Price movement of BorgWarner
BorgWarner (BWA) has a market cap of $7.5 billion. BWA fell by 2.9% to close at $34.42 per share as of March 8, 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis is 0.76%, 17.3%, and -20.1%, respectively.
Currently, BWA is trading 5.9% above its 20-day moving average, 2.0% above its 50-day moving average, and 21.8% below its 200-day moving average.
The iShares Russell 1000 Growth ETF (IWF) invests 0.09% of its holdings in BorgWarner. The ETF tracks an index of US large-cap and midcap stocks selected from the Russell 1000 Index with the highest growth characteristics, based on Russell’s style methodology. The YTD price movement of IWF was -3.0% as of March 7, 2016.
The market caps of BorgWarner’s competitors are as follows:
Moody’s revised BorgWarner outlook
Moody’s Investors Service revised the rating outlook of BorgWarner to negative. Moody’s also affirmed the company’s Baa1 senior unsecured ratings and Prime-2 short-term debt rating.
Performance of BorgWarner in recent 4Q15 and 2015
BorgWarner reported fiscal 4Q15 net sales of $2,123.1 million, a rise of 6.6% compared to net sales of $1,991.9 million in fiscal 4Q14. Sales of engine and drivetrain segments rose by 0.96% and 19.5%, respectively, in fiscal 4Q15, compared to fiscal 4Q14.
Its net income and EPS (earnings per share) fell to $125.3 million and $0.56, respectively, in fiscal 4Q15, compared to $139.9 million and $0.61, respectively, in fiscal 4Q14.
Fiscal 2015 results
In fiscal 2015, BWA reported net sales of $8,023.2 million, a fall of 3.4% YoY (year-over-year). Its net income and EPS fell to $609.7 million and $2.70, respectively, in fiscal 2015, compared to $655.8 million and $2.86, respectively, in fiscal 2014.
Meanwhile, its cash and cash equivalents fell by 27.6%, and inventories rose by 43.1% in fiscal 2015. Its current ratio fell to 1.3x, and long-term debt-to-equity rose to 0.59x in fiscal 2015, compared to a current ratio and long-term debt-to-equity ratio of 1.4x and 0.19x, respectively, in fiscal 2014.
The PE (price-to-earnings) and PBV (price-to-book value) ratios of BorgWarner were 12.8x and 2.2x, respectively, as of March 8, 2016.
BorgWarner made the following projections for fiscal 1Q16 and fiscal 2016:
- It expects net sales growth in the range of 8.3%–13.3%. After excluding the impact of foreign currencies and the Remy acquisition, net sales growth is expected to be in the range of -0.3%–2.7%.
- It expects EPS in the range of $0.75–$0.79. After excluding the Remy acquisition, EPS is expected to be in the range of $0.72–$0.76.
- Its expects net sales growth in the range of 13.2%–18.3%. After excluding the impact of foreign currencies and the Remy acquisition, net sales growth is expected to be in the range of 2.5%–5.5%.
- It expects EPS in the range of $3.11–$3.32. After excluding the Remy acquisition, EPS is expected to be in the range of $2.98–$3.18.
- It expects operating income as a percentage of net sales to be above 12%.