Is BORGWARNER INC (BWA) Halal?

NYSE Consumer Cyclical United States $11.2B
✗ NOT HALAL
Confidence: 90/100
BORGWARNER INC (BWA) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 36.6% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. BORGWARNER INC operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 36.6%
/ 30%
20.9%
/ 30%
26.9%
/ 30%
0.42%
/ 5%
✗ NOT HALAL
DJIM 36.6%
/ 33%
20.9%
/ 33%
26.9%
/ 33%
0.42%
/ 5%
✗ NOT HALAL
MSCI 29.5%
/ 33%
16.8%
/ 33%
21.6%
/ 33%
0.42%
/ 5%
✓ HALAL
S&P 36.6%
/ 33%
20.9%
/ 33%
26.9%
/ 33%
0.42%
/ 5%
✗ NOT HALAL
FTSE 29.5%
/ 33%
16.8%
/ 33%
21.6%
/ 50%
0.42%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
42.4
Forward: 9.3
EPS
$1.28
Dividend Yield
125.0%
Payout: 43.8%
P/B Ratio
2.1
EV/EBITDA
6.6
EV: $13.1B
Revenue
$14.3B
Growth: 3.9%
Beta
1.0
Average volatility
Current Ratio
2.1

Profitability

Gross Margin 18.6%
Operating Margin 11.3%
Net Margin 1.9%
Return on Equity (ROE) 5.9%
Return on Assets (ROA) 6.1%

Cash Flow & Balance Sheet

Operating Cash Flow$1.6B
Free Cash Flow$1.2B
Total Debt$4.1B
Debt-to-Equity72.3
Current Ratio2.1
Total Assets$13.8B

Price & Trading

Last Close$54.76
50-Day MA$53.58
200-Day MA$44.51
Avg Volume3.0M
Beta1.0
52-Week Range
$24.40
$70.08

About BORGWARNER INC (BWA)

CEO
Mr. Joseph F. Fadool
Employees
37,500
Sector
Consumer Cyclical
Industry
Auto Parts
Country
United States
Exchange
NYSE
Market Cap
$11.2B
Currency
USD

BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through the Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems segments. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, and battery cooling systems. The company also provides chain systems and variable camshaft phasing products; friction and mechanical products for automatic transmissions, including dual clutch modules, friction clutch modules, electromagnetic clutches, friction and separator plates, transmission bands, torque converter clutches, one-way clutches, and torsional vibration dampers; hydraulic controls products for automatic transmissions, such as electro-hydraulic solenoids for standard and hydraulic systems, transmission solenoid modules and dual clutch hydraulic control modules; and torque management products comprising transfer cases and couplings; electronic limited slip differentials, electric torque vectoring products, and axle disconnect systems. In addition, it offers power electronics, including inverters, onboard chargers, DC/DC converters, and combination boxes; rotating electric machines comprising eMotors and generators; fully integrated drive modules consisting of inverters and gear reducers; and electronic controls, such as engine control units, transmission control units, battery management systems, propulsion controllers, and domain controllers. Further, the company provides battery and charging systems, including nickel manganese cobalt battery packs and lithium iron phosphate battery packs. BorgWarner Inc. was formerly known as Borg-Warner Automotive, Inc. The company was founded in 1928 and is headquartered in Auburn Hills, Michigan.

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Frequently Asked Questions

Is BORGWARNER INC (BWA) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), BORGWARNER INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is BORGWARNER INC's debt ratio?

BORGWARNER INC's debt ratio is 36.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 29.5%.

What are BORGWARNER INC's key financial metrics?

BORGWARNER INC has a market capitalization of $11.2B, trailing P/E ratio of 42.4, and revenue of $14.3B. The company maintains a gross margin of 18.6% and a net margin of 1.9%. Return on equity stands at 5.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.