Professional
Added to YB: 2024-06-20
Pitch date: 2024-06-10
BWA [bullish]
BorgWarner Inc.
+80.69%
current return
Author Info
No bio for this author
Company Info
BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide.
Market Cap
$12.9B
Pitch Price
$33.38
Price Target
42.00 (-30%)
Dividend
1.09%
EV/EBITDA
7.12
P/E
48.84
EV/Sales
1.04
Sector
Automobile Components
Category
growth
BorgWarner Inc.: Beat Well Received After Tricky 2023
BWA: Q1 beat - $1.03 EPS vs $0.87 est, 7% org rev growth. Raised '24 org growth to 2-5% from 1-5%, EPS to $3.80-4.15 from $3.65-4.00. $500M buyback announced. Narrow moat from tech innovation, switching costs, global footprint. $42 FVE on 9.6% avg stage 1 margin (11.9% 15yr median), 9.3% normalized. High uncertainty from auto cyclicality & operating leverage. Standard stewardship: sound balance sheet, ROIC > WACC, shareholder-aligned mgmt comp.
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