AllAnalyst Report
logoMorningstarMay 05, 2021

BorgWarner Inc.: BorgWarner Reports Solid Q1 as Recovery Continues, Tweaks 2021 Guidance Higher; Maintaining $73 FVE

Symbols
BWA
Sector(s)
Consumer Cyclical
Rating
Current Price
$52.91
Fair Value
Economic Moat
Stewardship
Summary

BorgWarner is a Tier I auto-parts supplier with four operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, cabin heaters, battery heaters, and battery charging. The e-propulsion and drivetrain group produces e-motors, power electronics, control modules, software, automatic transmission components, and torque management products. The two remaining operating segments are the eponymous fuel injector and aftermarket groups. The company's largest customers are Ford and Volkswagen at 13% and 11% of 2020 revenue, respectively. Geographically, Europe accounted for 35% of 2020 revenue, while Asia was 34% and North America was 30%.

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Analyst Profile

Richard Hilgert

Senior Equity Analyst
Richard Hilgert is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers automotive stocks.Hilgert has more than 25 years of experience in automotive industry research, analysis, and forecasting. Before joining Morningstar in 2010, he founded Automotive Financial Research, LLC, a firm that published financial research reports focusing on automotive companies and special industry topics. Before founding Automotive Financial Research, Hilgert provided automotive industry research for Roland Berger Strategy Consultants in Troy, Michigan.From 2004 through 2007, he was director/lead analyst, responsible for Fitch’s credit ratings of the domestic automotive supplier sector.Before joining Fitch, Hilgert covered automotive stocks for Oppenheimer for seven years in Detroit. Previously, he worked in the equity research departments of Stifel Nicolaus from 1995 to 1997 and A.G. Edwards from 1989 to 1995, covering automotive and other industrial companies.Hilgert holds a bachelor’s degree in business administration from Illinois Wesleyan University and a master’s degree in finance from St. Louis University. He is a member of the Society of Automotive Analysts and the Society of Automotive Engineers.