BWA Stock Analysis — BorgWarner Inc.
Sector: Industrials
AI Verdict
BWA is cheap for the growth you're getting if the OEM relationships and drivetrain tech moat deliver on the 335% earnings leap analysts expect.
Competitive Moat
BorgWarner designs and manufactures advanced propulsion systems for combustion, hybrid, and electric vehicles, with deep integration into global automaker supply chains. Its moat comes from long-term OEM relationships and proprietary drivetrain technologies that are difficult for new entrants to replicate at scale.
Summary
A huge jump in expected earnings makes BWA's valuation swing from expensive to cheap in one year.
Where It Stands
BWA trades at 11.6x next year's earnings, well below the industrials sector median of 20x, with analysts projecting a massive 335.2% EPS jump.
Key Metrics
- Trailing P/E: 50.4x
- Forward P/E: 11.6x
- PEG Ratio: 0.15
- Earnings Growth: +3.4%
- Revenue Growth: +0.0%
- Dividend Yield: 0.01%
- 52-Week High: $78.82
- 52-Week Low: $40.50
Analyst Consensus
15 Buy · 6 Hold · 0 Sell (21 analysts)
Bull Case
With a 335.2% forward EPS growth forecast and a forward P/E of just 11.6x, BWA is cheap for the growth on offer if it delivers.
Bear Case
If the 335.2% EPS surge fails to materialize, the current 50.4x trailing P/E leaves plenty of room for the stock to fall back toward sector norms.
Catalyst to Watch
Watch for quarterly earnings and full-year guidance updates to confirm whether triple-digit EPS growth is actually tracking.