BorgWarnerMEX:BWA 77 Interest Coverage is 14.16 as of Mar. 2026, which is 8% below its 10-year median of 15.38. GuruFocus rates MEX:BWA with a GF Score™ of 77/100 and a GF Value™ of MXN571.13. The stock has 4 warning signs investors should review. Among 1,066 Vehicles & Parts companies, BorgWarner ranks better than 61.82% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. BorgWarner's
Operating Income
for the
three
months ended in Mar. 2026 was MXN6,384 Mil. BorgWarner's Interest Expense for the
three
months ended in Mar. 2026 was MXN-451 Mil.
BorgWarner's interest coverage for the quarter that ended in Mar. 2026 was 14.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for BorgWarner's Interest Coverage or its related term are showing as below:
MEX:BWA'
s Interest Coverage Range Over the Past 10 Years
Min: 12.67 Med: 15.38 Max: 22.36
Current: 14.06
MEX:BWA's Interest Coverage is ranked better than 61.82% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs MEX:BWA: 14.06
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
BorgWarner Interest Coverage Related Terms
BorgWarner Interest Coverage Historical Data
* Premium members only.
The historical data trend for BorgWarner's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:BWA vs MOD, AUR, APTV: Interest Coverage Comparison
For the Auto Parts subindustry, BorgWarner's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Interest Coverage distribution charts can be found below:
* The bar in red indicates where BorgWarner's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
BorgWarner (MEX:BWA) has a Interest Coverage of 14.16 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on BorgWarner and its competitors. This is near median its historical median of 15.38. Over the past decade, BorgWarner's Interest Coverage has ranged from 12.67 to 22.36. According to the industry distribution chart, BorgWarner ranks #407 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 38.2%.
Is BorgWarner's Interest Coverage too high?
BorgWarner's current Interest Coverage of 14.16 is near median its 10-year median of 15.38. Over the past 10 years, this metric has ranged from a low of 12.67 to a high of 22.36. The Vehicles & Parts industry median Interest Coverage is 8.30. BorgWarner's value of 14.16 is 70.7% above this industry median. Based on the distribution chart, BorgWarner ranks #407 out of 1066 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, BorgWarner has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does BorgWarner's Interest Coverage compare to MOD and AUR?
According to the Vehicles & Parts industry distribution chart, BorgWarner ranks #407 out of 1066 companies for Interest Coverage. This puts BorgWarner in the upper half of its industry. The industry median Interest Coverage is 8.30. BorgWarner's value of 14.16 is 70.7% above this benchmark. Historically, BorgWarner's own Interest Coverage has ranged from 12.67 to 22.36 over the past decade. While the company's 10-year median is 15.38 vs. the industry median of 8.30, BorgWarner has consistently been above 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 Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BorgWarner's current Interest Coverage of 14.16 is 70.7% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on BorgWarner and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BorgWarner's current Interest Coverage is 14.16, which is near median its own 10-year median of 15.38. 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 Interest Coverage of 14.16. 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 Interest Coverage is 14.16, which is near median its 10-year median of 15.38 and 70.7% above the Vehicles & Parts industry median of 8.30. BorgWarner's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For BorgWarner (MEX:BWA), the current Interest Coverage is 14.16 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:
Interest Coverage: 14.16 (near median its 10-year median of 15.38)
GF Value™: MXN571.13 vs. price of MXN1,001.80 (75.4% above fair value)
Industry Position: 70.7% above the Vehicles & Parts median (#407 of 1066)
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.
77GF Score
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