BWANEUTRAL

Gross Margin

19.2%

Higher than 26% of Consumer Cyclical sector peers

Updated 23h ago

Sector Performance

26th percentile

BWA

19.2%

Sector Median

36.1%

Sector Avg

30.8%

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Deep Analysis

BorgWarner's gross margin of 19.2% means that for every dollar of revenue, the company keeps about $0.19 after paying the direct costs to produce its products, with the rest going to those costs.

This figure sits well below the Consumer Cyclical sector median of 36.2%, placing the company at the 25th percentile among its peers. The metric has been perfectly stable over the most recent eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a low margin relative to peers and an unchanging trend suggests limited risk of further compression but also no catalyst for margin expansion, representing a neutral risk-opportunity profile. This stable but below-median gross margin directly supports the overall NEUTRAL verdict, as the metric neither strengthens the case for buying nor raises red flags for selling.

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 19.2% compares to a Consumer Cyclical sector median of 36.1%, placing it in the 26th percentile.

Who are BWA's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BROS (22.8%), XPEV (21.3%), TSLA (21.1%), BBY (20.9%), APTV (18.1%).

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.