BorgWarner Inc. Common Stock (BWA)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with durability and price. BorgWarner is a cyclical auto-parts supplier of technology for combustion, hybrid, and electric vehicles; FairStock's Lynch category says CYCLICAL — Auto Parts: earnings follow the economic cycle. The numbers bear that out. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.6B, net income $277.0M, and diluted EPS $1.34, versus net income $224.0M and diluted EPS $1.03 in fiscal Q2 2025, the quarter ended 2025-06-30. That is a solid profit rebound. But fiscal 2025, the year ended 2025-12-31, showed revenue of $14.3B, net income of $277.0M, and diluted EPS of $1.28, down from net income of $338.0M and diluted EPS of $1.50 in fiscal 2024, the year ended 2024-12-31. Fiscal 2023, the year ended 2023-12-31, was much stronger at net income $625.0M and diluted EPS $2.67. So earnings are volatile. Returns are modest: FairStock's ROE is 8.06% and ROCE 6.33%, with debt-to-equity 0.70. The positives are cash and balance-sheet signals: trailing free cash flow of $1.2B, a 10.1% FCF yield, and a Piotroski F-Score of 8/9. At the 2026-10-13 close of $60.57, FairStock's P/E is 29.84 and P/B is 2.19. Its Graham Number is $35.21, a negative margin of safety of -72.02%. I see a fair-to-fully valued cyclical: the cash flow is attractive, but the price already assumes better earnings than recent filed results consistently show.

In plain English: BorgWarner makes parts and technology for gas, hybrid, and electric vehicles. The business has been up and down: sales are roughly flat, profits fell from earlier years but bounced in the latest quarter, and it still produces a lot of cash. At $60.57, the stock looks more expensive than its profits and accounting value suggest, so the picture is mixed rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer