Trade-Ideas LLC identified

BorgWarner

(

BWA

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified BorgWarner as such a stock due to the following factors:

  • BWA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $132.5 million.
  • BWA is up 3.8% today from today's close.

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More details on BWA:

BorgWarner Inc. manufactures and sells engineered automotive systems and components primarily for powertrain applications worldwide. The stock currently has a dividend yield of 1.8%. BWA has a PE ratio of 1. Currently there are 9 analysts that rate BorgWarner a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for BorgWarner has been 2.3 million shares per day over the past 30 days. BorgWarner has a market cap of $6.3 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.26 and a short float of 5.1% with 2.59 days to cover. Shares are down 33.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BorgWarner as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, BWA has a quick ratio of 1.68, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.7%. Since the same quarter one year prior, revenues slightly dropped by 7.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Auto Components industry average, but is greater than that of the S&P 500. The net income has decreased by 5.5% when compared to the same quarter one year ago, dropping from $166.60 million to $157.40 million.
  • Net operating cash flow has decreased to $150.90 million or 31.40% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, BORGWARNER INC has marginally lower results.

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