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BorgWarner Inc. (BWA) Stock Analysis

Breakout setup

SellVALUE-TRAP 1/5High Confidence

Consumer Cyclical · Auto Parts

Sell if holding. Analyst target reached at $61.59 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7).

BorgWarner manufactures clean and efficient technology solutions for combustion, hybrid, and electric vehicles across four segments, generating $14.3B in 2025 net sales. Revenue comes primarily from global OEM automotive and commercial vehicle manufacturers; eProducts (EV/hybrid... Read more

$61.59+11.6% A.UpsideScore 5.2/10#16 of 27 Auto Parts
QualityF-score8 / 9FCF yield8.08%
IncomeYield1.11%(5y avg 1.46%)Payout36.05%sustainable
Stop $57.41Target $68.90(resistance)A.R:R -0.1:1
Analyst target$68.07+10.5%15 analysts
$68.90our TP
$61.59price
$68.07mean
$48
$81

Sell if holding. Analyst target reached at $61.59 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7). Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Score 5.2/10, high confidence.

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 71d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Recent Developments — BorgWarner Inc.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Attractive valuation
Risks
Analyst target reached - limited upside remaining
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7)
Sector modifier (Consumer Cyclical): -1.5

Key Metrics

P/E (TTM)35.5
P/E (Fwd)10.4
Mkt Cap$12.5B
EV/EBITDA7.4
Profit Mgn2.5%
ROE7.3%
Rev Growth0.5%
Beta0.98
Dividend1.11%
Rating analysts21

Quality Signals

Piotroski F8/9

Options Flow

P/C0.34bullish
IV50%elevated
Max Pain$33-47.2% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicMexico
    10-K Item 1A: 'In 2025, we imported approximately $918 million in value to the U.S. Approximately 68% of that value originated in Mexico'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.8
Value Rank
3.2
Quality Rank
4.2
GatesA.R:R -0.1=NEGATIVEMomentum 4.5<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.5>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 71d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
61 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $53.80Resistance $70.31

Price Targets

$57
$69
A.Upside+11.9%
A.R:R-0.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-0.8% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-30 (71d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is BWA stock a buy right now?

Sell if holding. Analyst target reached at $61.59 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7). Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Prior stop was $57.41. Score 5.2/10, high confidence.

What is the BWA stock price target?

Take-profit target: $68.90 (+11.6% upside). Prior stop was $57.41. Stop-loss: $57.41.

What are the risks of investing in BWA?

Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7); Sector modifier (Consumer Cyclical): -1.5.

Is BWA overvalued or undervalued?

BorgWarner Inc. trades at a P/E of 35.5 (forward 10.4). TrendMatrix value score: 7.4/10. Verdict: Sell.

What do analysts say about BWA?

21 analysts cover BWA with a consensus score of 3.7/5. Average price target: $68.

What does BorgWarner Inc. do?BorgWarner manufactures clean and efficient technology solutions for combustion, hybrid, and electric vehicles across...

BorgWarner manufactures clean and efficient technology solutions for combustion, hybrid, and electric vehicles across four segments, generating $14.3B in 2025 net sales. Revenue comes primarily from global OEM automotive and commercial vehicle manufacturers; eProducts (EV/hybrid technologies) accounted for 18% of 2025 net sales.

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