LEAR CORP (LEA) Stock Fundamental Analysis
NYSE:LEA - New York Stock Exchange, Inc. - US5218652049 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to LEA. LEA was compared to 81 industry peers in the Automobile Components industry. LEA has a medium profitability rating, but doesn't score so well on its financial health evaluation. LEA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
LEA had positive earnings in the past year.
In the past year LEA had a positive cash flow from operations.
In the past 5 years LEA has always been profitable.
In the past 5 years LEA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEA (3.61%) is worse than 62.96% of its industry peers.
With an excellent Return On Equity value of 11.38%, LEA belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.94%, LEA belongs to the best of the industry, outperforming 86.42% of the companies in the same industry.
LEA had an Average Return On Invested Capital over the past 3 years of 8.42%. This is in line with the industry average of 8.98%.
The 3 year average ROIC (8.42%) for LEA is below the current ROIC(8.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 11.38% | ||
| ROIC | 8.94% |
ROA(3y)3.3%
ROA(5y)2.78%
ROE(3y)10.01%
ROE(5y)8.33%
ROIC(3y)8.42%
ROIC(5y)7.66%
1.3 Margins
The Profit Margin of LEA (2.17%) is worse than 67.90% of its industry peers.
In the last couple of years the Profit Margin of LEA has declined.
With a Operating Margin value of 4.39%, LEA is not doing good in the industry: 71.60% of the companies in the same industry are doing better.
LEA's Operating Margin has declined in the last couple of years.
LEA has a Gross Margin of 7.62%. This is amonst the worse of the industry: LEA underperforms 90.12% of its industry peers.
LEA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | 2.17% | ||
| GM | 7.62% |
OM growth 3Y-0.38%
OM growth 5Y-7.19%
PM growth 3Y3.85%
PM growth 5Y-10.6%
GM growth 3Y0.04%
GM growth 5Y-4.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEA is still creating some value.
The number of shares outstanding for LEA has been reduced compared to 1 year ago.
The number of shares outstanding for LEA has been reduced compared to 5 years ago.
Compared to 1 year ago, LEA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that LEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
LEA has a Altman-Z score of 2.93. This is in the better half of the industry: LEA outperforms 69.14% of its industry peers.
The Debt to FCF ratio of LEA is 4.92, which is a neutral value as it means it would take LEA, 4.92 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.92, LEA is not doing good in the industry: 61.73% of the companies in the same industry are doing better.
LEA has a Debt/Equity ratio of 0.62. This is a neutral value indicating LEA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.62, LEA is not doing good in the industry: 79.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.09
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.32 indicates that LEA should not have too much problems paying its short term obligations.
LEA has a worse Current ratio (1.32) than 87.65% of its industry peers.
LEA has a Quick Ratio of 1.02. This is a normal value and indicates that LEA is financially healthy and should not expect problems in meeting its short term obligations.
LEA has a Quick ratio of 1.02. This is amonst the worse of the industry: LEA underperforms 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.00% over the past year.
Measured over the past years, LEA shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.01% on average per year.
Looking at the last year, LEA shows a decrease in Revenue. The Revenue has decreased by -0.69% in the last year.
The Revenue has been growing slightly by 3.30% on average over the past years.
EPS 1Y (TTM)5%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-2.97%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%-2.17%
3.2 Future
LEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.36% yearly.
The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y-4.59%
EPS Next 2Y6.99%
EPS Next 3Y11.18%
EPS Next 5Y14.36%
Revenue Next Year-3.95%
Revenue Next 2Y-0.2%
Revenue Next 3Y0.73%
Revenue Next 5Y2.41%
3.3 Evolution
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.67, the valuation of LEA can be described as very cheap.
LEA's Price/Earnings ratio is rather cheap when compared to the industry. LEA is cheaper than 83.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. LEA is valued rather cheaply when compared to this.
LEA is valuated cheaply with a Price/Forward Earnings ratio of 6.99.
Based on the Price/Forward Earnings ratio, LEA is valued a bit cheaper than the industry average as 72.84% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.38. LEA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
71.60% of the companies in the same industry are more expensive than LEA, based on the Enterprise Value to EBITDA ratio.
64.20% of the companies in the same industry are more expensive than LEA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.99%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, LEA has a reasonable but not impressive dividend return.
LEA's Dividend Yield is comparable with the industry average which is at 4.50.
LEA's Dividend Yield is a higher than the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
The dividend of LEA has a limited annual growth rate of 0.74%.
LEA has been paying a dividend for at least 10 years, so it has a reliable track record.
LEA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.74%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
LEA pays out 34.29% of its income as dividend. This is a sustainable payout ratio.
The dividend of LEA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.29%
EPS Next 2Y6.99%
EPS Next 3Y11.18%
NYSE:LEA (4/29/2025, 10:05:35 AM)
84.07
-0.59 (-0.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.72%
Inst Owner Change0.21%
Ins Owners0.47%
Ins Owner Change20.96%
Market Cap4.50B
Analysts75.24
Price Target98.67 (17.37%)
Short Float %3.56%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend3.14
Dividend Growth(5Y)0.74%
DP34.29%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.87%
Min EPS beat(2)8.8%
Max EPS beat(2)12.95%
EPS beat(4)4
Avg EPS beat(4)7.69%
Min EPS beat(4)4.11%
Max EPS beat(4)12.95%
EPS beat(8)7
Avg EPS beat(8)5.37%
EPS beat(12)11
Avg EPS beat(12)8.07%
EPS beat(16)13
Avg EPS beat(16)7.38%
Revenue beat(2)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)2.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)2.32%
Revenue beat(8)5
Avg Revenue beat(8)0.89%
Revenue beat(12)9
Avg Revenue beat(12)0.99%
Revenue beat(16)11
Avg Revenue beat(16)1.23%
PT rev (1m)-21.4%
PT rev (3m)-28.78%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-16.98%
EPS NY rev (1m)-5.7%
EPS NY rev (3m)-11.56%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-7.7%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.99 | ||
| P/S | 0.19 | ||
| P/FCF | 8.02 | ||
| P/OCF | 4.02 | ||
| P/B | 1.01 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 3.78 |
EPS(TTM)12.61
EY15%
EPS(NY)12.03
Fwd EY14.31%
FCF(TTM)10.49
FCFY12.47%
OCF(TTM)20.92
OCFY24.88%
SpS435.3
BVpS83.15
TBVpS51.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 11.38% | ||
| ROCE | 11.91% | ||
| ROIC | 8.94% | ||
| ROICexc | 10.2% | ||
| ROICexgc | 13.16% | ||
| OM | 4.39% | ||
| PM (TTM) | 2.17% | ||
| GM | 7.62% | ||
| FCFM | 2.41% |
ROA(3y)3.3%
ROA(5y)2.78%
ROE(3y)10.01%
ROE(5y)8.33%
ROIC(3y)8.42%
ROIC(5y)7.66%
ROICexc(3y)9.67%
ROICexc(5y)8.89%
ROICexgc(3y)12.82%
ROICexgc(5y)12%
ROCE(3y)11.21%
ROCE(5y)10.19%
ROICexcg growth 3Y3.48%
ROICexcg growth 5Y-8.63%
ROICexc growth 3Y4.84%
ROICexc growth 5Y-6.82%
OM growth 3Y-0.38%
OM growth 5Y-7.19%
PM growth 3Y3.85%
PM growth 5Y-10.6%
GM growth 3Y0.04%
GM growth 5Y-4.59%
F-Score5
Asset Turnover1.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 4.92 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 90.01% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 8.83 | ||
| Cash Conversion | 68.19% | ||
| Profit Quality | 110.82% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.93 |
F-Score5
WACC8.23%
ROIC/WACC1.09
Cap/Depr(3y)101.46%
Cap/Depr(5y)98.02%
Cap/Sales(3y)2.71%
Cap/Sales(5y)2.76%
Profit Quality(3y)112.18%
Profit Quality(5y)98.37%
High Growth Momentum
Growth
EPS 1Y (TTM)5%
EPS 3Y16.72%
EPS 5Y-2.01%
EPS Q2Q%-2.97%
EPS Next Y-4.59%
EPS Next 2Y6.99%
EPS Next 3Y11.18%
EPS Next 5Y14.36%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y6.56%
Revenue growth 5Y3.3%
Sales Q2Q%-2.17%
Revenue Next Year-3.95%
Revenue Next 2Y-0.2%
Revenue Next 3Y0.73%
Revenue Next 5Y2.41%
EBIT growth 1Y-5.22%
EBIT growth 3Y6.16%
EBIT growth 5Y-4.12%
EBIT Next Year49.13%
EBIT Next 3Y20.35%
EBIT Next 5YN/A
FCF growth 1Y-9.86%
FCF growth 3Y87.62%
FCF growth 5Y-3.77%
OCF growth 1Y-10.34%
OCF growth 3Y18.68%
OCF growth 5Y-2.7%