NYSE:LEA stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Nov 16, 2023

Discover LEAR CORP (NYSE:LEA), an undervalued stock highlighted by our stock screener. NYSE:LEA showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Assessing Valuation Metrics for NYSE:LEA

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:LEA scores a 8 out of 10:

LEA is valuated reasonably with a Price/Earnings ratio of 11.53.
LEA's Price/Earnings ratio is rather cheap when compared to the industry. LEA is cheaper than 85.71% of the companies in the same industry.
LEA is valuated cheaply when we compare the Price/Earnings ratio to 24.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.45, the valuation of LEA can be described as reasonable.
83.33% of the companies in the same industry are more expensive than LEA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 19.40. LEA is valued rather cheaply when compared to this.
LEA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEA is cheaper than 73.81% of the companies in the same industry.
LEA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LEA is cheaper than 71.43% of the companies in the same industry.
LEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LEA's earnings are expected to grow with 32.91% in the coming years.

How do we evaluate the Profitability for NYSE:LEA?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LEA was assigned a score of 5 for profitability:

LEA's Return On Assets of 3.85% is fine compared to the rest of the industry. LEA outperforms 66.67% of its industry peers.
The Return On Equity of LEA (11.58%) is better than 71.43% of its industry peers.
LEA's Return On Invested Capital of 9.04% is fine compared to the rest of the industry. LEA outperforms 73.81% of its industry peers.
The 3 year average ROIC (6.79%) for LEA is below the current ROIC(9.04%), indicating increased profibility in the last year.
The Profit Margin of LEA (2.45%) is better than 64.29% of its industry peers.

Assessing Health for NYSE:LEA

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:LEA, the assigned 5 for health provides valuable insights:

LEA has an Altman-Z score of 3.00. This indicates that LEA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.00, LEA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
LEA's Debt to FCF ratio of 4.71 is fine compared to the rest of the industry. LEA outperforms 66.67% of its industry peers.

Growth Analysis for NYSE:LEA

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:LEA, the assigned 6 reflects its growth potential:

The Earnings Per Share has grown by an impressive 65.13% over the past year.
The Revenue has grown by 12.73% in the past year. This is quite good.
The Earnings Per Share is expected to grow by 25.64% on average over the next years. This is a very strong growth
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of LEA

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.