BorgWarner Inc.


SKU: BWA Category:


This is our first report on BorgWarner, one of the leading automotive parts players. The company is working hard to manage the challenges of the operating environment while securing its future growth. BorgWarner delivered a decent set of financial results and has recently acquired eMotor of Santroll and AKASOL for accelerating its electrification processes. The company has made R&D expenditure in relation to EV products. Because of these efforts, a prominent global vehicle manufacturer recently selected the battery management system of BorgWarner to equip the sum of its C-Segment, B-segment, and platforms of light commercial vehicles. It will also provide a high-voltage hairpin eMotor to a famous electric vehicle brand. However, electric vehicles account for a less single-digit percentage of the revenue of the company, and the transformation is also in a very initial stage. Hence, there exists a great uncertainty regarding the potential transition of the company. A possible slowdown in demand for vehicles because of rising interest rates and higher inflation can discourage the production of vehicles. This will, in turn, result in less demand for components of vehicles. We provide the company’s stock a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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