Borgwarner Inc Stock Intrinsic Value – BORGWARNER INC Reports Second Quarter Results for FY2023, Ended June 30 2023
August 26, 2023
🌥️Earnings Overview
On August 2, 2023, BORGWARNER INC ($NYSE:BWA) released their earnings report for the second quarter of FY2023, ending June 30, 2023. Total revenue soared by 20.2%, amounting to USD 4520.0 million, compared to the same quarter the year before. However, net income saw a decrease of 5.6%, settling at USD 204.0 million.
Market Price
On Wednesday, BORGWARNER INC released its second quarter financial results for FY2023, ended June 30 2023. The company’s stock opened at $46.6 and closed at $43.0, a 7.5% drop from the previous day’s closing price of $46.5. BORGWARNER INC expects to continue to experience some impact from the pandemic in the short term, but sees a potential for improvement in the long run. The company is focusing on cost-saving measures and capital expenditure reductions, as well as investing in new technologies to remain competitive in the automotive industry.
Overall, the company’s second quarter results fell short of expectations and investors reacted negatively, causing the stock price to drop significantly. BORGWARNER INC must now focus on restoring investor confidence and driving long-term growth in order to regain traction in the stock market. 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 – Borgwarner Inc Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of the wellbeing of BORGWARNER INC. Using our proprietary Valuation Line, we have determined that the intrinsic value of BORGWARNER INC’s share is around $45.4. Currently, the stock is traded at $43.0, presenting an opportunity to invest at a fair price that is undervalued by 5.3%. Our analysis shows that this stock presents a great opportunity for investors who are looking for a good return on their investments. More…
Peers
The company’s product portfolio includes transmission, torque management, all-wheel drive, and engine timing systems. BorgWarner has a strong global presence with over 50,000 employees in over 60 facilities across 19 countries. The company’s main competitors are Aptiv PLC, TI Fluid Systems PLC, Valeo SA.
– Aptiv PLC ($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 recently reported their second quarter financial results for FY2023, ended June 30 2023. Total revenue increased by 20.2% year-over-year to USD 4520.0 million while net income decreased by 5.6% to USD 204.0 million. This resulted in the stock price of BORGWARNER INC decreasing on the same day. For investors, it would be worth monitoring the company’s financials going forward to assess whether the decline in profit is a one-time event or part of a trend.
Additionally, investors should consider the company’s overall fundamentals such as its competitive advantage, management’s track record, and debt levels before investing.
Related Posts
Recent Posts
