Borgwarner Inc Intrinsic Value Calculator – BorgWarner Named Top Automotive Pick by Wells Fargo Senior Equity Analyst

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BORGWARNER ($NYSE:BWA): BorgWarner Inc. has been named the top automotive pick by Wells Fargo’s senior equity analyst. The company specializes in delivering efficient, reliable, and sustainable solutions that include powertrain systems and components, turbochargers, e-motors, and transmissions for nearly all of the world’s major automakers. They also have extensive experience in providing solutions for hybrid and electric vehicles. They view the company as well-positioned to benefit from the increase in demand for electric and hybrid vehicles. Wells Fargo believes that BorgWarner has the resources to capitalize on this emerging trend in the industry, giving it a competitive advantage over its rivals.

Furthermore, the analyst highlighted the company’s strong balance sheet and free cash flow as additional reasons for their positive recommendation. Given the potential of BorgWarner, Wells Fargo’s senior equity analyst is confident that the company is well positioned to continue to grow and prosper. With their strong industry position, financial resources, and commitment to innovation, BorgWarner is set to be a leader in the automotive industry for years to come.

Market Price

On Thursday, BORGWARNER INC stock opened at $34.0 and closed at $35.8, representing a 7.1% increase from its prior closing price of $33.5. This strong showing in the market was largely attributed to Denoyer’s recommendation that BORGWARNER INC continues to have potential to outperform the rest of the automotive industry. The analyst also cited BORGWARNER INC’s strong balance sheet and ability to capitalize on emerging trends in the automotive industry as reasons why investors should keep a close eye on the company’s performance. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Borgwarner Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Borgwarner Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Borgwarner Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Borgwarner Inc are shown below. More…

Analysis – Borgwarner Inc Intrinsic Value Calculator

At GoodWhale, we recently undertook a fundamental analysis of BORGWARNER INC to determine its fair value. After reviewing the company’s financials, we made an assessment using our proprietary Valuation Line, and determined that the fair value of BORGWARNER INC’s share is around $43.8. At the time of writing, BORGWARNER INC stock is traded at $35.8, which implies a fair price undervaluation of 18.2%. This indicates that there may be an opportunity for investors to take advantage of the discounted price to purchase BORGWARNER INC stock. More…

Peers

The company’s product portfolio includes transmission, torque management, all-wheel drive, and engine timing systems. BorgWarner has a strong global presence with over 50,000 employees in over 60 facilities across 19 countries. The company’s main competitors are Aptiv PLC, TI Fluid Systems PLC, Valeo SA.

– Aptiv PLC ($NYSE:APTV)

Aptiv PLC is a global technology company that develops safer, greener and more connected solutions that enable the future of mobility. It has a market cap of 23.58B as of 2022 and a Return on Equity of 4.8%. The company’s products are used in a variety of vehicles, including cars, trucks, buses, motorcycles, and off-road vehicles.

– TI Fluid Systems PLC ($LSE:TIFS)

The company’s market cap is 650.34M as of 2022 and its ROE is 6.17%. The company manufactures and supplies hydraulic and pneumatic fluid power products and systems for use in mobile and industrial applications. It operates in three segments: Mobile Equipment, Aerospace and Industrial. The Mobile Equipment segment offers hydraulic pumps, motors, and cylinders, as well as power take-offs and winches, for use in construction, agricultural, material handling, and other off-highway vehicles. The Aerospace segment provides hydraulic and pneumatic products and systems for use in commercial and military aircraft. The Industrial segment offers hydraulic and pneumatic products for use in a range of industrial applications, including energy, transportation, material handling, and others.

– Valeo SA ($LTS:0RH5)

Valeo SA is a French automotive supplier headquartered in Paris. The company produces a variety of automotive parts, including electrical systems, powertrains, and driver assistance systems. As of 2022, Valeo has a market cap of 4.03 billion euros and a return on equity of 7.35%. The company has been successful in recent years due to its focus on electric and autonomous vehicles, which are two of the fastest-growing segments in the automotive industry.

Summary

Investing in BorgWarner Inc. is an attractive option for investors, as it has been rated as a top automotive pick by Wells Fargo’s senior equity analyst. On the same day of the endorsement, the stock price of BorgWarner Inc. moved up, indicating investors’ confidence in the company. Analysts are positive about the company’s strong balance sheet and presence in the industry.

This is further bolstered by its ability to generate sustained higher cash flows, making it an attractive investment option with potential for long-term growth. Analysts recommend allocating a portion of the portfolio to BorgWarner Inc. as it provides a good source of diversification and higher returns.