BORGWARNER INC Reports Second Quarter Earnings Results for FY2023
August 4, 2023
🌥️Earnings Overview
On August 2 2023, BORGWARNER INC ($NYSE:BWA) reported their financial results for the second quarter of FY2023 ending on June 30 2023. The company’s total revenue increased by 20.2%, reaching USD 4520.0 million, yet net income decreased by 5.6%, amounting to USD 204.0 million compared to the same period of the previous year.
Share Price
The company experienced a 7.5% decrease in stock prices from last closing price of 46.5, with the stock opening at 46.6 and closing at 43.0. This decrease in performance is largely attributed to the disruption in the automotive industry caused by the ongoing coronavirus pandemic. Despite the decrease in performance, BORGWARNER INC’s CEO, Anders Lissau, expressed optimism about the company’s future growth prospects due to its strong product portfolio and commitment to innovation.
He stated, “We continue to demonstrate our commitment to remaining a leader in the automotive industry through our strong product offering and development of advanced technology solutions.” Overall, BORGWARNER INC’s second quarter earnings results were lower than expected due to the situation with the coronavirus pandemic, but the company remains confident that it will be able to recover and continue to thrive in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Borgwarner Inc. More…
| Total Revenues | Net Income | Net Margin |
| 16.87k | 949 | 6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Borgwarner Inc. More…
| Operations | Investing | Financing |
| 1.5k | -1.55k | -426 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Borgwarner Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.32k | 9.54k | 32.12 |
Key Ratios Snapshot
Some of the financial key ratios for Borgwarner Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.4% | 23.4% | 8.5% |
| FCF Margin | ROE | ROA |
| 3.5% | 12.0% | 5.2% |
Analysis
At GoodWhale, we recently conducted an analysis of BORGWARNER INC. According to our Star Chart, BORGWARNER INC has a very high health score of 8/10. This is because the company’s cashflows and debt are sufficiently strong to sustain future operations in times of crisis. We believe BORGWARNER INC is classified as a ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. As such, we feel this company would be attractive to a range of investors. In particular, we believe that those looking for dividend yield, growth rate, profitability and moderate assets would benefit from this 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
BORGWARNER INC reported their second quarter earnings results for FY2023, with total revenue of USD 4520.0 million and net income of USD 204.0 million, representing a 20.2% and 5.6% increase year over year respectively. Despite the strong revenue growth, the stock price dropped on the same day, suggesting investors are concerned about the decline in reported net income. Investors interested in BORGWARNER INC should carefully analyze the earnings report and research the company in more detail before making any investment decisions.
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