Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto supplier BorgWarner (NYSE: BWA ) earned a respected four-star ranking.
With that in mind, let's take a closer look at BorgWarner's business and see what CAPS investors are saying about the stock right now.
BorgWarner facts
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Headquarters (Founded)
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Auburn Hills, Mich. (1987)
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Market Cap
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$8.2 billion
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Industry
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Auto parts and equipment
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Trailing-12-Month Revenue
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$5.32 billion
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Management
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CEO Timothy Manganello (since 2003)
CFO Robin Adams (since 2004)
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Return on Equity (Average, Past 3 Years)
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5%
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Cash/Debt
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$432.2 million / $1.2 billion
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Competitors
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Honeywell International (NYSE: HON )
Lear (NYSE: LEA )
Johnson Controls (NYSE: JCI )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 91% of the 329 members who have rated BorgWarner believe the stock will outperform the S&P 500 going forward. These bulls include mj2boogie and IGUESS2.
Earlier this year, mj2boogie tapped BorgWarner as a rather greenish opportunity: "Continued emphasis on higher technology to make improvements in auto efficiency will help the Borg. Resistance is futile!"
As a recognized leader in fuel-efficient auto parts, BorgWarner remains a highly rated CAPS play on increasingly strict emission and fuel economy regulations. Over the next five years, BorgWarner is even expected to grow its bottom line (18.1%) at a faster pace than listed rivals Honeywell (15.3%), Lear (11.6%), and Johnson Controls (16.1%), as well as other auto parts plays like WABCO (NYSE: WBC ) (15%) and Sorl Auto (Nasdaq: SORL ) (17.1%).
CAPS member IGUESS2 elaborates on the bull case:
According to [BorgWarner's] executive vice president and CFO, Robin Adams, much of the growth they are enjoying is coming from Europe and Asia which or adapting stringent environmental standards. Only about 25% of growth is coming from North America. The company's three year backlog is now at $2.3 bil. Up almost 30% from last year.
What do you think about BorgWarner, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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