CluenexBorgWarner BWA
BorgWarner scores average on business quality (4.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What BorgWarner does
BorgWarner manufactures engineered components and systems for vehicle powertrains, supplying global automakers with turbochargers, starters, and emissions systems. Traditional internal combustion engine parts generate the bulk of current cash flow, paid for by major auto manufacturers.
- What it does best
BorgWarner builds scale advantages in turbocharging and powertrain components, generating $1.2B in free cash flow on $14.3B in revenue. This manufacturing footprint creates deep customer integration that smaller suppliers like Lear cannot easily replicate.
- The main risk
Automotive pricing pressure and regional volume drops threaten margins, underscored by sector warnings from major OEM customers like Volkswagen regarding slowing Chinese demand and high restructuring costs.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin sits at 20.1% while return on equity is 7.4%. Profitability remains constrained by heavy transition costs and low pricing power in legacy auto components.
Switching costs anchor the moat, locking in large enterprise auto manufacturers through multi-year platform design wins. Operating margins sit in the middle of the pack at 44th percentile.
Revenue grew 1.6% to $14.3B over the latest period, reflecting stagnant top-line expansion as the business crawls out of prior cyclical lows.
BorgWarner holds $2.3B in cash against $3.9B in total debt, supported by an interest coverage ratio of 16.1x. Free cash flow reached $1.2B, showing a stronger balance sheet.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 insider bought $501K on the open market. 6 sold $5.9M outside pre-planned sales.
Our sealed record on BWA
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
BorgWarner scores average on the Cluenex quality check (4.6 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 1 insider bought $501K on the open market. 6 sold $5.9M outside pre-planned sales.
Oct 29, 2026, before the open.
See BWA today
- Today's verdict on BWA, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “BorgWarner (BWA)”, https://cluenex.com/stocks/bwa/, data as of Oct 10, 2026.