BWANEUTRAL

BWA FCF Yield Analysis

8.8%

Higher than 79% of Consumer Cyclical sector peers

Updated 155h ago·SEC filings & market data

Key Takeaway

A free cash flow yield of 8.8% means BorgWarner generates $0.088 in cash from operations minus capital spending for every $1 of its market value, a higher return than most stocks offer.

Sector Performance

79th percentile

BWA

8.8%

Sector Median

5.5%

Sector Avg

-3.3%

Prior Period

9.1%(Jul 2026)

↓ Declining

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Deep Analysis

A free cash flow yield of 8.8% means BorgWarner generates $0.088 in cash from operations minus capital spending for every $1 of its market value, a higher return than most stocks offer.

That yield sits well above the sector median of 5.5%, placing BorgWarner in the 79th percentile among Consumer Cyclical peers. The metric is decreasing, with a quarter-over-quarter drop of 3.3%; the year-over-year change is not available, but recent history shows 9.2% then 9.1% before the current 8.8%. A high but falling yield suggests the company still throws off solid cash relative to its price, yet the downward trend may reflect rising valuation, weakening cash flow, or both. For investors, this combination offers a potential income-like advantage but carries the risk that the yield could keep declining toward the sector norm. This metric supports the overall NEUTRAL verdict: the strong level argues for a positive tilt, while the negative trend pulls back, leaving no clear bullish or bearish edge.

Frequently Asked Questions

What does the FCF Yield tell investors about BWA?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does BWA's FCF Yield compare to its sector?

BWA's FCF Yield of 8.8% compares to a Consumer Cyclical sector median of 5.5%, placing it in the 79th percentile.

Who are BWA's closest peers by FCF Yield?

The closest Consumer Cyclical peers by FCF Yield include: ABNB (5.6%), AMCR (5.5%), BALL (4.8%), BBY (7.0%), PHM (7.3%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.