BorgWarner (BWA) has a market cap of $7.4 billion. It rose by 2.0% to close at $33.94 per share on July 26, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 6.5%, 11.3%, and -20.9%, respectively, on the same day. BWA is trading 10.4% above its 20-day moving average, 5.0% above its 50-day moving average, and 6.1% below its 200-day moving average.
Related ETF and peers
The Vanguard Mid-Cap Growth ETF (VOT) invests 0.69% of its holdings in BorgWarner. The ETF tracks a market-cap-weighted index of mid-cap growth companies selected by the Center for Research in Security Prices. The YTD price movement of VOT was 7.8% on July 26.
The market caps of BorgWarner’s competitors are as follows:
BorgWarner declares dividend
BorgWarner has declared a quarterly cash dividend of $0.13 per share on its common stock. The dividend will be paid on September 15, 2016, to shareholders of record on September 1, 2016.
Performance in fiscal 1Q16
BorgWarner reported fiscal 1Q16 net sales of $2.3 billion, a rise of 14.3% from the net sales of $2.0 billion in fiscal 1Q15. The company’s gross profit margin fell by 5.6%. Its operating income rose by 1.8% between fiscals 1Q15 and 1Q16.
Its net income and EPS (earnings per share) fell to $164.1 million and $0.75, respectively, in fiscal 1Q16, compared with $178.9 million and $0.79, respectively, in fiscal 1Q15. It reported non-GAAP (non-generally accepted accounting principles) EPS of $0.80 in fiscal 1Q16, a rise of 2.6% from fiscal 1Q15.
BorgWarner’s cash fell by 32.1% and its inventories rose by 4.5% between fiscals 4Q15 and 1Q16. Its current ratio rose to 1.4x and its DE (debt-to-equity) ratio fell to 1.38x in fiscal 1Q16, compared with 1.3x and 1.43x, respectively, in fiscal 4Q15.
The company made the following projections for 2Q16:
- net sales growth of 10.6%–16.0%
- net sales growth of 1.5%–4.8%, which excludes the impact of foreign currencies and the Remy acquisition
- EPS of $0.78–$0.83, which includes ~$0.03 per share contributed by the Remy acquisition
The company made the following projections for 2016:
- net sales growth of 12.7%–17.5%
- net sales growth of 2.5%–5.5%, which excludes the impact of foreign currencies and the Remy acquisition
- EPS of $3.11–$3.32, which includes $0.12 per share contributed by the Remy acquisition
In the next part, we’ll discuss Graphic Packaging Holding Company.