BWA Stock Analysis — BorgWarner Inc.
Sector: Industrials
AI Verdict
BWA is cheap for the growth you're getting, but the market is betting big on a turnaround that must actually show up in the next few quarters.
Competitive Moat
BorgWarner supplies critical drivetrain and powertrain components to global automakers, with deep integration into OEM supply chains creating high switching costs. Its focus on electrification and proprietary hybrid/electric technologies gives it a defensible position as the industry transitions away from internal combustion engines.
Summary
A massive 261.8% jump in expected earnings puts BWA on the radar for a sharp valuation reset.
Where It Stands
BWA trades at 12.8x next year's earnings—far below the industrials sector median of 20x—while analysts expect EPS to surge 261.8% over the next year.
Key Metrics
- Trailing P/E: 46.4x
- Forward P/E: 12.8x
- PEG Ratio: 0.18
- Earnings Growth: +2.6%
- Revenue Growth: +0.0%
- Dividend Yield: 0.01%
- 52-Week High: $78.82
- 52-Week Low: $34.27
Analyst Consensus
15 Buy · 6 Hold · 0 Sell (21 analysts)
Bull Case
With forward EPS growth of 261.8% and a forward P/E of just 12.8x, you're getting explosive earnings growth at a steep discount to the sector.
Bear Case
If BWA's forward P/E reverts even halfway to its trailing 46.4x, it would imply a major drop in sentiment and likely a sharp price correction.
Catalyst to Watch
Watch for quarterly earnings to confirm the triple-digit EPS growth forecast—any miss could quickly unwind the low forward multiple.