Does BORGWARNER INC have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores BORGWARNER INC (BWA) 37.2 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 31, returns on capital 37, balance-sheet safety 46, capital discipline 38.

Is BWA stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $32.04 per share versus a recent price of $62.44 — 95% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has BWA's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 37.2 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

BORGWARNER INC

BWA · Consumer Discretionary · $12.9B mkt cap · FY2025 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power31

Median gross margin 18.8% over 10y, very stable.

Returns on capital37

Median ROIC 9.4%, above the 9% hurdle in 50% of years.

Balance-sheet safety46

Net debt/EBITDA 1.3x, interest coverage 5x.

Capital discipline38

Owner earnings -1.3%/yr, share count shrinking (buybacks).

Margin of safety

Above valueOn sale

95% above value

Owner earnings (normalized): $597.0M
Est. intrinsic value / share: $32.04
Recent price: $62.44
Discount to value: 95% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

20 years of fundamentals

The business, in plain English

BORGWARNER INC booked $14.3B of revenue in FY2025 in the Consumer Discretionary sector and kept 18.7% of it as gross profit — a moderate-margin business by that measure. After every other cost, 1.9% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $5.3B (FY2007) to $14.3B (FY2025) — about 5.6% a year compounded over 18 years.

It earned 5.0% on invested capital in FY2025, with a median of 12.5% across 18 filed years. The Returns on Capital filter above scores it 37/100.

The balance sheet carried $3.9B of total debt in FY2025 against $527.0M of owner earnings — roughly 7.4 years of owner earnings to retire it all. Balance-Sheet Safety scores it 46/100.

The share count rose 79.2% between FY2008 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 38/100.

Put together: Balance-Sheet Safety is the strongest of the four filters (46/100) and Pricing Power the weakest (31/100), which is how BWA lands at 37/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$14.3B FY2025

Gross marginRevenue kept after cost of goods18.7% FY2025

Return on invested capitalOperating profit on the capital employed5.0% FY2025

Owner earningsCash an owner could take out$527.0M FY2025

Gaps in a line mean that item isn’t in BWA’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale37.2 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — BWA has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Consumer Discretionary context

#232 of 340 scored Consumer Discretionary companies, ranked by Moat Score.

Nearest peers by Moat Score

#230BNED BARNES & NOBLE EDUCATION, INC.37.5 out of 100, No moatNo moat
#231PLCE THE CHILDREN’S PLACE, INC.37.4 out of 100, No moatNo moat
#233LE LANDS' END, INC.37.1 out of 100, No moatNo moat
#234WYGC WENYUAN GROUP CORP.36.8 out of 100, No moatNo moat

Compare BWA with its nearest peers →All Consumer Discretionary companies on the Index →

Common questions about BWA

Does BORGWARNER INC have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores BORGWARNER INC (BWA) 37.2 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 31, returns on capital 37, balance-sheet safety 46, capital discipline 38.
Is BWA stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $32.04 per share versus a recent price of $62.44 — 95% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has BWA's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 37.2 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell BWA. See the disclaimer.