BWANEUTRAL

Return on Equity (ROE)

7.3%

Higher than 46% of Consumer Cyclical sector peers

Updated 128h ago

Sector Performance

46th percentile

BWA

7.3%

Sector Median

8.5%

Sector Avg

-18.9%

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates per dollar of shareholder equity – at 7.3%, BorgWarner earns about 7.3 cents for every dollar of equity.

This sits below the sector median of 8.6% and places the company in the 45th percentile among its Consumer Cyclical peers, meaning roughly 55% of competitors have a higher ROE. Trend data is not available: the year-over-year change is marked N/A, and the quarter-over-quarter change is also N/A, providing no insight into recent direction. Without a trend, the current below-median ROE alone suggests limited competitive profitability, which could signal higher risk for investors seeking efficient capital use. This metric does not support the overall NEUTRAL verdict – the low relative ROE points to a potential weakness that a neutral stance does not address, though the lack of trend data prevents a stronger conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BWA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BWA's Return on Equity (ROE) compare to its sector?

BWA's Return on Equity (ROE) of 7.3% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 46th percentile.

Who are BWA's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: APTV (1.8%), DKNG (0.6%), LI (-2.5%), HMC (-3.8%), CROX (-6.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.