Switch to:
Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 4/10

Interest Coverage 7.20
TRW's Interest Coverage is ranked lower than
65% of the 1094 Companies
in the Global Auto Parts industry.

( Industry Median: 17.51 vs. TRW: 7.20 )
Ranked among companies with meaningful Interest Coverage only.
TRW' s Interest Coverage Range Over the Past 10 Years
Min: 0  Med: 0 Max: 7.2
Current: 7.2
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 2/10

» TRW's 10-Y Financials

Financials (Next Earnings Date: 0)

Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow
Oprt. Cash Flow & Net Income

» Details

Guru Trades

Q3 2014

TRW Guru Trades in Q3 2014

Jeremy Grantham 297,400 sh (New)
David Dreman 557 sh (New)
Caxton Associates 13,999 sh (New)
Mario Gabelli 1,147,850 sh (New)
Ken Fisher Sold Out
Robert Olstein Sold Out
John Hussman Sold Out
Paul Tudor Jones Sold Out
Steven Cohen Sold Out
Jim Simons Sold Out
Joel Greenblatt 5,873 sh (-0.10%)
Richard Pzena 3,361,631 sh (-14.78%)
RS Investment Management 271,112 sh (-50.64%)
Richard Snow 32,275 sh (-74.85%)
» More
Q4 2014

TRW Guru Trades in Q4 2014

Jim Simons 300,100 sh (New)
Jeff Auxier 4,000 sh (New)
First Eagle Investment 25,000 sh (New)
Ruane Cunniff 7,500 sh (New)
Joel Greenblatt 349,773 sh (+5855.61%)
Jeremy Grantham 836,020 sh (+181.11%)
Mario Gabelli 1,323,150 sh (+15.27%)
Caxton Associates 13,999 sh (unchged)
David Dreman Sold Out
Richard Snow Sold Out
RS Investment Management Sold Out
Richard Pzena 2,932,176 sh (-12.78%)
» More
Q1 2015

TRW Guru Trades in Q1 2015

Louis Moore Bacon 19,161 sh (New)
Eric Mindich 1,162,299 sh (New)
Jim Simons 1,155,700 sh (+285.10%)
Joel Greenblatt 380,112 sh (+8.67%)
Mario Gabelli 1,416,450 sh (+7.05%)
Ruane Cunniff 7,500 sh (unchged)
First Eagle Investment 25,000 sh (unchged)
Caxton Associates Sold Out
Jeremy Grantham Sold Out
Jeff Auxier 3,950 sh (-1.25%)
Richard Pzena 2,469,544 sh (-15.78%)
» More
Q2 2015

TRW Guru Trades in Q2 2015

Ruane Cunniff Sold Out
Mario Gabelli Sold Out
Richard Pzena Sold Out
First Eagle Investment Sold Out
Eric Mindich Sold Out
Louis Moore Bacon Sold Out
Jim Simons Sold Out
Joel Greenblatt Sold Out
Jeff Auxier Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with TRW

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Business Description

Industry: Autos » Auto Parts
Traded in other countries:TQT.Germany,

TRW Automotive Holdings Corp is a Delaware corporation formed in 2002. The Company is a supplier of automotive systems, modules and components to automotive original equipment manufacturers and related aftermarkets. It conducts substantially all of its operations through subsidiaries. These operations encompass the design, manufacture and sale of active and passive safety related products and systems. Active safety related products and systems principally refer to vehicle dynamic controls (braking and steering) and electronics (driver assistance systems), and passive safety related products and systems principally refer to occupant restraints (airbags and seat belts) and electronics (airbag electronic control units, and crash and occupant weight sensors). It operates its business in four segments: Chassis Systems, Occupant Safety Systems, Electronics and Automotive Components. The Chassis Systems segment focuses on the design, manufacture and sale of products and systems relating to braking, steering, modules, and linkage and suspension. It sells its Chassis Systems products and systems to OEMs and other Tier 1 suppliers. The Occupant Safety Systems segment focuses on the design, manufacture and sale of products and systems relating to airbags, seat belts, and steering wheels. It sells its Occupant Safety Systems products and systems to OEMs and other Tier 1 suppliers. It also sells these products and systems to OEM service organizations. The Electronics segment focuses on the design, manufacture and sale of electronics components and systems in the areas of safety, chassis, radio frequency, powertrain, and driver assistance systems, including cameras and radars. It sells its Electronics products and systems to OEMs and to its Chassis Systems segment (braking and steering applications). It also sells these products and systems to OEM service organizations. The Automotive Components segment focuses on the design, manufacture and sale of body controls, engine valves, and engineered fasteners and components. It sells its Automotive Components products to OEMs and other Tier 1 suppliers, and to certain non-automotive markets and customers. It also sells these products to OEM service organizations. In addition, it sells some engine valve and body control products to independent distributors for the automotive aftermarket. The Company's principal competitors include Advics, Bosch, Continental, JTEKT, Nexteer and ZF in the Chassis Systems segment; Autoliv, Key Safety, and Takata in the Occupant Safety Systems segment; Autoliv, Bosch, Continental, Delphi, Denso, and Magna in the Electronics segment; and Delphi, Eaton, ITW, Kostal, Nifco, Raymond, Tokai Rika, and Valeo in the Automotive Components segment. Its operations are subject to a variety of federal, state, local and international laws and regulations which may have a direct or indirect effect on its business.

Guru Investment Theses on TRW Automotive Holdings Corp

Robert Olstein Comments on TRW Automotive Holdings - Nov 21, 2014

Positions eliminated during the past quarter include: ABB Ltd. (ABB), Ann Inc. (ANN), Baxter International (BAX), International Game Technology (IGT), TRW Automotive Holdings (TRW), and URS Corporation (URS).

On July 10, 2014, TRW Automotive Holdings (TRW) confirmed that it has received a preliminary, non-binding proposal from ZF Friedrichshafen AG to acquire the company. Although TRW did not disclose terms at the time of the July announcement, Bloomberg News reported the acquisition value at $110 to $112.50 per TRW share. As value investors who usually have to wait patiently for a company to improve operating results and for the market to ultimately recognize the value we see, these acquisitions not only came as a pleasant surprise, they allowed us to reach our value in each of these companies over a much shorter holding period.

From Robert Olstein (Trades, Portfolio)’s All Cap Value Fund Q3 2014 Letter to Shareholders - When Boring Becomes Exciting.

Check out Robert Olstein latest stock trades

Mario Gabelli Comments on TRW Automotive Holdings Corp - Oct 28, 2014

TRW Automotive Holdings Corp. (2.7%) (TRW)($101.30 - NYSE) is a Michigan based supplier of automotive systems and components with a focus on active and passive safety applications. On July 10, 2014, TRW was the subject of speculation, later confirmed by the company, regarding a possible transaction with ZF Friedrichshafen AG of Germany. After months of negotiations and the divestiture of a joint venture by ZF to facilitate the transaction, a $105.60 per share cash merger deal was announced on September 15, 2014. The merger is subject to approval from a majority of TRW’s shareholders as well as antitrust approvals in several jurisdictions. The deal is also subject to the Committee on Foreign Investment in the United States (CFIUS) review and is expected to close by the first half of 2015.

From Mario Gabelli (Trades, Portfolio)’s ABC Fund Q3 2014 Commentary.

Check out Mario Gabelli latest stock trades

Bill Nygren Comments on TRW Automotive Holdings Corp - Oct 07, 2014

On the morning of September 15, TRW Automotive Holdings (TRW) announced it was going to be acquired by ZF Friedrichshafen for $105.60 per share. This was of more than a passing interest to us because at the time TRW was the largest holding in Oakmark Select. It was also the culmination of a process we applauded because TRW stock began 2012 at $33 per share, and was only up to $74 at the end of 2013. Over the years, takeovers have contributed significantly to Oakmark and Oakmark Select’s returns. In 2014 both Funds benefited when AT&T offered to buy DirecTV and when Actavis purchased Forest Laboratories. Additionally, Oakmark Fund owned Covidien, which increased from $72 to $92 after announcing its merger with Medtronic. Obviously, we welcome takeover activity in any of our holdings.

But when TRW announced news of the acquisition at 8:16 a.m. Chicago time, it took less than an hour – 9:04 to be exact – for the first law firm to announce its threat to sue TRW for accepting too low a price. Within 10 days I had counted at least 27 similar press releases from various law firms purporting to represent shareholders, threatening legal action to block the takeover. How do you square the law firms all jumping in to protect the shareholders while as a large shareholder ourselves, we were cheering the news?

Merger objection lawsuits aren’t unique to the TRW deal. In fact, each of the takeovers we were invested in had multiple law firms trying to block the deals, alleging that shareholders weren’t getting paid a high enough price. And it isn’t just those takeovers. Within minutes of almost any takeover announcement, many law firms race to file press releases. Ten years ago, less than 10% of announced acquisitions of public companies were followed by merger objection suits. Today, almost every deal produces multiple suits. The overwhelming majority of these suits result in zero benefit to the shareholders, but almost all result in payments to law firms. Effectively, these suits have now become just another unfortunate cost of doing business.

Though we believe these suits are mostly frivolous, it is definitely worth recognizing that executives of selling companies may be conflicted and in a position to capture benefits for themselves that don’t get passed through to other shareholders. Those may include higher-than-market compensation, job security for redundant positions, or a slew of perks that make their new jobs more rewarding. So I’d like to take the opportunity to discuss how we at Oakmark analyze acquisition proposals.

When we first purchased TRW in late 2011, our belief was that the stock was worth about $63. We developed that estimate of value in several ways. We looked at acquisition prices of other industrial businesses. We looked at the value of discounted cash flows based on our estimate of future earnings. And we looked at historical stock market valuations for businesses that had similar fundamental characteristics. It is a process we use for all companies we purchase, and it attempts to get us into the right ballpark for estimating value. It is definitely not an exercise in precision – when we say we estimate value at $63, it really means we believe the right range is something like $57 to $70. We would mock any of our analysts who tried to show precision to the right of the decimal point; we believe that if we are within 10% we are doing a good job. We simply don’t believe you can get more accurate based on public data. But fortunately, lack of precision was no problem with TRW because at the time we purchased it the stock traded at $32.

During the ensuing three years, TRW earned about $20 per share cumulatively and used some of that capital to buy back undervalued stock. Over that time our forecast of future earnings grew. By last month our best estimate of value had grown to $109. The acquisition price of $105.60 was a little bit below our best guess, but well within 10%. That left us with two important questions: Was the bidding process open to other interested buyers? Were the board and management incentivized to achieve the maximum price?

Let’s take the second question first. Did the management own enough stock and options that they were beneficiaries of a higher price? This is a question that is important to us not just when a company is getting acquired, but throughout our term of ownership. We believe it is too much to expect that people will act against their own economic interests, so we like to see management do well when their shareholders also do well. Fortunately, their incentives are easily quantifiable because the information is readily available in the proxy statement and 10K. As of year-end, management and directors owned or held rights to purchase over $500 million of TRW stock, valued at the acquisition price. Each dollar by which they could increase the price benefited them by just over $5 million. Clearly, by acting in their own economic interest, they were also acting in the interest of all the shareholders.

Finally, was it an open process? Again, the publicly available filings help answer this question. Any time a public company is acquired it is required to make a filing that details how potential buyers were identified and that discloses what took place during negotiations, including whether or not other offers were received. That document for TRW is not available yet, but will be by the time you read this letter. But here’s what we know so far. On the morning of July 10 Bloomberg reported that ZF was considering purchasing TRW for $11 billion to $12 billion ($95 - $103 per share). Within a couple of hours of that report TRW publicly confirmed the rumor; it had received a bid but did not disclose the price or the suitor. TRW said it was “evaluating the bid as well as other options.” Translating from legalese, this was an open invitation to anyone interested in acquiring the company to come forward. In press releases later that day, ZF was identified as the suitor. Nine weeks later the deal was announced several dollars above the high end of the rumored range. In the interim negotiations, TRW must have had some leverage to extract a few more dollars.

We know that TRW management would have profited handsomely from a higher-priced deal and that any interested parties had nine full weeks to indicate their interest. We conclude that ZF’s offer is highly likely to have been the best available. Despite the price being slightly below our estimate of value, when the facts line up like that, we would always prefer to have the deal accepted. That way, we can sell our stock at a much higher percentage of our value estimate, even if it isn’t quite 100%, and redeploy the funds into stocks that we believe are selling at much larger discounts to our estimate of value. (Note: In the highly unlikely event that the proxy statement discloses that a credible, higher bidder was shut out from the process, our position will change 180 degrees, and we will be vocal. But given the circumstances, I think that is less likely than a snowless winter in Chicago.)

Congratulations on a job well done to TRW Chief Executive Officer John Plant and Chief Financial Officer Joe Cantie. Congratulations also to Mike White of DirecTV, Brent Saunders of Forest Labs, and Joe Almeida of Covidien. Our Funds have benefited tremendously from your stewardship. Speaking on behalf of all our shareholders, thank you!

From Bill Nygren (Trades, Portfolio)'s Third Quarter 2014 Market Commentary.

Check out Bill Nygren latest stock trades



Buy Back

Yield on cost (5-Year) 3.90
TRW's Yield on cost (5-Year) is ranked higher than
64% of the 1485 Companies
in the Global Auto Parts industry.

( Industry Median: 2.74 vs. TRW: 3.90 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
TRW' s Yield on cost (5-Year) Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0
Current: 3.9

Valuation & Return


More Statistics

Revenue (TTM) (Mil) $17,239
EPS (TTM) $ 3.79
Short Percentage of Float0.82%
52-Week Range $78.41 - 107.25
Shares Outstanding (Mil)115.92

Analyst Estimate

Dec15 Dec16 Dec17
Revenue (Mil $) 16,308 17,439 17,743
EPS ($) 7.57 8.31 8.92
EPS w/o NRI ($) 7.57 8.31 8.92
EPS Growth Rate
(3Y to 5Y Estimate)
Dividends Per Share ($)
» More Articles for TRW


Articles On GuruFocus.com
GAMCO Investors' Largest Sales During Second Quarter Sep 14 2015 
Weekly 52-Week Highs Highlight: Motorola Solutions, TRW Automotive Holdings, Royal Caribbean Cruises Sep 09 2015 
Robert Olstein Comments on TRW Automotive Holdings Nov 21 2014 
The Olstein All Cap Value Fund Q3 2014 Letter to Shareholders - When Boring Becomes Exciting Nov 21 2014 
Mario Gabelli Comments on TRW Automotive Holdings Corp Oct 28 2014 
Mario Gabelli's ABC Fund Q3 2014 Commentary Oct 28 2014 
Bill Nygren Comments on TRW Automotive Holdings Corp Oct 07 2014 
Bill Nygren’s Third Quarter 2014 Market Commentary Oct 07 2014 
Technological Innovation Will Ensure a Profitable Future for This Auto Parts Supplier Apr 18 2014 
An Auto Parts Supplier With a Great Outlook Feb 23 2014 

More From Other Websites
ZF Weighs More Deals, Asset Sales Following TRW Acquisition Jun 02 2016
Air bag makers eye boost from new India road safety rules Sep 12 2015
Pharmacyclics (PCYC), DIRECTV (DTV), Actavis (ACT): Farallon Capital Betting On Merger Arb Plays May 19 2015
Nancy Havens-Hasty’s Latest Risk Arbitrage Picks May 07 2015
U.S. allows merger of ZF Friedrichshafen, TRW with divestitures May 05 2015
TRW beats 1Q profit forecasts May 05 2015
KeyCorp (KEY), NRG Energy Inc (NRG), TRW Automotive Holdings Corp. (TRW): Carlson Capital’s Top... Apr 02 2015
Thermo Fisher Scientific, Ingersoll-Rand plc: Billionaires Are Piling Into These 5 Capital Goods... Feb 24 2015
TRW Automotive tops Q4 profit estimates, aids Takata on air bag parts Feb 13 2015
TRW 4th-quarter profit tops estimates Feb 13 2015
TRW reports 4Q loss Feb 13 2015
Jeep recalls 228K Cherokees for air bag problem Feb 02 2015
TRW-made circuits to be replaced in air bag vehicle recall - NHTSA Jan 31 2015
Sanden agrees to plead guilty to price fixing in U.S., pay fine Jan 27 2015
TRW hires 650 for self-driving car tech - Automobilwoche Jan 25 2015
ZF Friedrichshafen issues 2.2 bln eur bonded loan to fund TRW deal Jan 12 2015
ZF Friedrichshafen says would look at small deals as integrates TRW Dec 18 2014
U.S. says Takata response to nationwide air bag recall order "disappointing" Dec 02 2014
Honda in talks with other suppliers for Takata air bag fix -WSJ Nov 21 2014
TRW Automotive shareholders approve ZF acquisition Nov 20 2014

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)