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BorgWarner

DB:BGW
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BGW
DB
$5B
Market Cap
  1. Home
  2. DE
  3. Automobiles
Company description

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The last earnings update was 54 days ago. More info.


Add to Portfolio Compare Print
  • BorgWarner has significant price volatility in the past 3 months.
BGW Share Price and Events
7 Day Returns
4.4%
DB:BGW
3.7%
DE Auto Components
2.1%
DE Market
1 Year Returns
-37.1%
DB:BGW
-47.8%
DE Auto Components
-16.6%
DE Market
BGW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BorgWarner (BGW) 4.4% -9.2% -37.6% -37.1% -33.7% -58.8%
DE Auto Components 3.7% -20.4% -41.1% -47.8% -63.5% -67.9%
DE Market 2.1% -12.6% -22.9% -16.6% -21.9% -27.8%
1 Year Return vs Industry and Market
  • BGW outperformed the Auto Components industry which returned -47.8% over the past year.
  • BGW underperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
BGW
Industry
5yr Volatility vs Market
Related Companies

Value

 Is BorgWarner undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BorgWarner to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BorgWarner.

DB:BGW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:BGW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.14 (1 + (1- 21%) (40.01%))
1.335
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.335 * 5.44%)
6.87%

Discounted Cash Flow Calculation for DB:BGW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for BorgWarner is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:BGW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.87%)
2020 634.20 Analyst x9 593.42
2021 718.34 Analyst x7 628.94
2022 798.27 Analyst x3 653.98
2023 858.50 Analyst x2 658.10
2024 897.72 Est @ 4.57% 643.92
2025 925.38 Est @ 3.08% 621.08
2026 944.25 Est @ 2.04% 593.00
2027 956.63 Est @ 1.31% 562.14
2028 964.29 Est @ 0.8% 530.21
2029 968.56 Est @ 0.44% 498.32
Present value of next 10 years cash flows $5,983.00
DB:BGW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $968.56 × (1 + -0.39%) ÷ (6.87% – -0.39%)
$13,286.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13,286.20 ÷ (1 + 6.87%)10
$6,835.64
DB:BGW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,983.00 + $6,835.64
$12,818.64
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,818.64 / 206.70
$62.01
DB:BGW Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:BGW represents 0.95585x of NYSE:BWA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.95585x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 62.01 x 0.95585
€59.28
Value per share (EUR) From above. €59.28
Current discount Discount to share price of €23.60
= -1 x (€23.60 - €59.28) / €59.28
60.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price BorgWarner is available for.
Intrinsic value
>50%
Share price is €23.6 vs Future cash flow value of €59.28
Current Discount Checks
For BorgWarner to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • BorgWarner's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • BorgWarner's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BorgWarner's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BorgWarner's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:BGW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.63
NYSE:BWA Share Price ** NYSE (2020-04-07) in USD $24.69
Germany Auto Components Industry PE Ratio Median Figure of 9 Publicly-Listed Auto Components Companies 12.05x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 16.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BorgWarner.

DB:BGW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BWA Share Price ÷ EPS (both in USD)

= 24.69 ÷ 3.63

6.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BorgWarner is good value based on earnings compared to the DE Auto Components industry average.
  • BorgWarner is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does BorgWarner's expected growth come at a high price?
Raw Data
DB:BGW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
9.5%per year
Germany Auto Components Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Components Companies 0.53x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:BGW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.81x ÷ 9.5%

0.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BorgWarner is good value based on expected growth next year.
Price based on value of assets
What value do investors place on BorgWarner's assets?
Raw Data
DB:BGW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $22.80
NYSE:BWA Share Price * NYSE (2020-04-07) in USD $24.69
Germany Auto Components Industry PB Ratio Median Figure of 13 Publicly-Listed Auto Components Companies 0.7x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.45x
DB:BGW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BWA Share Price ÷ Book Value per Share (both in USD)

= 24.69 ÷ 22.80

1.08x

* Primary Listing of BorgWarner.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BorgWarner is overvalued based on assets compared to the DE Auto Components industry average.
X
Value checks
We assess BorgWarner's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. BorgWarner has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is BorgWarner expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BorgWarner expected to grow at an attractive rate?
  • BorgWarner's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • BorgWarner's earnings growth is positive but not above the Germany market average.
  • BorgWarner's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:BGW Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:BGW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 9.5%
DB:BGW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 4.7%
Germany Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 49.7%
Germany Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:BGW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:BGW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 12,228 1,540 1,078 3
2022-12-31 11,091 1,425 902 9
2021-12-31 10,552 1,332 813 14
2020-12-31 9,157 1,175 616 16
2020-04-07
DB:BGW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 10,168 1,008 746
2019-09-30 10,183 1,395 756
2019-06-30 10,169 1,289 766
2019-03-31 10,312 1,132 866
2018-12-31 10,530 1,126 931
2018-09-30 10,542 1,112 555
2018-06-30 10,481 1,086 536
2018-03-31 10,176 1,155 476
2017-12-31 9,799 1,180 440
2017-09-30 9,472 1,067 293
2017-06-30 9,270 1,073 191
2017-03-31 9,209 1,062 144

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BorgWarner's earnings are expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
  • BorgWarner's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:BGW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from BorgWarner Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BGW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.93 6.16 5.69 2.00
2022-12-31 4.60 5.47 3.50 5.00
2021-12-31 4.03 4.67 3.30 9.00
2020-12-31 2.88 3.98 1.48 9.00
2020-04-07
DB:BGW Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.63
2019-09-30 3.66
2019-06-30 3.70
2019-03-31 4.17
2018-12-31 4.47
2018-09-30 2.66
2018-06-30 2.56
2018-03-31 2.27
2017-12-31 2.09
2017-09-30 1.39
2017-06-30 0.90
2017-03-31 0.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BorgWarner is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BorgWarner's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BorgWarner has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has BorgWarner performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BorgWarner's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BorgWarner's year on year earnings growth rate has been positive over the past 5 years.
  • BorgWarner's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • BorgWarner's 1-year earnings growth is negative, it can't be compared to the DE Auto Components industry average.
Earnings and Revenue History
BorgWarner's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BorgWarner Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BGW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 10,168.00 746.00 484.00 413.00
2019-09-30 10,182.60 755.70 918.30
2019-06-30 10,168.60 765.70 916.30
2019-03-31 10,311.60 865.70 912.30
2018-12-31 10,530.00 931.00 497.00 440.00
2018-09-30 10,542.40 554.80 950.80
2018-06-30 10,480.60 535.70 947.50
2018-03-31 10,176.30 475.70 926.20
2017-12-31 9,799.00 440.00 485.00 408.00
2017-09-30 9,471.90 292.80 872.30
2017-06-30 9,269.90 191.20 1,028.60 -170.30
2017-03-31 9,209.40 143.60 846.90
2016-12-31 9,071.00 595.00 813.10
2016-09-30 8,935.10 537.10 778.80
2016-06-30 8,604.90 611.20 546.80 170.30
2016-03-31 8,307.60 594.90 682.20
2015-12-31 8,023.20 609.70 662.00
2015-09-30 7,892.00 624.30 653.00
2015-06-30 8,040.10 633.50 679.50
2015-03-31 8,205.20 675.60 693.30
2014-12-31 8,305.10 655.80 698.90
2014-09-30 8,198.60 657.30 696.60
2014-06-30 7,972.70 657.50 679.80
2014-03-31 7,669.60 641.40 654.20
2013-12-31 7,436.60 624.30 639.70
2013-09-30 7,270.30 604.10 628.80
2013-06-30 7,159.30 538.40 622.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • BorgWarner has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • BorgWarner used its assets more efficiently than the DE Auto Components industry average last year based on Return on Assets.
  • BorgWarner's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess BorgWarner's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BorgWarner has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is BorgWarner's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BorgWarner's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BorgWarner is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BorgWarner's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of BorgWarner's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BorgWarner Company Filings, last reported 3 months ago.

DB:BGW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4,844.00 1,960.00 832.00
2019-09-30 4,578.00 2,075.00 916.00
2019-06-30 4,502.00 2,100.00 710.00
2019-03-31 4,385.00 2,087.00 494.00
2018-12-31 4,345.00 2,114.00 739.00
2018-09-30 4,170.20 2,136.30 361.80
2018-06-30 4,054.00 2,173.00 361.90
2018-03-31 4,015.80 2,325.50 409.70
2017-12-31 3,825.90 2,188.30 545.30
2017-09-30 3,916.30 2,395.10 414.30
2017-06-30 3,691.90 2,219.70 387.10
2017-03-31 3,479.70 2,295.40 358.40
2016-12-31 3,301.90 2,219.50 443.70
2016-09-30 3,790.70 2,615.30 518.70
2016-06-30 3,756.10 2,634.80 495.00
2016-03-31 3,761.10 2,598.40 392.30
2015-12-31 3,631.50 2,553.00 577.70
2015-09-30 3,787.90 1,809.10 1,033.30
2015-06-30 3,751.50 1,803.80 1,107.90
2015-03-31 3,562.50 1,838.40 1,035.50
2014-12-31 3,690.90 1,340.00 797.80
2014-09-30 3,800.20 1,311.50 782.80
2014-06-30 3,893.70 1,245.30 771.40
2014-03-31 3,737.30 1,366.10 808.10
2013-12-31 3,632.40 1,222.60 939.50
2013-09-30 3,434.70 1,272.30 920.40
2013-06-30 3,256.00 1,230.10 817.00
  • BorgWarner's level of debt (40.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.5% vs 40.5% today).
  • Debt is well covered by operating cash flow (51.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 28x coverage).
X
Financial health checks
We assess BorgWarner's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BorgWarner has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is BorgWarner's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.75%
Current annual income from BorgWarner dividends. Estimated to be 2.88% next year.
If you bought €2,000 of BorgWarner shares you are expected to receive €55 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • BorgWarner's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.67%).
  • BorgWarner's dividend is below the markets top 25% of dividend payers in Germany (4.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:BGW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Germany Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 5.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:BGW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.77 2.00
2022-12-31 0.72 6.00
2021-12-31 0.71 10.00
2020-12-31 0.70 11.00
2020-04-07
DB:BGW Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-13 0.680 2.569
2019-11-14 0.680 1.672
2019-07-25 0.680 1.850
2019-04-25 0.680 1.722
2019-02-14 0.680 1.681
2018-11-08 0.680 1.793
2018-07-26 0.680 1.604
2018-04-26 0.680 1.424
2018-02-08 0.680 1.326
2017-11-09 0.680 1.263
2017-07-27 0.560 1.150
2017-04-27 0.560 1.308
2016-11-09 0.560 1.407
2016-07-26 0.520 1.506
2016-04-27 0.520 1.588
2016-02-11 0.520 1.466
2015-11-11 0.520 1.418
2015-07-29 0.520 1.185
2015-04-29 0.520 0.896
2015-02-11 0.520 0.857
2014-11-12 0.520 0.943
2014-07-21 0.520 0.887
2014-04-21 0.500 0.789
2014-01-22 0.500 0.847
2013-10-18 0.500 0.933
2013-07-25 0.500 1.012
2011-04-28 0.000 0.000
2011-02-10 0.000 0.000
2010-10-27 0.000 0.000
2010-07-30 0.000 0.000
2010-04-29 0.000 0.000
2010-02-11 0.000 0.000
2009-11-03 0.000 0.000
2009-10-28 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, BorgWarner has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but BorgWarner only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of BorgWarner's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.1x coverage).
X
Income/ dividend checks
We assess BorgWarner's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BorgWarner afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BorgWarner has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of BorgWarner's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Frédéric Lissalde
COMPENSATION $13,947,029
AGE 51
TENURE AS CEO 1.7 years
CEO Bio

Mr. Frédéric B. Lissalde has been President, Chief Executive Officer and Director of BorgWarner Inc. since August 01, 2018. He was Executive Vice President and Chief Operating Officer of BorgWarner Inc. since January 2018 until August 01, 2018. He has been employed at BorgWarner Inc. since 1999. Mr. Lissalde served as President of Borgwarner Turbo Systems Inc and General Manager of Borgwarner Turbo Systems Inc from May 2013 to January 2018 and was its Vice President of BorgWarner Inc. from May 2011 to January 2018. He served as President of Borgwarner Turbo Systems Passenger Car and General Manager of Borgwarner Turbo Systems Passenger Car since May 2011 until May 2013. He has held positions of increasingly significant responsibility during his 19 years with BorgWarner Inc. (the “Company”). He most recently served as President and General Manager of Turbo Systems, the Company’s largest business. Prior to that he served as Vice President and General Manager of BorgWarner Transmissions Systems and Vice President of global sales and marketing of BorgWarner Drivetrain Systems (“BorgWarner Drivetrain”). He also served as managing Director of several operations in Europe for BorgWarner Drivetrain. Mr. Lissalde holds a Masters of Engineering degree in 1990 of the ENSAM - Ecole Nationale Superieure des Arts et Metiers - Paris and also an MBA (ISA 1994) from HEC Paris.

CEO Compensation
  • Frédéric's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Frédéric's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the BorgWarner management team in years:

1.7
Average Tenure
51
Average Age
  • The average tenure for the BorgWarner management team is less than 2 years, this suggests a new team.
Management Team

Frédéric Lissalde

TITLE
President
COMPENSATION
$14M
AGE
51
TENURE
1.7 yrs

Kevin Nowlan

TITLE
Executive VP & CFO
COMPENSATION
$6M
AGE
47
TENURE
1 yrs

Tom McGill

TITLE
VP, Controller & Principal Accounting Officer
COMPENSATION
$2M
AGE
52
TENURE
1 yrs

Tonit Calaway

TITLE
Executive VP
COMPENSATION
$3M
AGE
51
TENURE
1.7 yrs

Hakan Yilmaz

TITLE
VP & Chief Technology Officer
AGE
40
TENURE
2.3 yrs

Jamal Farhat

TITLE
Chief Information Officer & VP
AGE
60
TENURE
15.7 yrs

Patrick Nolan

TITLE
Vice President of Investor Relations
TENURE
3.4 yrs

Scott Gallett

TITLE
Vice President of Marketing
AGE
53
TENURE
11.7 yrs

Felecia Pryor

TITLE
Executive VP & Chief Human Resources Officer
AGE
44
TENURE
1 yrs

Craig Aaron

TITLE
VP & Treasurer
AGE
41
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the BorgWarner board of directors in years:

6.2
Average Tenure
63
Average Age
  • The tenure for the BorgWarner board of directors is about average.
Board of Directors

Alexis Michas

TITLE
Independent Non-Executive Chairman
COMPENSATION
$411K
AGE
61
TENURE
7 yrs

Frédéric Lissalde

TITLE
President
COMPENSATION
$14M
AGE
51
TENURE
1.7 yrs

Jan Carlson

TITLE
Independent Director
COMPENSATION
$261K
AGE
59
TENURE
9.8 yrs

Vicki Sato

TITLE
Independent Director
COMPENSATION
$264K
AGE
70
TENURE
6.2 yrs

Michael Hanley

TITLE
Independent Director
COMPENSATION
$268K
AGE
63
TENURE
3.4 yrs

Dennis Cuneo

TITLE
Independent Director
COMPENSATION
$256K
AGE
70
TENURE
11.2 yrs

Jock McKernan

TITLE
Independent Director
COMPENSATION
$246K
AGE
71
TENURE
10.8 yrs

Debby McWhinney

TITLE
Independent Director
COMPENSATION
$249K
AGE
63
TENURE
1.8 yrs

Paul Mascarenas

TITLE
Independent Director
COMPENSATION
$247K
AGE
58
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess BorgWarner's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BorgWarner has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company’s Engine segment offers turbocharger and turbocharger actuators; eBoosters; and timing systems products, including timing chains, variable cam timing, crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains, and hybrid power transmission chains. It also provides emissions systems, such as electric air pumps and exhaust gas recirculation (EGR) modules, EGR coolers and valves, glow plugs, and instant starting systems; thermal systems products comprising viscous fan drives, polymer fans, coolant pumps, cabin heaters, battery heaters, and battery charging; and gasoline ignition technologies. The company’s Drivetrain segment offers friction and mechanical products that include dual and friction clutch modules, friction and separator plates, transmission bands, torque converter and one-way clutches, and torsional vibration dampers. It also provides electro-hydraulic solenoids, transmission solenoid modules, and dual clutch control modules; rear-wheel drive/all-wheel drive (AWD) transfer case systems, front wheel drive-AWD coupling systems, and cross-axle coupling systems; starters, alternators, and hybrid electric motors; and motor controllers, battery chargers, and uninterrupted power source systems. 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 founded in 1987 and is headquartered in Auburn Hills, Michigan.

Details
Name: BorgWarner Inc.
BGW
Exchange: DB
Founded: 1987
$4,693,647,503
206,704,088
Website: http://www.borgwarner.com
Address: BorgWarner Inc.
3850 Hamlin Road,
Auburn Hills,
Michigan, 48326,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BWA Common Stock New York Stock Exchange US USD 13. Aug 1993
DB BGW Common Stock Deutsche Boerse AG DE EUR 13. Aug 1993
LSE 0HOU Common Stock London Stock Exchange GB USD 13. Aug 1993
BRSE BGW Common Stock Berne Stock Exchange CH CHF 13. Aug 1993
BOVESPA B1WA34 BDR EACH 1 REPR 1 SHS UNSPON Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
29,000
BorgWarner employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 20:50
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.