Borgwarner
BWA on NYSE. BorgWarner makes and sells vehicle parts to car and truck makers. Market value $12.3bn.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
Recent profit includes a big one-time charge, so we price the company excluding that charge.
Should I look at this?
Worth a closer look
Why it could be worth it
What to watch out for
Nothing stood out in the numbers we check.
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $9.88 of spare cash in the past 12 months. A savings account pays about $4.
You pay 10.7 years of operating profit for the business. The average large US company costs around 18.
Each dollar kept in the business earns 8 cents a year. Above 10 is good.
Quality score: 80 of 100. Price score: 100 of 100. Our list needs 70 on quality and 60 on price.
$60.26 a share, 49% above its 1-year low
Over the past year the price has ranged from $40.50 to $78.82.
Dividend: 1.0% a year
Paid every year for at least 5 years
Prices from Monday’s close (5 October).
Five years of cash, in billions
| Revenue | |||||
| Revenue | $11.8bn | $12.6bn | $14.2bn | $14.1bn | $14.3bn |
| Operating margin | |||||
| Operating margin | 7.7% | 8.0% | 8.2% | 3.9% | 3.7% |
| Debt to equity | |||||
| Debt to equity | 0.62 | 0.58 | 0.64 | 0.75 | 0.72 |
| Shares outstanding | |||||
| Shares outstanding | 0.23bn | 0.24bn | 0.22bn | 0.21bn | 0.20bn |
Health checks
- Free cash flow positive5 of 5 years
- Accounting looks honest (Beneish)Nothing unusual
- Financial strength (Piotroski)8 of 9
- Profit backed by cash (accruals)Yes
- Debt0.72× equity
- Revenue growth, five yearsSlow, 7.1% a year
- Buying back its own sharesYes, 13% fewer since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $3.6 billion last quarter, about the same as a year ago.
- Profit: $277 million, up 24% on a year ago.
- It keeps 5 cents of each $1 of sales as operating profit, up from 3 cents a year earlier.
- Spare cash over the past 12 months: $1.2 billion, about the same as a year earlier.
- 5% fewer shares than a year ago. Each share owns a bit more of the company.
- Sales grew on a year ago in each of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $3.4bn |
| December 2024 | $3.4bn |
| March 2025 | $3.5bn |
| June 2025 | $3.6bn |
| September 2025 | $3.6bn |
| December 2025 | $3.6bn |
| March 2026 | $3.5bn |
| June 2026 | $3.6bn |
| Quarter to | Amount |
|---|---|
| September 2024 | $234m |
| December 2024 | -$405m |
| March 2025 | $157m |
| June 2025 | $224m |
| September 2025 | $158m |
| December 2025 | -$262m |
| March 2026 | $242m |
| June 2026 | $277m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 11 February 2026
- Next quarterly (estimated, 10-Q)
- 4 November 2026
Who owns it
12 long-term investors we follow own it, unchanged from 12 last quarter. 815 funds in all.
- LSV Asset ManagementJosef Lakonishok
- Value
- $437m
- Share of fund
- 0.8%
- GAMCO InvestorsMario Gabelli
- Value
- $21m
- Share of fund
- 0.2%
- Royce & AssociatesChuck Royce
- Value
- $504,773
- Share of fund
- <0.1%
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| LSV Asset ManagementJosef Lakonishok | $437m | 0.8% | |
| Hotchkis & WileyHotchkis & Wiley team | $117m | 0.3% | Cut |
| Gotham Asset ManagementJoel Greenblatt | $63m | 0.1% | Cut |
| GAMCO InvestorsMario Gabelli | $21m | 0.2% | |
| Mawer Investment ManagementMawer team | $20m | 0.1% | Cut |
| GMOJeremy Grantham | $18m | <0.1% | Cut |
| Boston PartnersBoston Partners team | $13m | <0.1% | Added |
| Harris Associates (Oakmark)Bill Nygren | $13m | <0.1% | Cut |
| Cullen Capital ManagementJames Cullen | $5m | <0.1% | Cut |
| Ariel InvestmentsJohn Rogers Jr. | $4m | <0.1% | Cut |
| Cambiar InvestorsBrian Barish | $3m | 0.1% | Cut |
| Royce & AssociatesChuck Royce | $504,773 | <0.1% |
Largest holders overall
- BlackRock$1.7bnCut
- Vanguard Portfolio Management$839mCut
- Dimensional Fund Advisors LP$783m
- Vanguard Capital Management$616m
- State Street$454mCut
- LSV Asset Management$437m
- AQR Capital Management$380mCut
- Victory Capital Management$324mAdded
- Geode Capital Management$316m
- William Blair Investment Management$251mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
4 investors own more than 5%.
- BlackRock, Inc.Passive investor8.6%−3.0 ptsSince 31 December 2025
- Vanguard Portfolio ManagementPassive investor6.6%Since 31 March 2026
- Vanguard Capital ManagementPassive investor5.3%Since 31 March 2026
- Dimensional Fund Advisors LPPassive investor5.2%Since 31 December 2024
- BlackRock Portfolio Management LLCPassive investorSold down below 5%Since 31 March 2026
- Victory Capital Management, Inc.Passive investorSold down below 5%Since 30 June 2025
- Harris Associates (Oakmark)Passive investorSold down below 5%Since 30 June 2025
- The Vanguard GroupPassive investorSold down below 5%Since 13 March 2026
| Holder | Stake | Since | |
|---|---|---|---|
BlackRock, Inc. Passive investor | 8.6%−3.0 pts | 31 December 2025 | |
Vanguard Portfolio Management Passive investor | 6.6% | 31 March 2026 | |
Vanguard Capital Management Passive investor | 5.3% | 31 March 2026 | |
Dimensional Fund Advisors LP Passive investor | 5.2% | 31 December 2024 | |
BlackRock Portfolio Management LLC Passive investor | Sold down below 5% | 31 March 2026 | |
Victory Capital Management, Inc. Passive investor | Sold down below 5% | 30 June 2025 | |
Harris Associates (Oakmark) Passive investor | Sold down below 5% | 30 June 2025 | |
The Vanguard Group Passive investor | Sold down below 5% | 13 March 2026 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
In the last 12 months, 1 insider bought $500,664 of shares on the open market. 11 sold $18m.
- Hanley Michael SDirectorSold
- Date
- 28 August 2026
- Shares
- 5,000
- Price
- $65.51
- Value
- $327,550
- CALAWAY TONIT MEVP, CAO, Gen Counsel & SecSold
- Date
- 24 August 2026
- Shares
- 22,000
- Price
- $66.26
- Value
- $1m
- Kalathur RajeshDirectorBought
- Date
- 19 August 2026
- Shares
- 7,407
- Price
- $67.59
- Value
- $500,664
- Kulikowski Amy B.VP & Chief Accounting OfficerSold
- Date
- 18 August 2026
- Shares
- 2,900
- Price
- $68.60
- Value
- $198,940
- Demmerle StefanVice PresidentSold
- Date
- 17 August 2026
- Shares
- 1,000
- Price
- $70.00
- Value
- $70,000
- CALAWAY TONIT MEVP, CAO, Gen Counsel & SecSold
- Date
- 17 August 2026
- Shares
- 44,000
- Price
- $69.65
- Value
- $3m
- McKenzie IsabelleVice PresidentSold
- Date
- 17 August 2026
- Shares
- 4,500
- Price
- $70.39
- Value
- $316,769
- McAlmont ShaunDirectorSold
- Date
- 17 August 2026
- Shares
- 7,000
- Price
- $69.36
- Value
- $485,548
- Shankar SailajaDirectorSold
- Date
- 5 June 2026
- Shares
- 5,000
- Price
- $73.08
- Value
- $365,400
- Weng VolkerVice PresidentSold
- Date
- 28 May 2026
- Shares
- 5,000
- Price
- $72.35
- Value
- $361,750
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 28 August 2026 | Hanley Michael S Director | Sold | 5,000 | $65.51 | $327,550 |
| 24 August 2026 | CALAWAY TONIT M EVP, CAO, Gen Counsel & Sec | Sold | 22,000 | $66.26 | $1m |
| 19 August 2026 | Kalathur Rajesh Director | Bought | 7,407 | $67.59 | $500,664 |
| 18 August 2026 | Kulikowski Amy B. VP & Chief Accounting Officer | Sold | 2,900 | $68.60 | $198,940 |
| 17 August 2026 | Demmerle Stefan Vice President | Sold | 1,000 | $70.00 | $70,000 |
| 17 August 2026 | CALAWAY TONIT M EVP, CAO, Gen Counsel & Sec | Sold | 44,000 | $69.65 | $3m |
| 17 August 2026 | McKenzie Isabelle Vice President | Sold | 4,500 | $70.39 | $316,769 |
| 17 August 2026 | McAlmont Shaun Director | Sold | 7,000 | $69.36 | $485,548 |
| 5 June 2026 | Shankar Sailaja Director | Sold | 5,000 | $73.08 | $365,400 |
| 28 May 2026 | Weng Volker Vice President | Sold | 5,000 | $72.35 | $361,750 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the warning signs we check for were found.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 11 Feb 2026, plus the 10-Q filed 5 Aug 2026 and 7 later 8-Ks.
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
Cheap for a reason is the question the numbers cannot answer.
Whether the price already reflects the risks is what the deep dive is for.
What changed in the risks this year
Companies must list what could hurt them each year. These are the parts that changed since last year’s report.
A failure of or disruption in our information technology infrastructure, including a disruption related to cybersecurity, could adversely impact our business and operations.
Could happenFurther, we continually update and expand our information technology systems to enable us to run our business more efficiently, including the potential incorporation of AI solutions into our information systems and processes. The increasing use and evolution of advanced technology solutions creates potential risks for loss or misuse of Company data that forms part of any data set that was collected, used, stored or transferred to run our business. Any unintentional dissemination or intentional destruction of confidential information stored in our or our third-party providers' systems, portable media or storage devices may result in significantly increased business and security recovery costs, a damaged reputation, administrative penalties, or costs related to defending legal claims. The use of AI in the development of our products and services could also cause loss or theft of intellectual property as well as subject us to risks related to intellectual property infringement or misappropriation, data privacy and cybersecurity. In addition, if the content, analyses, or recommendations that AI programs assist in producing are or are alleged to be deficient, inaccurate, or biased, then our business, financial condition, and results of operations and our reputation may be adversely affected. We also face risks of competitive disadvantage if our competitors more effectively use AI to drive internal efficiencies or create new or enhanced products or services that we are unable to compete against on cost, quality or other attributes. Any of these risks could negatively impact our business or results of operation.
Read moreChanges in administrative policy on the part of the U.S. or other countries, including the imposition of or increases in tariffs, changes to existing trade agreements and any resulting changes in international trade relations, may have an adverse effect on us.
Could happenIn addition to potential increases in customs duties and tariffs in the U.S. and other countries, the United States-Mexico-Canada Agreement ("USMCA") is subject to renewal in 2026. There can be no assurance that the USMCA will be renewed or, if renewed, any newly negotiated terms in the USMCA will not adversely affect our business. Also, China presents unique risks to U.S. automotive manufacturers due to the strain in U.S.-China relations and the level of integration with key components in our global supply chain. It remains unclear what additional actions the current U.S. administration may take with respect to trade issues involving China and other countries.
Read moreOur portfolio strategy may prove unsuccessful.
Could happenAs noted, we conduct certain of our operations through joint ventures, where we may share ownership and management responsibilities with one or more partners that may not share our goals and objectives. Operating a joint venture may require additional organizational formalities as well as the sharing of information and decision making with our partners. Additional risks associated with joint ventures include one or more partners failing to satisfy contractual obligations, the ability to enforce such obligations, conflicts arising between us and any of our partners, a change in the ownership of any of our partners and less of an ability to control compliance with applicable rules and regulations, including the Foreign Corrupt Practices Act and related rules and regulations.
Read morePotential liabilities pursuant to the spin-off of PHINIA could materially and adversely affect our business.
Already happenedIn connection with the spin-off, we entered into a separation and distribution agreement and related agreements with PHINIA to govern the spin-off and the relationship between the two companies following the completion of the spin-off. These agreements provide for specific indemnity and liability obligations of each party and have led, and could in the future lead, to disputes between us. For example, on September 19, 2024, we commenced a lawsuit against PHINIA, seeking to recover from PHINIA approximately $120 million of value added tax (“VAT”) refunds that PHINIA received or expects to receive from governmental agencies as well as damages and interest. These refunds consisted of VAT paid by the Company in periods prior to or directly related to the spin-off that established PHINIA as an independent company. PHINIA responded to the lawsuit and also asserted counterclaims against the Company. On October 15, 2025, the Company entered into a settlement agreement (the “Settlement Agreement”) with PHINIA, pursuant to which PHINIA agreed to pay the Company $78 million, resolving the lawsuit and certain other matters relating to the spin-off. In connection with the Settlement Agreement, the Company and PHINIA also entered into an amended and restated tax matters agreement that, among other things, limits the Company’s responsibility to certain defined tax obligations. As a result, the Company recorded a net charge of $40 million as of December 31, 2025, for the reduction of VAT-related receivables, the elimination of certain Company liabilities under the amended and restated tax matters agreement and related legal fees, which is included in Other operating expense, net in the Company’s Consolidated Statements of Operations in Item 8 of this report. If we are required to indemnify PHINIA and other parties under the circumstances set forth in the agreements with PHINIA, we may be subject to future liabilities. In addition, with respect to the liabilities for which PHINIA and the other parties have agreed to indemnify us under these agreements, the indemnity rights we have against PHINIA and such other parties may not be sufficient to protect us against the full amount of the liabilities, further PHINIA or such other parties may not be able to fully satisfy their indemnification obligations. It is also possible that a court could disregard the allocation of assets and liabilities agreed to among the Company, PHINIA and such other parties and require the Company to assume responsibility for obligations allocated to PHINIA or such other parties or to cause the Company to not realize an asset on its Consolidated Balance Sheet. Any of these outcomes could result in additional costs, reduce the value of our assets or otherwise negatively affect our business and financial results.
Read moreChanges in administrative policy on the part of the U.S. or other countries, including the imposition of or increases in tariffs, changes to existing trade agreements and any resulting changes in international trade relations, may have an adverse effect on us.
Already happenedIn 2025, the U.S. announced significant tariffs on imports from a broad range of countries, including the European Union, Canada, Mexico and China. These tariffs have increased the cost of raw materials and components we purchase, and to the extent the tariffs announced to date or announced in the future become or remain effective and are maintained, these tariffs would likely further increase the cost of raw materials and components we purchase. The imposition of tariffs by the U.S. has resulted in retaliatory tariffs from other countries, including China, which has increased and would continue to increase the cost of products we sell. Additionally, ongoing changes in U.S. and foreign government trade policies, including potential modifications to existing trade agreements and further restrictions on free trade, could introduce additional uncertainty with respect to trade policies and government regulations affecting international trade. Tariffs or retaliatory tariffs announced to date or announced in the future, current trade tensions, any escalation of trade tensions, additional tariffs, retaliatory measures by foreign governments, shifts in U.S. or international trade policies or related uncertainties affecting the conduct of business and consumer spending could continue to adversely impact our supply chain, increase costs of components and materials and reduce demand for our products, directly or indirectly due to negative effects on our customers, the U.S. economy, the economies of other countries in which we operate or the global economy, any or all of which could have a material adverse effect on our business, financial condition, results of operations and cash flows. Further, the duration and scope of these potential effects are unknown. Although we have taken steps to attempt to mitigate these effects, including entering into contractual agreements with our customers to recover tariff impacts incurred to date, and are considering others to counter the impact of such tariffs on our business, financial condition and results of operations, there is no assurance that we will continue to be successful in recovering such costs from our customers or implementing the other mitigation efforts without disrupting our business, operations and financial performance.
Read more
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.