BorgWarner Offers A Rare Combination Of Value And Growth Potential
Summary
- BorgWarner is outgrowing shrinking auto markets, driven by strong eProducts revenue and strategic restructuring to boost profitability and reinvest in high-ROIC opportunities.
- The company’s competitive moat is underappreciated, built on scale, IP, switching costs, and a decentralized, agile operating model.
- BorgWarner is well-positioned to benefit from the hybrid and EV transition, with rising content per vehicle and robust organic growth, supported by selective M&A.
- Despite strong fundamentals and growth prospects, BorgWarner trades at a very low valuation, offering significant potential upside as EVs and hybrids continue to gain market share.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BWA, ALV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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