BWANEUTRAL

BWA Return on Equity (ROE) Analysis

8.1%

Higher than 52% of Consumer Cyclical sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity, and BorgWarner's current 8.1% means it earns $8.10 for every $100 of equity.

Sector Performance

52th percentile

BWA

8.1%

Sector Median

6.4%

Sector Avg

-38.1%

Prior Period

7.3%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity, and BorgWarner's current 8.1% means it earns $8.10 for every $100 of equity.

That is just below the sector median of 8.3%, placing the company at the 49th percentile among Consumer Cyclical peers, so its profitability is essentially in line with the typical peer. The metric shows no year-over-year change data (N/A), but quarter-over-quarter it improved by 11.0%, moving from 7.3% to 8.1%. Because the level sits near the sector median and the latest quarter shows a positive step, the risk is moderate: no clear edge over peers, but a recent upward nudge suggests improving efficiency. This combination neither highlights a special opportunity nor a pressing risk, which directly supports the overall NEUTRAL verdict. The metric is consistent with holding the stock without additional conviction either way.

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 8.1% compares to a Consumer Cyclical sector median of 6.4%, placing it in the 52th percentile.

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

The closest Consumer Cyclical peers by Return on Equity (ROE) include: TSLA (4.7%), AMCR (4.4%), JACK (8.6%), KMX (3.6%), PVH (3.3%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.