BorgWarner Inc. logo BWA - BorgWarner Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 21
HOLD 15
SELL 2
STRONG
SELL
0
| PRICE TARGET: $86.56 DETAILS
HIGH: $95.00
LOW: $79.00
MEDIAN: $85.00
CONSENSUS: $86.56
UPSIDE: 41.21%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C 55.2 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 20%
D- 30.7
  • 5yr Avg ROIC 5.2% 36/100
  • Operating Margin Trend -1.06 pp/yr 19/100
Contributes 6.1 pts toward composite.

Capital Efficiency

Weight: 15%
C 55.5
  • 5yr Avg ROE 8.5% 53/100
  • 5yr Share-Count CAGR 0.2% 61/100
Contributes 8.3 pts toward composite.

Growth Quality

Weight: 15%
D+ 43.7
  • 5yr Revenue CAGR 7.1% 70/100
  • 5yr EPS CAGR -11.4% 0/100
  • Revenue-Growth Years (5) 3/5 60/100
Contributes 6.6 pts toward composite.

Cash Generation

Weight: 15%
B- 66.2
  • 5yr FCF Margin 5.9% 54/100
  • 5yr FCF/NI Conversion 1.92x 82/100
Contributes 9.9 pts toward composite.

Balance Sheet

Weight: 20%
B+ 76.4
  • Net Debt / EBITDA 1.36x 80/100
  • Interest Coverage (EBIT/Int) 5.69x 68/100
  • Altman Z-Score 3.07 81/100
Contributes 15.3 pts toward composite.

Stability

Weight: 15%
C+ 59.8
  • EPS Volatility (σ/μ) 0.37 48/100
  • Negative-Revenue Years (5) 2/5 60/100
  • Piotroski F-Score 7 78/100
Contributes 9.0 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Holding

5 of 5 gurus held; 1 new buy; 1 added; 3 trimmed; 1 full exit.

Holders
5 +1
Avg Δ position
+5929.8%
New buys
1
Full exits
1
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (15%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.