In a market where value is scarce, NYSE:LEA offers a refreshing opportunity with its solid fundamentals.

Last update: Apr 4, 2024

Consider LEAR CORP (NYSE:LEA) as a top value stock, identified by our stock screening tool. NYSE:LEA shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Understanding NYSE:LEA's Valuation Score

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:LEA has received a 8 out of 10:

With a Price/Earnings ratio of 11.92, the valuation of LEA can be described as very reasonable.
88.10% of the companies in the same industry are more expensive than LEA, based on the Price/Earnings ratio.
LEA is valuated cheaply when we compare the Price/Earnings ratio to 26.07, which is the current average of the S&P500 Index.
LEA is valuated reasonably with a Price/Forward Earnings ratio of 9.87.
LEA's Price/Forward Earnings ratio is rather cheap when compared to the industry. LEA is cheaper than 80.95% of the companies in the same industry.
LEA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.41.
Based on the Enterprise Value to EBITDA ratio, LEA is valued a bit cheaper than 73.81% of the companies in the same industry.
73.81% of the companies in the same industry are more expensive than LEA, based on the Price/Free Cash Flow ratio.
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 21.74% in the coming years.

Looking at the Profitability

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's Return On Assets of 3.90% is fine compared to the rest of the industry. LEA outperforms 69.05% of its industry peers.
With an excellent Return On Equity value of 11.64%, LEA belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.96%, LEA is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
The last Return On Invested Capital (8.96%) for LEA is above the 3 year average (7.93%), which is a sign of increasing profitability.

Understanding NYSE:LEA's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LEA has achieved a 5 out of 10:

LEA has an Altman-Z score of 3.03. This indicates that LEA is financially healthy and has little risk of bankruptcy at the moment.
LEA has a Altman-Z score of 3.03. This is in the better half of the industry: LEA outperforms 71.43% of its industry peers.
LEA's Debt to FCF ratio of 4.45 is fine compared to the rest of the industry. LEA outperforms 66.67% of its industry peers.

How We Gauge Growth for NYSE:LEA

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:LEA has earned a 6 for growth:

LEA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.57%, which is quite impressive.
LEA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.33%.
The Earnings Per Share is expected to grow by 22.84% 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.

Our latest full fundamental report of LEA contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.