BorgWarner Inc. (BWA) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, BWA scores 37 out of 100 with a letter grade of D-, labeled "Roarable Sell — Vulnerable Balance Sheet & Flow." Across the five pillars: the Fundamental Cash Engine scores 11/20 (ROIC 5.5%; FCF yield -3.03%), indicating that the company's return on invested capital is modest and its free cash flow yield is negative, so the business is not currently generating surplus cash relative to its market value. Whale/13F Flow scores 6/20 (institutional accumulation and options positioning), a weak institutional signal. Insider Conviction scores 5/20 (SEC Form 4 and Congressional PTR cluster flow), indicating limited insider-side confidence in the data provided. Macro Regime Fit scores 3/20 (Beta 1.02; sector sensitivity), the lowest pillar, implying the stock tracks broad market movement without a distinct macro tailwind in this rating. Forensic Balance Sheet scores 12/20 (Altman Z 2.94; Piotroski F 5/9; Debt/Equity 0.72), the strongest pillar, suggesting the balance sheet is serviceable rather than distressed.

For a prospective investor evaluating the stock today, the upside case depends on improvement in cash conversion and returns, since the current 5.5% ROIC and negative FCF yield offer little evidence of self-funded growth. Valuation is a central tradeoff: the trailing P/E of 39.2 and forward P/E of 36.5 are elevated relative to the modest margins shown, meaning the price assumes a meaningful earnings recovery. The balance sheet provides some downside cushion, but the combined pillar profile reflects a weak flow and macro-fit picture alongside it.

BorgWarner Inc. (BWA) is a NYSE-listed issuer classified in the Consumer Discretionary sector and the Auto Parts:O.E.M. industry, per the company profile. The profile section does not describe its specific products, customers, or revenue model. Not available in source data for detailed product lines, end markets, or monetization mechanics beyond sector and industry classification.

Per the SEC financials, reported revenue moved from $14198.0M (FY 2023) to $14086.0M (FY 2024) and $14316.0M (FY 2025), while operating income declined from $1160.0M to $546.0M and then $536.0M over the same span. Net income fell from $625.0M to $338.0M and $277.0M. Per the market data, the operating margin is 3.7%, net margin 1.9%, gross margin 18.7%, and ROIC 5.5%. Per the Roarable RQD rating, the Altman Z-Score is 2.94, the Piotroski F-Score is 5/9, and Debt/Equity is 0.72. Taken together, the balance sheet appears serviceable, while profitability has compressed across the reported periods.

Per the recent news and catalysts feed, six Yahoo Finance, GuruFocus, Seeking Alpha, Stock Titan, and MarketBeat items relate to BWA. Four are tagged RISK WATCH (red light): an article on whether the shares remain undervalued after an "AI power story" rally, a GuruFocus item noting the stock is down 4.7% and still overvalued with a GF Score of 79/100, a Seeking Alpha piece on the stock being compelling ahead of earnings, and a Stock Titan profile. One Yahoo Finance item is tagged CATALYST (green light), referencing analyst fair value edging higher on auto and power growth. One MarketBeat item notes the shares gapping up. The feed does not provide the underlying figures or analyst estimates behind these headlines. Per the Butterfly Supply-Chain Graph, the supply chain is listed as NONE, with no butterfly links and no proprietary signals.

Per the Butterfly Supply-Chain Graph, the supply chain is listed as NONE, with no upstream or downstream links recorded and no proprietary signals. Not available in source data for upstream supplier dependencies, downstream customer concentration, or sector correlation measures. A prospective investor should monitor how the auto-industry demand cycle and the power-related growth narrative referenced in the news feed interact with the company's thin operating margin of 3.7%, since small shifts in volume or cost could have an outsized effect on earnings.

• What are the company's specific product lines, end markets, and largest customers, given the profile provides only sector and industry classification?
• What are the FY 2025 and prior-year free cash flow and cash balances, since these fields are reported as N/A in the financials?
• What analyst consensus ratings and price targets exist, given the analyst data is unavailable?
• Which insider, 13F, and Congressional transactions drive the insider and whale pillar scores, given the holders data is unavailable?
• What specific fundamental drivers underlie the "AI power" narrative and the analyst fair value revisions referenced in the news feed?