BorgWarner Inc. cash flow to debt ratio of 39.44% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

BorgWarner Inc.'s free cash flow has increased 73.13% from $681.00M last year to $1.18B, signaling increasing performance

BorgWarner Inc.'s debt to equity ratio is 0.72, which means that the company's assets are unhealthy financed, signaling financial risk.

BorgWarner Inc.'s debt has decreased relative to shareholder equity from 0.79 last year to 0.72 today, signaling strengthened financials

BorgWarner Inc. has a net debt to EBITDA ratio of 1.39x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

BorgWarner Inc.'s interest coverage ratio of 17.98 indicates that earnings with good margin can cover interest payments on company debt

BorgWarner Inc.'s profit margin has increased (20.55%) in the last year from 2.40% to 2.89%, signaling increasing performance

BorgWarner Inc.'s short-term assets of $6.79B exceed its short-term liabilities of $3.28B

BorgWarner Inc.'s return on assets of 2.98% is lower than the 5.00% threshold, indicating inefficient asset utilization

BorgWarner Inc.'s return on equity of 7.37%, is lower than 15.00%, indicating bad performance

BorgWarner Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

BorgWarner Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

BorgWarner Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

BorgWarner Inc. has a free cash flow yield of 8.30%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

BorgWarner Inc.'s yearly earnings has decreased 18.05% since last year from $338.00M to $277.00M, signaling decreasing performance

BorgWarner Inc.'s yearly revenue has increased 1.63% since last year from $14.09B to $14.32B, signaling increasing performance

ROIC 9.12% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

BorgWarner Inc.'s 3-year revenue CAGR of 4.25% is positive, indicating growing revenue over the past 3 years

BorgWarner Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

BorgWarner Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

BorgWarner Inc. is undervalued relative to its fair value price of 92.07 based on Discounted Cash Flow model

BorgWarner Inc. has an earnings yield of 2.93%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

BorgWarner Inc. is overvalued relative to its fair value price of 61.86 based on EBITDA multiple model

BorgWarner Inc. has an EV/EBITDA ratio of 11.98x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

BorgWarner Inc. is undervalued relative to its fair value price of 114.96 based on Earnings Fair Value model

BorgWarner Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

BorgWarner Inc. has a price-to-book ratio of 2.44x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

BorgWarner Inc. has a price-to-sales ratio of 0.99x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue