-1.46%
1.82%
-3.75%
-8.33%
-4.51%
-16.07%
7.33%

Company Description

BorgWarner Inc.provides solutions for combustion, hybrid, and electric vehicles worldwide.The company operates through four segments: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket.


The Air Management segment offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, canisters, cabin heaters, battery modules and systems, battery packs, battery heaters, and battery charging.The E-Propulsion & Drivetrain segment provides rotating electrical components, power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products.The Fuel Injection segment develops and manufactures gasoline and diesel fuel injection components and systems.


The Aftermarket segment sells products and services to independent aftermarket customers and original equipment service customers.This segment provides a range of solutions, including fuel injection, electronics and engine management, maintenance, and test equipment and vehicle diagnostics.The company sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles.


The company was formerly known as Borg-Warner Automotive, Inc.BorgWarner Inc.was incorporated in 1987 and is headquartered in Auburn Hills, Michigan.

Market Data

Last Price 32.37
Change Percentage -1.46%
Open 32.59
Previous Close 32.85
Market Cap ( Millions) 7079
Volume 287336
Year High 38.23
Year Low 29.51
M A 50 33.0
M A 200 33.67

Financial Ratios

FCF Yield 12.02%
Dividend Yield 1.36%
ROE 15.00%
Debt / Equity 76.98%
Net Debt / EBIDTA 144.69%
Price To Book 1.17
Price Earnings Ratio 8.05
Price To FCF 8.32
Price To sales 0.5
EV / EBITDA 5.19

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Air Management

Expected Growth : 5.5 %

What the company do ?

Air Management from BorgWarner Inc. is a system that manages air flow, pressure, and temperature in vehicles to optimize engine performance, efficiency, and emissions.

Why we expect these perspectives ?

BorgWarner's Air Management segment growth is driven by increasing adoption of turbochargers, rising demand for fuel-efficient vehicles, and growing penetration of electrification in the automotive industry. Additionally, the company's focus on innovation, expanding product portfolio, and strategic acquisitions contribute to its 5.5% growth rate.

Segment nΒ°2 -> Drivetrain & Battery Systems

Expected Growth : 6.2 %

What the company do ?

BorgWarner's Drivetrain & Battery Systems provide efficient and sustainable solutions for electric vehicles, including e-motors, transmissions, and battery management systems.

Why we expect these perspectives ?

BorgWarner's Drivetrain & Battery Systems growth is driven by increasing adoption of electric vehicles, rising demand for fuel-efficient technologies, and growing need for advanced battery management systems. Additionally, the company's strategic acquisitions and partnerships, such as the purchase of Delphi Technologies, have expanded its product portfolio and enhanced its market position.

Segment nΒ°3 -> ePropulsion

Expected Growth : 6.8 %

What the company do ?

ePropulsion from BorgWarner Inc. is an electric propulsion system for marine vessels, providing efficient and sustainable propulsion solutions.

Why we expect these perspectives ?

ePropulsion's 6.8% growth is driven by increasing adoption of electric vehicles, stringent emissions regulations, and rising demand for sustainable mobility solutions. Additionally, BorgWarner's investments in R&D, strategic partnerships, and expanding production capacity are contributing to the segment's growth.

Borgwarner Inc. Products

Product Range What is it ?
Turbochargers BorgWarner's turbochargers are designed to increase power and efficiency in internal combustion engines, providing improved fuel economy and reduced emissions.
Emissions Systems BorgWarner's emissions systems include exhaust gas recirculation (EGR) coolers, diesel particulate filters (DPFs), and selective catalytic reduction (SCR) systems to reduce emissions in diesel and gasoline engines.
Drivetrain Components BorgWarner's drivetrain components include transmission components, all-wheel drive (AWD) systems, and torque transfer cases to improve vehicle performance and efficiency.
Engine Timing Systems BorgWarner's engine timing systems include timing chains, tensioners, and guides to improve engine performance and efficiency.
Electrification Products BorgWarner's electrification products include electric motors, power electronics, and charging systems for hybrid and electric vehicles.
Thermal Management Systems BorgWarner's thermal management systems include cooling systems, heat exchangers, and thermal management modules to improve engine performance and efficiency.

BorgWarner Inc.'s Porter Forces

BorgWarner Inc. faces moderate threat from substitutes due to the presence of alternative fuel-efficient technologies and electric vehicles, which could potentially replace traditional internal combustion engines.

BorgWarner Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are highly customized, making it difficult for customers to switch suppliers.

BorgWarner Inc. relies on a network of suppliers for raw materials and components. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.

The automotive industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants to BorgWarner Inc.'s business.

The automotive industry is highly competitive, with many established players competing for market share. BorgWarner Inc. faces intense rivalry from other suppliers of automotive components, which can lead to pricing pressure and reduced margins.

Capital Structure

Value
Debt Weight 40.27%
Debt Cost 3.95%
Equity Weight 59.73%
Equity Cost 10.36%
WACC 7.78%
Leverage 67.42%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
MOD Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications. It operates through Climate Solutions and …
VC Visteon Corporation, an automotive technology company, engineers, designs, and manufactures automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including analog gauge clusters to …
DORM Dorman Products, Inc. supplies replacement parts and fasteners for passenger cars, light trucks, and medium- and heavy-duty trucks in the automotive aftermarket industry worldwide. It offers original equipment dealer products, …
LEA Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and …
LKQ LKQ Corporation distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. It operates through three segments: North America, Europe, and Specialty. The company distributes bumper …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
32.37$
Current Price
32.37$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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