BWANEUTRAL

BWA Gross Margin Analysis

19.8%

Higher than 26% of Consumer Cyclical sector peers

Updated 78h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after covering the direct costs of producing its goods, with the remainder available for overhead and profit.

Sector Performance

26th percentile

BWA

19.8%

Sector Median

34.5%

Sector Avg

27.6%

Prior Period

19.2%(Jul 2026)

↑ Improving

📊

Deep Analysis

Gross margin is the percentage of revenue a company keeps after covering the direct costs of producing its goods, with the remainder available for overhead and profit.

BorgWarner's 19.8% margin sits far below the sector median of 33.9%, placing it in the 27th percentile among consumer cyclical peers. The trend for this metric is marked as N/A because a full eight-quarter history is unavailable; the year-over-year change is also N/A, while the most recent quarter shows a +3.1% increase to 19.8% from 19.2%. This combination of a low level with a recent upward tick suggests the company is still less efficient than most peers, but the quarterly improvement may reduce some near-term margin pressure. For an investor, the weak absolute margin points to elevated competitive or cost-related risk, though the positive QoQ shift offers a small counterbalance. On balance, this metric supports the overall NEUTRAL verdict: the margin is a clear weakness, yet the recent progress prevents it from being a strong negative signal.

Frequently Asked Questions

What does the Gross Margin tell investors about BWA?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BWA's Gross Margin compare to its sector?

BWA's Gross Margin of 19.8% compares to a Consumer Cyclical sector median of 34.5%, placing it in the 26th percentile.

Who are BWA's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: CHWY (30.1%), W (30.0%), JACK (29.9%), ROST (29.6%), RH (41.4%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.