Assessing BorgWarner: Insights From 6 Financial Analysts

Across the recent three months, 6 analysts have shared their insights on BorgWarner BWA, expressing a variety of opinions spanning from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $41.17, along with a high estimate of $45.00 and a low estimate of $36.00. This current average represents a 10.5% decrease from the previous average price target of $46.00.

Interpreting Analyst Ratings: A Closer Look

A clear picture of BorgWarner's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to BorgWarner. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of BorgWarner compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for BorgWarner's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into BorgWarner's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on BorgWarner analyst ratings.

Discovering BorgWarner: A Closer Look

BorgWarner is a Tier I auto-parts supplier with three operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, and cabin heaters. The drivetrain and battery systems group produces automatic transmission components, torque management products, battery heaters, battery charging, and battery modules. The e-propulsion segment makes e-motors, power electronics, and software and control modules. The company's largest customers are Ford and Volkswagen at 13% and 8% of 2022 revenue, respectively. Geographically, Europe accounted for 34% of 2022 revenue, while Asia and North America were 32% each.

Unraveling the Financial Story of BorgWarner

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining BorgWarner's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.28% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: BorgWarner's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.38%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 0.75%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): BorgWarner's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.32%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: BorgWarner's debt-to-equity ratio is below the industry average. With a ratio of 0.67, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.