Seeking Alpha: 2015 May Be Tough, But BorgWarner Is Tougher

All in all, BorgWarner (NYSE:BWA) hasn't really gone anywhere since I last wrote about this high-quality auto parts supplier. While the shares have traded between $48 and $68, the net change since that last article has been virtually zero. That's not too surprising relative to the performance of Cummins (NYSE:CMI), Allison (NYSE:ALSN), or Tenneco (NYSE:TEN), but it is enough to have me reconsidering whether this is a buying opportunity for a stock that is rarely cheap and a company that is well-placed to leverage the seemingly inexorable drive toward more efficient vehicles.

With increasingly demanding fuel economy and emission requirements potentially adding more than $1,000 in vehicle content by 2020 (and continuing on after), I like the prospects for BorgWarner to deliver strong revenue growth and at least decent margin leverage. This year could be dicey given foreign exchange headwinds and uninspired European production expectations, and the valuation is not a screaming bargain on a cash flow basis, but few comparables seem as well-placed to generate multiple years of double-digit growth as BorgWarner.

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2015 May Be Tough, But BorgWarner Is Tougher