Question 1

What is the ESG rating for BWA?

Accepted Answer

BorgWarner Inc. has the following ESG ratings: MSCI ESG Rating: 46.4.

Question 2

What are the main strengths of investing in BWA?

Accepted Answer

The main strengths of investing in BorgWarner Inc. include: Strong EV Transition Leadership: eProduct sales grew 47% year-over-year with significant new business awards including high-volume hybrid eMotor contracts, positioning BorgWarner to capture 50% revenue from EVs by 2030 while maintaining profitability during automotive electrification transformation., Excellent Financial Performance & Margins: Raised EBIT margin guidance to 9.8-10.0% for 2024 while projecting 2025 EPS of $4.27, demonstrating strong pricing power and operational efficiency with 13 consecutive years of dividend payments and active share buyback programs., Balanced Technology Portfolio: Successfully maintains leadership across traditional combustion engines (80% of revenue) and electric powertrains, with hybrid expertise providing competitive advantage during industry transition and targeting 2+ percentage points above-market growth in both segments..

Question 3

What are the potential drawbacks of investing in BWA?

Accepted Answer

Potential drawbacks of investing in BorgWarner Inc. include: High Customer Concentration Risk: Significant business exposure with 14% revenue from Ford Motor Company and 25% total revenue from Volkswagen and Ford combined in 2023, creating vulnerability to individual customer challenges and reducing negotiating power with major OEM partners., EV Market Adoption Uncertainty: Softness in electric vehicle market could slow eProducts segment growth, while company already exited EV charging business due to lack of scale, indicating challenges in capturing all electrification opportunities and potential revenue timing risks., Industry Transition Execution Risk: Complex navigation required between declining traditional combustion engine demand and ramping electric powertrain business, with ongoing tariff management challenges and pressure to pass increased costs to customers during automotive industry transformation..

Question 4

What are the key financial metrics for BWA?

Accepted Answer

Key financial metrics for BorgWarner Inc. include: Market Cap: $7.09 billion, Current Price: $166.01, Dividend Yield: 5.30%.

BorgWarner Inc.

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BWA

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