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Is this Large Market Cap Stock target price reasonable for BorgWarner Inc. (NYSE:BWA)?

The company in question is, BorgWarner Inc. (NYSE:BWA) currently with a stock price of 34.62 (0.22% today). The market cap for BorgWarner Inc. is 7363.58, and is in the sector Consumer Goods, and Auto Parts industry. The target price for BorgWarner Inc. is 39.21. Currently BorgWarner Inc. is trading with a P/E of 12.47, and a forward P/E of 9.7. Average volume for BorgWarner Inc. is 2412.72 and so far today it is 891139.

Performance in the last year for BorgWarner Inc. has been -19.21%. For EPS growth, BorgWarner Inc. has seen a growth of -5.70%, and is looking to grow in the next year to 9.57%. More long term stats show that EPS growth has been 12.00% over the last five years and could be 10.55% for the next five years. BorgWarner Inc. has seen sales growth quarter over quarter at 14.60%, with EPS growth quarter over quarter at 16.10%. The 20-day simple moving average is 0.15%, with the 200-day simple moving average coming to 2.36%.

Since the IPO date for BorgWarner Inc. on the 8/13/1993, BorgWarner Inc. has seen performance year to date to be -19.16%. With BorgWarner Inc. trading at 34.62, the dividend yield is 1.51%, and the EPS is 2.77.

So could BorgWarner Inc., be undervalued? Well as said before P/E is 12.47. The PEG is 1.18, P/S is 0.86 and the P/B is at 2.02. The P/cash is 14.88, with P/free cash flow at 27.31.

BorgWarner Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1. This is with long term debt/equity at 0.58, and total debt/equity at 0.72.

In terms of margins, BorgWarner Inc. has a gross margin of 21.00%, an operating margin of 11.30% and a profit margin of 7.10%.Payout ratio for BorgWarner Inc. is 18.70%. Return on assets come to 7.10% with return on investment coming to 10.80%.

Insider ownership for BorgWarner Inc., is at 0.40% and institutional ownership comes to 96.60%. Outstanding shares are at 213.19. While shares float is 213.11. The float short is currently 6.24%, and short ratio is 5.51.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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