weak Moat rating suggests it has not yet established a durable competitive edge relative to more focused rivals.

What is BWA's market cap bracket?

BorgWarner is classified as a large-cap company, placing it among the more substantial publicly traded automotive suppliers by market value.

Who founded BorgWarner?

BorgWarner in its current form was established in 1993, though its roots trace back to earlier automotive component businesses. Detailed founding history is widely available through the company's official corporate profile.

Is BWA a long-term quality investment?

As a long-term quality indicator, BWA's UQS profile shows mixed signals. Good Risk and Attractive Valuation are constructive, but Weak Moat and Weak Growth suggest the company needs to demonstrate clearer competitive positioning in electrification before the long-term quality case strengthens.

What is the main competitive advantage of BorgWarner?

BorgWarner's breadth across combustion, hybrid, and electric vehicle technologies gives it exposure to multiple powertrain transitions simultaneously. However, the UQS Moat pillar rates this advantage as Weak, indicating the market does not yet view it as a strongly defensible position.

What sector does BWA belong to?

BorgWarner is classified under the Consumer Cyclical sector, reflecting its dependence on vehicle production volumes and consumer demand cycles — both of which can be sensitive to economic conditions and interest rate environments.

Is BWA a growth stock or value stock?

Based on the UQS pillar profile, BWA leans toward value territory — the Valuation pillar is Attractive while the Growth pillar is Weak. This combination typically characterizes a company where the market has priced in limited near-term expansion, rather than a high-growth premium.

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Pro Analysis

BWA — Score History

3540455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 23 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202647.142.226.027.469.394.2-0.1
May 22, 202647.242.226.027.469.395.4-0.1
May 21, 202647.342.226.027.469.395.6-0.1
May 20, 202647.442.226.027.469.396.60.0
May 19, 202647.442.226.027.469.396.2+0.1
May 16, 202647.342.226.027.469.395.5+0.4
May 15, 202646.942.226.027.469.393.4-0.1
May 14, 202647.042.226.027.469.393.6-0.2
May 13, 202647.242.226.027.469.395.10.0
May 12, 202647.242.226.027.369.395.5-0.2

BWA — Pillar Breakdown

Quality

42.2/100 (25%)

BorgWarner Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

27.4/100 (20%)

BorgWarner Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

69.3/100 (15%)

BorgWarner Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageModerate

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

93.9/100 (15%)

BorgWarner Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

26/100 (25%)

BorgWarner Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for BWA.

Score Composition

Quality
42.2×25%10.6
Growth
27.4×20%5.5
Risk
69.3×15%10.4
Valuation
93.9×15%14.1
Moat
26.0×25%6.5
Total
47.0Below Average

Financial Data

More Stock Analysis

How is the BWA UQS Score Calculated?

The UQS (Unified Quality Score) for BorgWarner Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses BorgWarner Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether BorgWarner Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.