NYSE:LEA appears to be flying under the radar despite its strong fundamentals.

Take a closer look at LEAR CORP (NYSE:LEA), a remarkable value stock uncovered by our stock screener. NYSE:LEA excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Examination for NYSE:LEA

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:LEA has earned a 8 for valuation:

• Based on the Price/Earnings ratio of 11.09, the valuation of LEA can be described as reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 88.10% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 25.97. LEA is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 8.12 indicates a reasonable valuation of LEA.
• Based on the Price/Forward Earnings ratio, LEA is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
• LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.90, which is the current average of the S&P500 Index.
• LEA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEA is cheaper than 78.57% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, LEA is valued a bit cheaper than 71.43% of the companies in the same industry.
• The 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 32.54% in the coming years.

What does the Profitability looks like for NYSE:LEA

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:LEA has achieved a 5:

• LEA has a Return On Assets of 3.85%. This is in the better half 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 has a Return On Invested Capital of 9.04%. This is in the better half of the industry: LEA outperforms 71.43% of its industry peers.
• The last Return On Invested Capital (9.04%) for LEA is above the 3 year average (6.79%), which is a sign of increasing profitability.
• LEA's Profit Margin of 2.45% is fine compared to the rest of the industry. LEA outperforms 61.90% of its industry peers.

Health Analysis for NYSE:LEA

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:LEA scores a 5 out of 10:

• With a decent Altman-Z score value of 2.98, LEA is doing good in the industry, outperforming 61.90% of the companies in the same industry.
• LEA has a Debt to FCF ratio of 4.71. This is in the better half of the industry: LEA outperforms 69.05% of its industry peers.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:LEA has received a 6 out of 10:

• 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.
• Based on estimates for the next years, LEA will show a very strong growth in Earnings Per Share. The EPS will grow by 25.65% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.