BorgWarner Inc.BWA
NYSE • Consumer Cyclical
$54.48
P/E
44.40
PEG
—
FCF Yield
—
Rev Growth YoY
+163.0% YoY
Gross Margin
1929.0%
Health Score
5/10
D/E Ratio
0.72
Confidence
LOW
Business Snapshot
BorgWarner Inc. is a global automotive components supplier specialising in propulsion systems, including drivetrain, engine, and electrification technologies for combustion, hybrid, and electric vehicles. The company operates across major automotive markets worldwide, supplying both traditional OEMs and EV manufacturers. Based on a Price/Sales ratio of 0.78x and current pricing dynamics, BWA sits in the mid-to-large cap tier, though the exact market capitalisation figure is not confirmed in this dataset.
Financial Health
Score: 5/10 BWA presents a mixed financial health picture. On the surface, gross margin of 1,929% and net margin of 193% appear extraordinary, but these figures are almost certainly the result of unusual accounting items or data normalisation anomalies rather than genuine operational performance — a significant transparency concern...
Risk Assessment
- EARNINGS DETERIORATION: Earnings growth of -1,305.0% YoY signals a severe collapse in profitability even as revenues expanded 163.0%, pointing to potential extraordinary charges or structural cost issues.
- VALUATION STRETCH: P/E of 44.4x is approximately 78% above the sector average of 25x, leaving limited margin of safety if earnings disappoint further.
- DATA QUALITY / ANOMALOUS MARGINS: Gross margin of 1,929% and net margin of 193% are implausible for an auto parts manufacturer and indicate possible data normalisation errors, making fundamental analysis unreliable.
- TECHNICAL DETERIORATION: A confirmed death cross (50-day MA crossing below 200-day MA) combined with a bearish MACD signal suggests sustained downward price momentum; the current price of $54.48 sits well below the 52-week high of $70.08.
- CASH FLOW VISIBILITY: Free cash flow is unavailable, making it impossible to assess the company's capacity to service debt, fund capex, or return capital to shareholders.
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**Score: 5/10** BWA presents a mixed financial health picture. On the surface, gross margin of 1,929% and net margin of 193% appear extraordinary, but these figures are almost certainly the result of unusual accounting items or data normalisation anomalies rather than genuine operational performance — a significant transparency concern. On the positive side, the current ratio of 2.07x suggests adequate short-term liquidity, and a debt/equity of 0.72x is manageable within the auto parts sector. However, the absence of free cash flow data prevents a complete assessment of the company's ability to self-fund operations and capital returns. ---
- **EARNINGS DETERIORATION:** Earnings growth of -1,305.0% YoY signals a severe collapse in profitability even as revenues expanded 163.0%, pointing to potential extraordinary charges or structural cost issues. - **VALUATION STRETCH:** P/E of 44.4x is approximately 78% above the sector average of 25x, leaving limited margin of safety if earnings disappoint further. - **DATA QUALITY / ANOMALOUS MARGINS:** Gross margin of 1,929% and net margin of 193% are implausible for an auto parts manufacturer and indicate possible data normalisation errors, making fundamental analysis unreliable. - **TECHNICAL DETERIORATION:** A confirmed death cross (50-day MA crossing below 200-day MA) combined with a bearish MACD signal suggests sustained downward price momentum; the current price of $54.48 sits well below the 52-week high of $70.08. - **CASH FLOW VISIBILITY:** Free cash flow is unavailable, making it impossible to assess the company's capacity to service debt, fund capex, or return capital to shareholders. ---
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