Investors should take notice of NYSE:LEA—it offers a great deal for the fundamentals it presents.

Our stock screening tool has identified LEAR CORP (NYSE:LEA) as an undervalued gem with strong fundamentals. NYSE:LEA boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:LEA, the assigned 8 reflects its valuation:

• Based on the Price/Earnings ratio of 11.36, the valuation of LEA can be described as reasonable.
• Based on the Price/Earnings ratio, LEA is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 24.84, LEA is valued rather cheaply.
• LEA is valuated reasonably with a Price/Forward Earnings ratio of 9.42.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of LEA indicates a rather cheap valuation: LEA is cheaper than 80.95% of the companies listed in the same industry.
• LEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 73.81% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 73.81% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• LEA's earnings are expected to grow with 20.64% in the coming years. This may justify a more expensive valuation.

Profitability Insights: 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's Return On Assets of 3.90% is fine compared to the rest of the industry. LEA outperforms 69.05% of its industry peers.
• LEA has a Return On Equity of 11.64%. This is amongst the best in the industry. LEA outperforms 80.95% of its industry peers.
• LEA's Return On Invested Capital of 8.96% is fine compared to the rest of the industry. LEA outperforms 78.57% of its industry peers.
• The 3 year average ROIC (7.93%) for LEA is below the current ROIC(8.96%), indicating increased profibility in the last year.

Health Insights: NYSE:LEA

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LEA has received a 5 out of 10:

• An Altman-Z score of 3.01 indicates that LEA is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.01, LEA is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
• LEA has a Debt to FCF ratio of 4.45. This is in the better half of the industry: LEA outperforms 66.67% of its industry peers.

Growth Analysis for NYSE:LEA

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:LEA boasts a 6 out of 10:

• 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.
• Looking at the last year, LEA shows a quite strong growth in Revenue. The Revenue has grown by 12.33% in the last year.
• LEA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.84% yearly.
• 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.
• 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.

Check the latest full fundamental report of LEA for a complete fundamental analysis.

Disclaimer

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.