BorgWarner Inc. (BWA) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: BorgWarner Inc.

Market cap $11B · 52 weeks $41 – $77 (27 % below the high) · P/E 27.6× · 2027 expected P/E 9.5× · Dividend 1.2 % · Next earnings October 29, 2026 · expected EPS $1.25 · Closing price, Oct 28 · accounts published Aug 5.

• Valuation: P/E 27.6× (no verdict).
• Business: 5-year ROIC 7.2 % (weak).
• Balance sheet: Net debt/EBITDA 1.4× (solid).
• Earnings: 8 of 8 (uneven).

What would it be worth at its usual multiples?

No valuation verdict: it is a cyclical and today's P/E (27.6) does not tell whether it is cheap.

In cyclicals the P/E misleads; on its average earnings over 10 years it trades at 20.6 times.

What matters in consumer cyclicals: 5 of 7 pass

• 5y avg ROIC 7.2 %, fails.
• 5y avg operating margin 7.8 %, borderline.
• Inventory turnover 9.6×, passes.
• Net debt / EBITDA 1.4×, passes.
• Current Ratio 2.13, passes.
• Altman Z-Score 2.9, passes.
• EV/Sales vs history 0.8×, passes.
• P/E read in reverse (cyclicals) 27.6×, info.

Against its peers (reference peers) — BorgWarner Inc.: P/E 27.6×; EV/EBITDA 9.2×; ROIC 4.6 %; $11.4B. Allison Transmission Holdings, Inc. (P/E 17.0×; EV/EBITDA 11.6×; ROIC 9.6 %; $8.9B), Magna International Inc. (P/E 23.7×; EV/EBITDA 6.0×; ROIC 8.9 %; $17.1B), Dana Incorporated (P/E —; EV/EBITDA 10.3×; ROIC 6.5 %; $2.7B).

Expensive or cheap against its last ten years?

P/E at each close: today 27.6× · median 14.2× · minimum 5.0× · maximum 41.5× · cheap below 11.1× · expensive above 19.1×. It has been cheaper than today 89% of the time over its last ten years.

Dividend

tight (only raised recently) · Yield 1.2 % ($0.56 per share in 2025) · Years raising it 1 · 5-year growth -4 % a year · Free cash flow coverage 6.9× · With $1,000 invested today you'd collect $12.20 a year ($1.02 a month).