Is the business good?
How good a business is BWA?
BorgWarner Inc. earns 6.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.0%
Return on invested capital · cost of capital 9.0% · 3.0 points below what the capital costs: growth destroys value
- Share count, year on year
- −5.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.1% |
| FY2021 | 7.7% |
| FY2022 | 8.0% |
| FY2023 | 8.2% |
| FY2024 | 3.9% |
| FY2025 | 3.7% |
Details›
- Net income, trailing twelve months
- $415M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.