Published Feb 09, 2024 12:32AM ET
AUBURN HILLS, Mich. – BorgWarner Inc. (NYSE: NYSE:) has entered into a strategic relationship with FinDreams Battery, a subsidiary of BYD Company (OTC:) Limited, to become the preferred manufacturer of lithium iron phosphate (LFP) battery packs for commercial vehicles in Europe, the Americas, and parts of Asia Pacific. The agreement grants BorgWarner exclusive rights to localize LFP battery packs using FinDreams Battery’s blade cells for a period of eight years.
Under the terms of the partnership, BorgWarner will not only have access to FinDreams Battery’s advanced blade cells but also to their intellectual property regarding battery pack design and manufacturing processes. The collaboration aims to meet the growing demand for LFP cell technology in commercial vehicles, which is noted for its cost competitiveness and increasing global importance.
Frédéric Lissalde, President and CEO of BorgWarner, highlighted the company’s enthusiasm for the technology and partnership, citing FinDreams Battery’s over two decades of experience in the LFP battery sector. Micheal He, President and CEO of FinDreams Battery, expressed similar sentiments, emphasizing the cooperative effort to accelerate the electrification of commercial vehicles internationally.
This move by BorgWarner is in line with its long-standing tradition of innovation in the mobility sector. The company has been at the forefront of bringing new mobility solutions to the market for over 130 years and is currently focused on advancing eMobility to support a cleaner and safer future.
This report is based on a press release statement from BorgWarner, and contained forward-looking statements, which are based on current management expectations and are subject to risks and uncertainties that could cause actual results to differ materially.
As BorgWarner Inc. (NYSE: BWA) embarks on a new venture with FinDreams Battery, the financial metrics and analyst perspectives from InvestingPro provide a comprehensive picture of the company’s current market position. With a market capitalization of approximately $7.4 billion and a price-to-earnings (P/E) ratio of 12.55, BorgWarner appears to be valued reasonably in the market. The adjusted P/E ratio for the last twelve months as of Q4 2023 stands at 9.25, suggesting a potentially more attractive valuation when considering the company’s earnings.
In terms of financial performance, BorgWarner has faced challenges with a revenue decline of 10.14% over the last twelve months as of Q4 2023. Additionally, the company’s gross profit margin during the same period was 18.09%, which reflects some of the pressures highlighted by the InvestingPro Tips, such as weak gross profit margins.
Despite the recent declines in revenue and stock price, BorgWarner’s financial stability is underscored by its ability to maintain dividend payments for 11 consecutive years. This consistency in returning value to shareholders is a testament to the company’s financial management, even as analysts anticipate a sales decline in the current year. Moreover, the company’s cash flows can sufficiently cover interest payments, and its liquid assets exceed short-term obligations, indicating a solid liquidity position.
InvestingPro Tips also reveal that while the stock has taken a significant hit over the last week and six months, trading near its 52-week low, analysts predict the company will be profitable this year and it has been profitable over the last twelve months. Investors looking for a deeper dive into BorgWarner’s financials and future prospects can find 11 additional InvestingPro Tips on https://www.investing.com/pro/BWA. To enhance your investing strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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