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BorgWarnerMEX:BWA 75 Return-on-Tangible-Asset is 8.59% as of Mar. 2026, which is 51% above its 10-year median of 5.70. GuruFocus rates MEX:BWA with a GF Score™ of 75/100 and a GF Value™ of MXN611.47. The stock has 1 warning sign investors should review. Among 1,332 Vehicles & Parts companies, BorgWarner ranks better than 50.23% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. BorgWarner's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN17,456 Mil. BorgWarner's average total tangible assets for the quarter that ended in Mar. 2026 was MXN203,193 Mil. Therefore, BorgWarner's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 8.59%.
The historical rank and industry rank for BorgWarner's Return-on-Tangible-Asset or its related term are showing as below:
MEX:BWA'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.46 Med: 5.7 Max: 12.24
Current: 3.19
During the past 13 years, BorgWarner's highest Return-on-Tangible-Asset was 12.24%. The lowest was 2.46%. And the median was 5.70%.
MEX:BWA's Return-on-Tangible-Asset is ranked better than 50.23% of 1332
companies
in the Vehicles & Parts industry
Industry Median: 3.125
vs MEX:BWA: 3.19
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
BorgWarner Return-on-Tangible-Asset Related Terms
BorgWarner Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for BorgWarner's Return-on-Tangible-Asset 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, APTV, AUR: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, BorgWarner's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where BorgWarner's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.59% mean?
BorgWarner (MEX:BWA) has a Return-on-Tangible-Asset of 8.59% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on BorgWarner and its competitors. This is 51% above median its historical median of 5.70. Over the past decade, BorgWarner's Return-on-Tangible-Asset has ranged from 2.46 to 12.24. According to the industry distribution chart, BorgWarner ranks #663 out of 1332 companies in the Vehicles & Parts industry, placing it in the top 49.8%.
Is BorgWarner's Return-on-Tangible-Asset too high?
BorgWarner's current Return-on-Tangible-Asset of 8.59% is 51% above median its 10-year median of 5.70. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 12.24. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.13. BorgWarner's value of 8.59% is 174.9% above this industry median. Based on the distribution chart, BorgWarner ranks #663 out of 1332 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, BorgWarner has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does BorgWarner's Return-on-Tangible-Asset compare to MOD and APTV?
According to the Vehicles & Parts industry distribution chart, BorgWarner ranks #663 out of 1332 companies for Return-on-Tangible-Asset. This puts BorgWarner in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.13. BorgWarner's value of 8.59% is 174.9% above this benchmark. Historically, BorgWarner's own Return-on-Tangible-Asset has ranged from 2.46 to 12.24 over the past decade. While the company's 10-year median is 5.70 vs. the industry median of 3.13, 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 Return-on-Tangible-Asset for a Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.13, based on 1,332 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BorgWarner's current Return-on-Tangible-Asset of 8.59% is 174.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on BorgWarner and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BorgWarner's current Return-on-Tangible-Asset is 8.59%, which is 51% above median its own 10-year median of 5.70. 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 Return-on-Tangible-Asset of 8.59%. The stock's GF Value™ is MXN611.47, compared to a current price of MXN1,001.80 — trading 63.8% above its estimated fair value. The current Return-on-Tangible-Asset is 8.59%, which is 51% above median its 10-year median of 5.70 and 174.9% above the Vehicles & Parts industry median of 3.13. BorgWarner's overall GF Score™ is 75/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For BorgWarner (MEX:BWA), the current Return-on-Tangible-Asset is 8.59% 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 63.8% above its estimated GF Value™ of MXN611.47.
Key valuation signals for MEX:BWA:
Return-on-Tangible-Asset: 8.59% (51% above median its 10-year median of 5.70)
GF Value™: MXN611.47 vs. price of MXN1,001.80 (63.8% above fair value)
Industry Position: 174.9% above the Vehicles & Parts median (#663 of 1332)
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.
75GF Score
Get the complete analysis for MEX:BWA
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