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BWA

CONSUMER CYCLICAL

BorgWarner Inc

AI Stock Analysis· Neutral
Jun 22 · 8:24 PM ET

BorgWarner Inc (BWA) is currently trading at $72.34, reflecting a modest increase of 0.70% for the day. The stock's technical indicators suggest a mixed sentiment; the Relative Strength Index (RSI) at 56.0 indicates that the stock is neither overbought nor oversold. The short-term Simple Moving Average (SMA20) is slightly below the current price at $72.50, while the SMA50 and SMA200 stand at $63.92 and $51.85, respectively, indicating a bullish trend over the longer term. However, the MACD at 2.36, with a signal line of 3.13 and a negative histogram of -0.77, suggests potential weakening momentum in the near term.

From a fundamental perspective, BorgWarner demonstrates impressive growth metrics, with a year-over-year revenue growth of 165.4% and a quarter-over-quarter growth of 0.5%. The earnings per share (EPS) of $1.72 showcases a robust growth rate of 61.1% quarter-over-quarter. However, the high price-to-earnings (P/E) ratio of 41.8 indicates that the stock may be overvalued compared to its forward P/E of 17.8, suggesting that investors are pricing in significant future growth. Analysts maintain a "BUY" consensus, with a target price of $76.33, reflecting optimism about the company's future performance despite the elevated valuation metrics.

While BorgWarner's next earnings report is not scheduled within the next 30 days, the last quarter's performance showed strong margins, with a gross margin of 1867.8% and an operating margin of 924.1%. Notably, the recent news includes a reduction of stock position by Victory Capital Management Inc. and new stake acquisition by Norges Bank, which may influence investor sentiment. A specific point to watch moving forward is the company's ability to maintain its impressive margins and revenue growth trajectory, as any signs of margin compression or slowing growth could lead to increased volatility in the stock price.

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52-Week Range

$32.37$78.82

$70.52

Fundamentals

Market Cap$14.7B
P/E Ratio41.8
EPS$1.72
Dividend Yield0.88%
Dividend / Share$0.62
ROE7.3%
Profit Margin2.5%
Debt / Equity

Trading

Volume2.5M
Avg Volume (10D)
Shares Outstanding205.1M

BWA News

25 articles

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Price Data

Open$70.10
Previous Close$72.34
Day High$71.75
Day Low$68.91
52 Week High$78.82
52 Week Low$32.37

About BorgWarner Inc

BorgWarner Inc. is an American multinational automotive supplier headquartered in Auburn Hills, Michigan.

37.5K employees
Listed August 12, 1993

Company Details

Security TypeCommon Stock
ExchangeNYSE
CurrencyUSD
Round Lot
SICAUTO PARTS
CIK
Composite FIGI
Share Class FIGI