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A Holistic Look At BorgWarner Inc (NYSE:BWA)

Veer Mallick

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on BorgWarner Inc (NYSE:BWA) due to its excellent fundamentals in more than one area. BWA is a dependable dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on BorgWarner here.

Adequate balance sheet average dividend payer

BWA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that BWA has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. BWA’s has produced operating cash levels of 0.5x total debt over the past year, which implies that BWA’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:BWA Historical Debt August 29th 18

Income investors would also be happy to know that BWA is a great dividend company, with a current yield standing at 1.5%. BWA has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:BWA Historical Dividend Yield August 29th 18

Next Steps:

For BorgWarner, I’ve put together three key factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for BWA’s future growth? Take a look at our free research report of analyst consensus for BWA’s outlook.
  2. Historical Performance: What has BWA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BWA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.