Lumida
/BWA
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Borgwarner Inc

Borgwarner Inc

BWA
$62.44USD↓-0.53%-0.33 today

MARKET CAP

12.8B

P/E (TTM)

12.4x

FWD P/E

11.2x

DAY RANGE

$60 – $63

52W RANGE

$34
$79

AI Summary

Stalk
Sell NowHigh

BWA remains in a confirmed Stage 4 decline with lower highs and lower lows and down-sloping EMAs, establishing a bearish medium-term bias. Short-term momentum is bearish with price trading below the 9, 20, and 50 EMAs and no mean-reversion support despite oversold conditions. The long-term uptrend remains intact but offers no immediate support, justifying an immediate Sell Now directive on rallies into resistance.

  • ↑31% YoY increase in light vehicle e-product sales drove Q1 growth
  • ↑Data center turbine rollout expected to generate over $300M in year one
  • ↓Battery sales decline forecast to cut revenue by ~150bps this year
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

BorgWarner Inc. (NYSE: BWA) is a prominent player in the automotive components sector, specializing in advanced propulsion systems and technologies for combustion, hybrid, and electric vehicles. As the industry increasingly pivots towards electrification and clean energy solutions, BorgWarner is strategically expanding its product portfolio into non-automotive sectors, including data centers and power generation, capitalizing on its robust TurboCell technology.

Bull says

  • ↑31% YoY increase in light vehicle e-product sales drove Q1 growth
  • ↑Data center turbine rollout expected to generate over $300M in year one
  • ↑Returned $185M to shareholders through buybacks and dividends last quarter
  • ↑Adjusted operating margin rose to 10.5%, reflecting strong cost control
  • ↑High earnings yield, strong momentum and robust balance sheet support valuation
  • ↑Free cash flow up $48M YoY to $13M in Q1 2026

Bear says

  • ↓Battery sales decline forecast to cut revenue by ~150bps this year
  • ↓Negative growth and revisions trends signal pressure on top-line and EPS
  • ↓13F ownership remains low, indicating limited institutional support
  • ↓E-product margins under pressure from lower cell pricing
  • ↓Weak profitability metrics and dividend yield raise cash return concerns
  • ↓Flat Q1 revenue at $3.5B highlights stagnating sales trend

Investment themes with BWA

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-08-2026bullish

Transcript signals

Bull points

  • In the first quarter, stronger foreign currencies drove a year-over-year increase in sales of $167 million.
  • Our first quarter adjusted operating income was $372 million, equating to a strong 10.5% adjusted operating margin. That compares to adjusted operating income of $352 million, or a 10.0% adjusted operating margin from a year ago.
  • Our adjusted EPS was up 13 cents or 12% compared to a year ago, as a result of higher adjusted operating income and the impact of over $650 million in share repurchases over the past four quarters.

Bear points

  • We expect a sales decline in our battery business due to the lack of North American incentives and weaker European demand.
  • This decline represents 150 basis point headwinds to our year-over-year sales growth.
  • While the current environment remains challenging and uncertain, I'm confident in our team's ability to effectively navigate these conditions, which we clearly demonstrated in the first quarter.
Read full transcript analysis ›