BorgWarnerMEX:BWA 71 Gross Margin % is 19.16% as of Mar. 2026, which is 2% above its 10-year median of 18.80. GuruFocus rates MEX:BWA with a GF Score™ of 71/100 and a GF Value™ of MXN571.13. The stock has 4 warning signs investors should review. Among 1,311 Vehicles & Parts companies, BorgWarner ranks worse than 54.61% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. BorgWarner's Gross Profit for the
three
months ended in Mar. 2026 was MXN12,208 Mil. BorgWarner's Revenue for the
three
months ended in Mar. 2026 was MXN63,710 Mil. Therefore, BorgWarner's Gross Margin % for the quarter that ended in Mar. 2026 was 19.16%.
The historical rank and industry rank for BorgWarner's Gross Margin % or its related term are showing as below:
MEX:BWA'
s Gross Margin % Range Over the Past 10 Years
Min: 18.09 Med: 18.8 Max: 21.58
Current: 18.92
During the past 13 years, the highestGross Margin % of BorgWarner was 21.58%. The lowest was 18.09%. And the median was 18.80%.
MEX:BWA's Gross Margin % is ranked worse than 54.61% of 1311
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs MEX:BWA: 18.92
BorgWarner had a gross margin of 19.16% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BorgWarner was 0.00% per year.
BorgWarner (MEX:BWA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
BorgWarner had a gross margin of 19.16% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
BorgWarner Gross Margin % Related Terms
BorgWarner Gross Margin % Historical Data
* Premium members only.
The historical data trend for BorgWarner's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:BWA vs MOD, AUR, APTV: Gross Margin % Comparison
For the Auto Parts subindustry, BorgWarner's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
BorgWarner Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BorgWarner's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
BorgWarner (MEX:BWA) has a Gross Margin % of 19.16% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on BorgWarner and its competitors. This is near median its historical median of 18.80. Over the past decade, BorgWarner's Gross Margin % has ranged from 18.09 to 21.58. According to the industry distribution chart, BorgWarner ranks #716 out of 1311 companies in the Vehicles & Parts industry, placing it in the top 54.6%.
Is BorgWarner's Gross Margin % too high?
BorgWarner's current Gross Margin % of 19.16% is near median its 10-year median of 18.80. Over the past 10 years, this metric has ranged from a low of 18.09 to a high of 21.58. The Vehicles & Parts industry median Gross Margin % is 19.84. BorgWarner's value of 19.16% is 3.4% below this industry median. Based on the distribution chart, BorgWarner ranks #716 out of 1311 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, BorgWarner has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does BorgWarner's Gross Margin % compare to MOD and AUR?
According to the Vehicles & Parts industry distribution chart, BorgWarner ranks #716 out of 1311 companies for Gross Margin %. This places BorgWarner in the lower half of its industry. The industry median Gross Margin % is 19.84. BorgWarner's value of 19.16% is 3.4% below this benchmark. Historically, BorgWarner's own Gross Margin % has ranged from 18.09 to 21.58 over the past decade. While the company's 10-year median is 18.80 vs. the industry median of 19.84, BorgWarner has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BorgWarner's current Gross Margin % of 19.16% is 3.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on BorgWarner and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BorgWarner's current Gross Margin % is 19.16%, which is near median its own 10-year median of 18.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BorgWarner stock overvalued right now?
BorgWarner (MEX:BWA) has a current Gross Margin % of 19.16%. The stock's GF Value™ is MXN571.13, compared to a current price of MXN1,001.80 — trading 75.4% above its estimated fair value. The current Gross Margin % is 19.16%, which is near median its 10-year median of 18.80 and 3.4% below the Vehicles & Parts industry median of 19.84. BorgWarner's overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For BorgWarner (MEX:BWA), the current Gross Margin % is 19.16% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BorgWarner (MEX:BWA) Overvalued in 2026?
Based on GuruFocus' analysis, BorgWarner stock appears to be overvalued.
The current stock price of MXN1,001.80 is trading 75.4% above its estimated GF Value™ of MXN571.13.
Key valuation signals for MEX:BWA:
Gross Margin %: 19.16% (near median its 10-year median of 18.80)
GF Value™: MXN571.13 vs. price of MXN1,001.80 (75.4% above fair value)
Industry Position: 3.4% below the Vehicles & Parts median (#716 of 1311)
No single metric tells the full story. See the MEX:BWA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BorgWarner is a tier one supplier of turbo and thermal management technologies, drivetrain systems, powerdrive systems, and battery and charging systems mostly to automotive original equipment manufacturers. Its products aim to move a vehicle with as few electrons as possible, resulting in cleaner, cost-optimized, and more-efficient vehicles. Foundational products, the combustion vehicle business, contributes more than 80% to group revenue while BorgWarner transitions to becoming an electric vehicle-centric parts supplier (e-business). In 2024, 23% of the company's revenue was sourced from Volkswagen and Ford. Revenue is well diversified geographically, with approximately a third each generated in North America, Europe, and Asia.
71GF Score
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