When you look at NYSE:LEA, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Uncover the potential of LEAR CORP (NYSE:LEA) as our stock screener's choice for an undervalued stock. NYSE:LEA maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

What does the Valuation looks like 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:

• The Price/Earnings ratio is 9.89, which indicates a very decent valuation of LEA.
• Based on the Price/Earnings ratio, LEA is valued cheaper than 90.48% of the companies in the same industry.
• When comparing the Price/Earnings ratio of LEA to the average of the S&P500 Index (28.19), we can say LEA is valued rather cheaply.
• The Price/Forward Earnings ratio is 6.84, which indicates a rather cheap valuation of LEA.
• Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio is at 19.98. LEA is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEA indicates a somewhat cheap valuation: LEA is cheaper than 78.57% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, LEA is valued a bit cheaper than 76.19% 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 21.42% 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 3.62% is fine compared to the rest of the industry. LEA outperforms 69.05% of its industry peers.
• Looking at the Return On Equity, with a value of 11.01%, LEA is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
• The Return On Invested Capital of LEA (9.06%) is better than 76.19% of its industry peers.
• The last Return On Invested Capital (9.06%) for LEA is above the 3 year average (7.93%), which is a sign of increasing profitability.

Looking at the Health

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:

• LEA's Altman-Z score of 2.94 is fine compared to the rest of the industry. LEA outperforms 69.05% of its industry peers.
• LEA has a Debt to FCF ratio of 4.45. This is in the better half of the industry: LEA outperforms 69.05% of its industry peers.

A Closer Look at 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 5 for growth:

• The Earnings Per Share has grown by an impressive 27.81% over the past year.
• The Revenue has grown by 9.70% in the past year. This is quite good.
• LEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.85% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• 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.

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

Disclaimer

This article should in no way be interpreted as advice. 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.